Trading Symbol: AAF:TSX Venture Exchange
EDMONTON, June 29 /CNW/ - Altachem Pharma Ltd. ("Altachem" or the
"Company") announces a summary of its financial results and highlights for the
three month period ended April 30, 2005.
Highlights of Q1, fiscal 2006 and subsequent events
- Net consolidated loss for the three month period ended April 30, 2005
was $814,670 or $0.02 per share as compared to a consolidated loss of
$1,003,806 or $0.03 per share for the three month period ended
April 30, 2004.
- Announced a major change in strategic direction for the Company,
involving a concentration of resources on developing the Company's
anti-cancer photodynamic therapies.
- Appointed Dr. David Cox, a biotechnology industry veteran as President
& CEO
- Raised approximately $2.7 million from a combination of equity,
debenture, debt financing and government support programs.
- Executed a strategic research agreement with the Kunming Institute in
China regarding the supply of key pharmaceutical ingredients.
- Received approval from the Australian Patent Office for the Company's
sonodynamic technology.
- Received a $110,000 award from Alberta Ingenuity Fund to help support
the Company's program in Prostate Cancer.
"I am very satisfied with the Company's progress thus far in fiscal 2006"
remarked Dr. David Cox, President & CEO. "We have been able to re-position the
Company as a focused development company in the cancer space and also have
managed to stabilize Altachem financially and corporately. Based on current
operating budgets and assuming that we are able to repatriate and liquidate
assets from Altachem's Chinese subsidiaries, we believe that the capital
resources of the Company should be sufficient to fund operations into 2006,
including the completion of a Phase I clinical trial for HB-topical in the
treatment of Actinic Keratoses"
Financial Results
Net consolidated loss for the three month period ended April 30, 2005 was
$814,670 or $0.02 per share as compared to a consolidated loss of $1,003,806
or $0.03 per share for the three month period ended April 30, 2004.
Research and development expenditures totaled $375,743 for the three
month period ended April 30, 2005 compared to $615,288 for the three month
period ended April 30, 2004. The decrease relates to the Company's focus on
its core drug development technologies. General and administrative expenses
were $392,396 for the three month period ended April 30, 2005 compared to
$658,680 for the same period in 2004. The decrease here relates to a
streamlining of the Company's operations.
The Company generates revenue from three sources: contract manufacturing
of diagnostic test kits, sales of Accu-MAb(TM) a whooping cough diagnostic
test kit, and sales of pharmaceutical pellet core. On July 30, 2004 the
Company sold its assets relating to the contract manufacturing operations in
Edmonton, Alberta. Contract manufacturing revenue was $nil for the three month
period ended April 30, 2005 compared to $179,948 for the three month period
ended April 30, 2004. Pellet core sales were $18,282 for the three month
period ended April 30, 2005 compared to $23,180 for the three month period
ended April 30, 2004. Sales of Accu-MAb(TM) were $48,221 for the three month
period ended April 30, 2005 compared to $43,672 for the three month period
ended April 30, 2004. The Company is looking to further expand sales of
Accu-MAb(TM) in Canada, the United States and to other countries.
At April 30, 2005, cash and cash equivalents was $1,919,913 as compared
to $1,931,293 at January 31, 2005. Although the majority of Company's cash
balance at year end is held by its Chinese subsidiary Shanghai Altachem Pharma
Biotechnology Ltd. ("SACP"), the Company is taking steps to collapse SACP and
repatriate SACP's assets back to Canada. This process is expected to be
completed during the 3rd quarter of calendar 2005.
During the three month period ended April 30, 2005, the Company obtained
additional bridge financing of $75,000 in the form of an interest bearing loan
from a director. Also in the period, the Company repaid approximately
$0.3 million of its bridge financing. Subsequent to April 30, 2005, the
Company made further bridge financings repayments such that, at the time of
this press release, $225,000 of bridge financing remains outstanding. The
Company intends to repay this obligation during Q3 of fiscal 2006.
In March, 2005, the Company raised $1,000,000 through a private placement
issue of 8% convertible debentures with a one year maturity to two arm's
length parties. The Debentures may be converted into common shares of the
Company.
Between March and May, 2005, the Company completed a private placement of
units for gross proceeds of $1,493,000 (net proceeds of approximately
$1,432,000). Each unit is comprised of one common share and one-half share
purchase warrant.
The Company has been awarded a grant from Alberta Ingenuity Fund to cover
salary expenditures related to the development of the Company's photodynamic
therapy for prostate cancer. The $55,000 grant is to be paid over a twelve
month period commencing in May, 2005.
Additional information related to the Company, including the Company's
financial statements, and management discussion and analysis, is on SEDAR at
www.sedar.com.
Risks and Uncertainties
Certain of the statements contained in this press release are forward-
looking statements which involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements
of Altachem Pharma Ltd or industry results, to be materially different from
any future results, performance or achievements expressed or implied by such
forward-looking statements.
To the extent possible, management implements strategies to reduce or
mitigate the risks and uncertainties associated with the Company's operations.
Operating risks include (i) the continued availability of capital to finance
the Company's activities; (ii) the Company's limited cash position, (iii) the
ability to successfully obtain proof of the effectiveness of the Company's
technology (iv) the ability to complete and maintain corporate alliances
relating to the development and commercialization of the Company's technology;
(v) the ability to obtain and enforce patent and other intellectual property
protection for the Company's technology; (vi) market acceptance of the
Company's technology; (vii) the competitive environment and impact of
technological change; (viii) the Company's ability to attract and retain
employees to carry out its business plans and (ix) the timely development and
commercialization of any technology or products that are contingent on the
completion and maintenance of corporate alliances with third parties. Further
details on Altachem's operating risks can be found in the Company's quarterly
and annual financial statements.
The Corporation is a publicly traded (TSX Venture Exchange: AAF), Alberta-
based pharmaceutical company committed to the development and
commercialization of new pharmaceutical products. It is developing a series of
products for the treatment of cancer and other proliferative diseases based on
its SonoLight and CDK platforms. It also has a profitable product in
Accu-MAb(TM), a monoclonal-based diagnostic kit for whooping cough.
"TSX Venture Exchange has neither approved nor disapproved of the
information contained herein."
%SEDAR: 00008400E
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