CHAPEL HILL, NORTH CAROLINA--(Marketwire - May 13, 2010) - This document corrects and replaces the release sent earlier today at 6:31 PM EDT. The title of the release has been changed from “Adherex Reports 2009 Financial Results” to “Adherex Reports First Quarter 2010 Financial Results”
Adherex Technologies Inc. (TSX: AHX) today reported its financial results for the first quarter ended March 31, 2010. All amounts are in U.S. dollars.
Financial Update
The net loss for the three month period ended March 31, 2010 was $0.4 million, or a loss of $0.00 per share, compared to a net loss of $2.3 million, or a loss of $0.02 per share, in the same period in 2009. Operating expenses totaled $0.4 million, as compared to $2.0 million in the same period in 2009.
Cash and cash equivalents totaled $0.3 million at March 31, 2010, compared to $0.7 million at December 31, 2009. At March 31, 2010, the Company had working capital totaling approximately $0.05 million. The decreased cash balance reflects expenditures used to fund operations and resolve contingent liabilities.
The selected financial data presented below is derived from our unaudited interim consolidated financial statements which were prepared in accordance with U.S. generally accepted accounting principles. The complete consolidated financial statements for the quarter ended March 31, 2010 and management’s discussion and analysis of financial condition and results of operations will be available via our website at www.sec.gov and www.sedar.com.
Corporate Update
As announced on April 30, 2010, the Company reported that it has completed a first closing of a non-brokered private placement (“Private Placement”) of 240,066,664 units, at a price of $0.03 per unit for gross proceeds of CDN$7,202,000. Adherex intends to raise up to an additional CDN$1,800,000 by way of a Private Placement which will occur in one or more closings and up to an additional CDN$12,750,000 by way of a rights offering.
The equity financings will consist of:
-- a non-brokered private placement by Adherex of between 240,000,000 and 300,000,000 units, at a price of $0.03 per unit for gross proceeds of between CDN$7,200,000 and CDN$9,000,000; and -- a rights offering to its shareholders for the distribution of rights to subscribe for 425,000,000 units at a price of $0.03 per unit, for gross proceeds of up to $12,750,000.
“We would like to thank existing and new investors participating in our recently completed financing. We are enthusiastic about moving the development of eniluracil forward,” said Mr. Rosty Raykov, Chief Executive Officer of Adherex.
Annual General Meeting of Shareholders
Adherex also announced that it will hold its Annual General Meeting of Shareholders on Thursday, June 24, 2010 at 10 am ET at the Sofitel Montreal Golden Mile, Montreal, Quebec.
About Adherex Technologies
Adherex Technologies Inc. is a biopharmaceutical company focused on the development of eniluracil and 5-fluorouaricil.
FINANCIAL CHARTS FOLLOW
Adherex Technologies Inc.
Selected Financial Data
(U.S. dollars in thousands except per share amounts)
Interim Consolidated Balance Sheets: March 31, 2010 December 31, 2009 -------------------------------------------------------------------------- Assets: Cash and cash equivalents $ 348 $ 685 Other current assets 122 148 -------------------------------------------------------------------------- Total assets 470 833 -------------------------------------------------------------------------- -------------------------------------------------------------------------- Liabilities and stockholders’ equity: Current liabilities 423 318 Other long-term liabilities 7 108 Total stockholders’ equity 40 407 -------------------------------------------------------------------------- Total liabilities and stockholders’ equity $ 470 $ 833 -------------------------------------------------------------------------- -------------------------------------------------------------------------- Interim Consolidated Statements of Operations: Three Months Ended -------------------------------------------------------------------------- March 31, 2010 March 31, 2009 -------------------------------------------------------------------------- Revenue $ - $ - Operating expenses: Research and development 163 1,279 Impairment of Capital Assets --- --- Gain on Deferred Lease Inducements --- --- General and administrative 203 673 -------------------------------------------------------------------------- Loss from operations (366) (1,952) -------------------------------------------------------------------------- Other income (expense) - (340) Interest income - 46 -------------------------------------------------------------------------- Net loss and comprehensive loss (366) (2,246) -------------------------------------------------------------------------- -------------------------------------------------------------------------- Basic and diluted net loss per common share (0.00) (0.02) -------------------------------------------------------------------------- --------------------------------------------------------------------------
This press release contains forward-looking statements that involve significant risks and uncertainties. The actual results, performance or achievements of the Company might differ materially from the results, performance or achievements of the Company expressed or implied by such forward-looking statements. Such forward-looking statements include, without limitation, those regarding our development plans and the expected funding, timing and results of our development as well as our efforts to pursue strategic alternatives. We can provide no assurance that development will proceed as currently anticipated, that previous results will be predictive of future outcomes, that the expected funding, timing or results of our development will be realized, or that we will be able to form strategic collaborations or partnerships with other companies. We are subject to various risks, including our near term need for additional capital to fund our operations, current and anticipated conditions in the economy and financial markets, our history of losses, our ability to continue to meet the listing requirements of the TSX, the uncertainties of clinical trials, drug development and regulatory review, the early stage of our product candidates, our reliance on collaborative partners, and other risks inherent to the biopharmaceutical industry. For a more detailed discussion of related risk factors, please refer to our public filings available at www.sec.gov and www.sedar.com.
Contacts:
Adherex Technologies Inc.
Rosty Raykov
Chief Executive Officer
919-636-5144
