TORONTO, Aug. 25, 2015 (GLOBE NEWSWIRE) -- Profound Medical Corp. (“Profound” or “Company”) (TSXV:PRN), a medical device company developing and commercializing a unique, minimally invasive treatment to ablate the prostate gland in prostate cancer patients, today reported financial results for the three and six months ended June 30, 2015. Amounts, unless specified otherwise, are expressed in Canadian dollars and are presented under International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”).
“The completion of our going-public transaction and concurrent $28 million financings in June enabled us to advance our CE Mark submission and enrollment for our TULSA-PRO pivotal trial,” said Steve Plymale, CEO of Profound. “We are properly capitalized to achieve our 2015 – 2017 milestones.”
Corporate Highlights
- On June 4, 2015, Profound announced the completion of its qualifying transaction (“Transaction”) with Profound Medical Inc. (“PMI”). The Company’s common shares commenced trading on June 8, 2015 on the TSX Venture Exchange under the ticker symbol “PRN”. The Company and PMI satisfied the escrow release conditions of the previously announced private placement (“Private Placement”) for gross proceeds of approximately $24 million. The escrowed funds, net of expenses, were released to the Company. The Company is well capitalized as a result of this transaction. Further information regarding the Company and the Transaction are set out in the Company’s filing statement dated May 22, 2015 which has been filed on SEDAR (www.sedar.com).
- “As we begin to execute our business development strategy, we are pleased to announce that Profound has signed its first development agreement,” said Steve Plymale. On July 21, 2015, Royal Philips (NYSE:PHG) (AEX:PHIA) and Profound announced that they signed a joint development agreement to support Profound Medical’s proprietary TULSA technology designed to treat patients with prostate cancer on Philips’ Ingenia and Achieva 3T MRI systems.
Summary Second Quarter 2015 Results
Profound incurred net loss and comprehensive loss of $8,698,717 (loss per share of $0.67 ) for the three months ended June 30, 2015, compared to net loss and comprehensive loss of $3,931,446 (loss per share of $1.81) for the three months ended June 30, 2014. For the three months ended June 30, 2015, the net loss was attributed to the finance costs related to the interest and accretion expense of $4,764,823 largely due to acceleration of the accretion as a result of the conversion of the preferred shares prior to the originally scheduled maturity date, the listing expense of the Transaction of $2,058,234, the ongoing research and development (“R&D”) expenses of $1,105,381, and the general and administrative (“G&A”) expenses of $3,393,128. G&A expense includes marketing expense of $2,303,034, discussed further below. This was partially offset by the gain on conversion of the convertible notes (“Notes”) of $1,759,885.
R&D expenses were $1,105,381 for the three months ended June 30, 2015 compared to $480,842 for the three months ended June 30, 2014. This increase in R&D expenses is mainly due to activities in preparing regulatory filings for marketing approval in Canada and Europe, and preparation for an Investigational Device Exemption submission to the FDA for the initiation of a multi-jurisdictional pivotal trial.
For the three months ended June 30, 2015, G&A expenses were $3,393,128 compared to $338,380 for the three months ended June 30, 2014. This increase is primarily as a result of inclusion of marketing expense of $2,303,034 related to the excess of proceeds received on the Knight Loan, which represents additional value provided to the Company as a result of the Knight relationship, and activities related to the Transaction and the closing of the Private Placement.
Liquidity and Outstanding Share Capital
As at June 30, 2015, Profound had cash of $25,959,227 compared to $406,495 as at December 31, 2014. The increase in cash is mainly a result of cash flows provided by financing and investing activities which were partially offset by cash flows used in operating activities. The cash flows provided by financing activities related principally to the issuance of common shares in connection with the Private Placement for gross proceeds of $24,008,828, the $4,000,000 proceeds from the Knight loan and the $1,500,000 proceeds from the Notes issuance. The cash flows provided by investing activities relate to cash acquired from Profound as part of the Transaction.
As at August 25, 2015, Profound had an unlimited number of authorized common shares with 39,473,327 common shares issued and outstanding.
For complete financial results, please see our filings at www.sedar.com and our website at www.profoundmedical.com
About Profound Medical Corp.
Profound Medical is a Canadian medical device company that has developed a unique and minimally invasive treatment to ablate the prostate gland in prostate cancer patients. Profound’s novel technology combines real-time MRI imaging with transurethral therapeutic ultrasound and closed-loop thermal feedback control. It provides a highly precise treatment tailored to patient-specific anatomy and pathology. This method of prostate ablation offers short treatment times and low morbidity, allowing for fast patient recovery. The potential of this technology is currently being demonstrated in clinical trials. For more information, visit profoundmedical.com
Notice regarding forward-looking statements:
This release includes forward-looking statements regarding Profound and its business which may include, but is not limited to, the expectations regarding the efficacy of Profound’s technology in the treatment of prostate cancer. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “is expected”, “expects”, “scheduled”, “intends”, “contemplates”, “anticipates”, “believes”, “proposes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Such statements are based on the current expectations of the management of each entity. The forward-looking events and circumstances discussed in this release, may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, including risks regarding the pharmaceutical industry, economic factors, the equity markets generally and risks associated with growth and competition. Although Profound has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Profound undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, other than as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CONTACT: For investor or media inquiries, please contact: Shameze Rampertab CFO Profound Medical Corp. srampertab@profoundmedical.com T: 647-476-1350, Ext. 424 Or Rebecca von Goetz Senior Marketing & Communications Specialist Profound Medical Corp. rvongoetz@profoundmedical.com T: 647-476-1350, Ext. 426 C: 416.917.8650
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