23 AUGUST 2016
BIONOR PHARMA ASA
INTERIM FINANCIAL REPORT
1 JANUARY - 30 JUNE 2016
UNAUDITED
HIGHLIGHTS Q2 2016
In the second quarter of 2016, Bionor continued its preparation of upcoming trials. A strategic and financial review was initiated and an outline for funding of the company's operations was announced end-May. The company's Board of Directors reiterated its strategy to advance Vacc-4x in clinical development in order to develop a possible functional HIV cure.
- The positive results from the clinical trial REDUC Part B was published in the peer-reviewed and highly recognized journal The Lancet HIV
- Approval of clinical trial applications for BIOSKILL was granted by regulatory authorities in Germany, France and Australia. An IND application for the U.S. Food and Drug Administration (FDA) is planned for submission later in August 2016
- The Board decided to put on hold additional BIOSKILL related activities until alternative and less capital demanding development paths have been explored for functional HIV cure with Vacc-4x at its core
- Significant cost saving initiatives have been initiated by the Board, including cancellation or sublease of offices in the US, Denmark and Norway. Currently expected savings of approximately NOK 6 million per quarter when fully implemented by 1 January 2017, excluding any effect of organizational changes implemented in H2 2016 (see below)
- Total contractual liabilities have been significantly reduced from NOK 32.5 million in Q1 2016 to 7.6 million in Q2 2016
- At the company's annual general meeting on 22 April 2016, a number of resolutions were rejected by the shareholders. An extraordinary general meeting 6 June 2016 handled the rejected proposals
- Board member Steen Kroeyer was elected on 22 April 2016 and board member Helene Jebsen Anker was elected on 6 June 2016. Board members Benedicte Fossum, Kirsten Drejer and Jerome B. Zeldis resigned from the Board on 28 April 2016
- On 26 April 2016, the company announced that Dr. David Horn Solomon and Bionor's Board of Directors had agreed that Dr. David Horn Solomon on the same day would leave his position as Chief Executive Officer of Bionor Pharma ASA, owing to a shareholder led change in company strategy
- The Board appointed MSc. Pharmacist Unni Hjelmaas as acting CEO on 27 April 2016
- Net cash flow in Q2 2016 was NOK -29.3 million (Q2 2015: NOK -19.7 million)
- Cash and cash equivalents at 30 June 2016 was NOK 12.4 million (30 June 2015: NOK 55.5 million).
EVENTS AFTER THE BALANCE SHEET DATE
On 18 August 2016, the company announced that it had raised a total of NOK 105 million in new equity by an agreement with certain new investors regarding full subscription of a NOK 52.5 million private placement, subject to approval at an extraordinary general meeting 9 September 2016, as well as a proposed, subsequent, fully underwritten rights offering of NOK 52.5 million. Following completion of the private placement, the company will be fully funded under the current strategy for no less than 12 months. The company's main shareholder has committed to vote in favor of the private placement and the rights offering, and not to sell any Bionor shares prior to the extraordinary general meeting.
The current strategy of Bionor is to further advance Vacc-4x in clinical development to develop a functional cure for HIV. As a consequence of the new, expected ownership structure following the private placement and subsequent fully underwritten rights offering, a new Board of Directors will be elected at the extraordinary general meeting on 9 September 2016.
Accordingly, the company's strategy will be evaluated by the new Board of Directors, which may lead to a reassessment of the company's current short and long-term strategies. Until such further assessments have been undertaken all planning of clinical trials is put on hold.
In connection with the agreement with certain new investors regarding the private placement and fully underwritten rights offering, all operations in Denmark and the U.S. have been terminated or are in the process of being terminated, and the following has been agreed with regard to the company's management and key employees:
- SVP Chief Strategy and Business Officer, Kamilla Rolsted, and VP for Investor Relations and Communications, Joergen Fischer Ravn, agreed with the company that their employment would discontinue from and including 1 September 2016. SVP General Counsel and Chief Patent Officer Barbara Ruskin will continue to provide services to the company on a part-time consultancy basis and CFO Jens Kroeis will continue his role as CFO in the company on a full-time consultancy basis until 31 December 2016.
Per S. Thoresen, Chairman of the Board of Directors, commented:
"On behalf of the company and the Board of Directors, I am very pleased to confirm that we have succeeded in raising more than NOK 100 million from high quality investors at a decisive moment in the company's history. The Management, Board of Directors and its advisors have looked at various options to strengthen the company's financial situation, and are confident that the proposed solution, which is supported by the company's main shareholder is in the best interest of Bionor and its shareholders. The completion of the private placement and rights offering will create a solid financial environment for Bionor's continued clinical activities after a long period with uncertainty."
FINANCIAL GUIDANCE FOR 2016
For the full year 2016, Bionor now expects a Core cost base of NOK 52-59 million. Previously, a Core cost base of NOK 58-66 million was expected. The reduced Core cost base is due to cost saving initiatives implemented in Q2 2016. Currently, expected savings will amount to approximately NOK 6 million per quarter when fully implemented by 1 January 2017, excluding any organizational changes implemented in H2 2016.
Following the private placement of NOK 52.5 and subsequent fully underwritten rights offering of NOK 52.5 million, the company will be fully funded under the current strategy for no less than 12 months. The Core cost base is defined as Employee Benefit Expenses plus Other operating expenses.
CONTACT INFORMATION
Per S. Thoresen, Chairman of the Board of Directors, +47 906 14 620
Unni Hjelmaas, Acting CEO, +47 915 19 651, uh@bionorpharma.com
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
PLEASE SEE THE FULL REPORT IN THE ATTACHED PDF.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Bionor Pharma ASA via Globenewswire
