BELLUS Health reports results for the fourth quarter of 2008

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[{"type":"text","content":"\n\n\n\nLAVAL, QC, Feb. 26 /CNW Telbec/ - BELLUS Health Inc. (TSX: BLU) reported\ntoday its results for the fourth quarter ended December 31, 2008, and\ncommented on the status of its efforts to secure additional financing.\n\n\nFinancial Results\n\n\nFor the fourth quarter, the Company reports a net loss of $11,520,000\n($0.23 per share), compared to $16,097,000 ($0.33 per share) for the\ncorresponding period in the previous year. For the year ended December 31,\n2008, the net loss amounted to $48,223,000 ($0.97 per share), compared to\n$81,486,000 ($1.85 per share) for the same period last year. The net loss for\nthe year ended December 31, 2007 included a non-cash accretion expense under\nCanadian GAAP of $10,430,000 relating to the $40 million 5% senior\nsubordinated convertible notes issued in May 2007.\n\n\nAs at December 31, 2008, the Company had available cash, cash equivalents\nand marketable securities of $10,595,000, compared to $58,672,000 at December\n31, 2007.\n\n\nLiquidity and economic environment\n\n\nDuring the past year, capital markets have been characterized by\nsignificant volatility and by a marked reduction in the ability of companies,\nincluding biotechnology companies, to access markets for financing. In light\nof these conditions and given the Company's current cash position and the\nrequirement to secure additional capital by the end of the first quarter of\nfiscal 2009 in order to continue its operations, Bellus Health is continuing\nto actively pursue additional financing.\n\n\nIn this regard, BELLUS Health has received letters from each of FMRC\nFamily Trust, a trust of which Dr. Francesco Bellini is a beneficiary, and\nVictoria Square Ventures Inc., a subsidiary of Power Corporation of Canada,\npursuant to which each has committed to subscribe for securities of BELLUS\nHealth in an amount of up to $10 million ($20 million in the aggregate) or\nsuch lesser amount as is necessary to allow BELLUS Health to operate in\naccordance with its 2009 budget. The commitments expire on March 23, 2009 and\nreplace the commitments of Picchio Pharma Inc. announced by BELLUS Health on\nOctober 21, 2008.\n\n\nThe nature, terms, pricing and security to be granted (if applicable) in\nrespect of such securities will be determined through negotiation between\nBELLUS Health and each of FMRC Family Trust and Victoria Squ...

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