Bioniche Reports Fiscal 2009 Year-End Results
- revenues increase by 21% over Fiscal 2008, to $33.3 million -
(all figures are in Canadian dollars unless otherwise noted)
BELLEVILLE, ON,
"We had a very successful year in terms of revenues generated by our base Animal Health business, experiencing 21% growth in a challenging global economy," said Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. "In addition, subsequent to the end of the fiscal year, we announced a transformative corporate event: The signing of a licensing agreement with Endo Pharmaceuticals Inc. for exclusive rights to develop and market UrocidinTM in the U.S. with an option for global rights."
Urocidin is a patented formulation of Mycobacterial Cell Wall-DNA Complex (MCC) developed by Bioniche for the treatment of non-muscle-invasive bladder cancer that is currently undergoing Phase III clinical testing.
Subsequent to the year-end, the Company received an up-front payment of US$20 million from Endo and executed a series of transactions improving its capital structure. At present, the Company reports that its unaudited cash position, inclusive of restricted cash, at the end of August, 2009, was
Fiscal 2009 Financial Results Highlights
Consolidated revenues for the fiscal year increased by 21% to
For the year ended
Gross research and development (R&D) expenses decreased by
The basic and fully-diluted net loss per share for Fiscal 2009 was (
Earnings before interest, taxes, depreciation, amortization and foreign exchange were
At yesterday's meeting of the Bioniche Life Sciences Inc. Board of Directors,
The Company also welcomes a new Chief Financial Officer:
About Bioniche Life Sciences Inc.
Bioniche Life Sciences Inc. is a research-based, technology-driven Canadian biopharmaceutical company focused on the discovery, development, manufacturing, and marketing of proprietary products for human and animal health markets worldwide. The fully-integrated company employs approximately 200 skilled personnel and has three operating divisions: Human Health, Animal Health, and Food Safety. The Company's primary goal is to develop proprietary cancer therapies supported by revenues from marketed products in human and animal health. Bioniche has been named one of the Top 50 Best Small and Medium-Sized Employers in
Except for historical information, this news release may contain forward-looking statements that reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process, and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.
Bioniche Life Sciences Inc.
Amalgamated under the laws of Ontario
CONSOLIDATED BALANCE SHEETS
(see going concern uncertainty)
As at June 30
2009 2008
$ $
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ASSETS
Current
Cash and cash equivalents 5,949,617 4,399,065
Accounts receivable 3,720,123 6,443,299
Inventories 5,407,624 4,738,765
Prepaid expenses and deposits 569,605 640,326
Restricted cash 1,227,374 -
Foreign currency embedded derivatives - 59,693
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16,874,343 16,281,148
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Long-term
Property, plant and equipment 9,494,013 9,718,157
Intangible assets 6,791,777 7,688,698
Goodwill 456,155 456,155
Long-term accounts receivable 1,025,152 478,852
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34,641,440 34,623,010
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Revolving credit facility 4,447,836 2,593,059
Accounts payable and accrued liabilities 11,607,217 8,341,398
Income and other taxes payable 321,166 104,592
Deferred government assistance 342,269 -
Current portion of long-term debt and
obligations under capital leases 634,427 458,713
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17,352,915 11,497,762
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Long-term
Long-term debt 1,148,706 1,673,853
Obligations under capital leases 1,224,767 1,424,029
Government assistance loans 2,475,975 -
Deferred government incentives 3,335,548 3,606,926
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25,537,911 18,202,570
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Shareholders' equity
Share capital 95,855,503 92,941,966
Special warrants - 2,174,008
Other paid-in capital 8,539,529 6,056,115
Deficit (95,291,503) (84,751,649)
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9,103,529 16,420,440
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34,641,440 34,623,010
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Commitments and contingencies
Bioniche Life Sciences Inc.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(see going concern uncertainty)
Preferred shares -
Common shares Series I
No. $ No. $
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Balance, June 30,
2007 61,711,867 81,078,737 167 161,000
Transition adjustment - - - -
Net loss for the year - - - -
Issued under employee
share ownership plan 808,291 638,500 - -
Fair value of stock
options vested - - - -
Directors'
remuneration 73,560 76,502 - -
Share bonus 516,886 408,340 - -
Warrants issued in
connection with the
revolving credit
facility - - - -
Revolving credit
facility principal
payments made in
shares 2,671,900 1,780,100 - -
Warrants issued to a
consultant - - - -
Adjustment for
conversion of
fractional shares 6 - - -
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Balance, June 30,
2008 65,782,510 83,982,179 167 161,000
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Other
Preferred shares - Special paid-in
Series II warrants capital
No. $ $ $
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Balance, June 30,
2007 9,000,000 8,798,787 2,174,008 5,528,059
Transition adjustment - - - -
Net loss for the year - - - -
Issued under employee
share ownership plan - - - -
Fair value of stock
options vested - - - 388,731
Directors'
remuneration - - - -
Share bonus - - - -
Warrants issued in
connection with the
revolving credit
facility - - - 112,000
Revolving credit
facility principal
payments made in
shares - - - -
Warrants issued to a
consultant - - - 27,325
Adjustment for
conversion of
fractional shares - - - -
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Balance, June 30,
2008 9,000,000 8,798,787 2,174,008 6,056,115
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Deficit Total
$ $
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Balance, June 30,
2007 (68,630,615) 29,109,976
Transition adjustment 134,674 134,674
Net loss for the year(16,255,708) (16,255,708)
Issued under employee
share ownership plan - 638,500
Fair value of stock
options vested - 388,731
Directors'
remuneration - 76,502
Share bonus - 408,340
Warrants issued in
connection with the
revolving credit
facility - 112,000
Revolving credit
facility principal
payments made in
shares - 1,780,100
Warrants issued to a
consultant - 27,325
Adjustment for
conversion of
fractional shares - -
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Balance, June 30,
2008 (84,751,649) 16,420,440
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Bioniche Life Sciences Inc.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (CONT'D)
(see going concern uncertainty)
Preferred shares -
Common shares Series I
No. $ No. $
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Balance, June 30,
2008 65,782,510 83,982,179 167 161,000
Transition adjustment - - - -
Net loss for the year - - - -
Issued under employee
share ownership plan 1,171,916 593,447 - -
Fair value of stock
options vested - - - -
Directors'
remuneration 161,672 113,170 - -
Warrants issued in
connection with the
revolving credit
facility - - - -
Revolving credit
facility principal
payments made in
shares 4,565,049 1,966,920 - -
Special warrants
expired - - - -
Options issued to a
consultant - - - -
Write-off of employee
share purchase loan - 240,000 - -
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Balance, June 30,
2009 71,681,147 86,895,716 167 161,000
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Other
Preferred shares - Special paid-in
Series II warrants capital
No. $ $ $
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Balance, June 30,
2008 9,000,000 8,798,787 2,174,008 6,056,115
Transition adjustment - - - -
Net loss for the year - - - -
Issued under employee
share ownership plan - - - -
Fair value of stock
options vested - - - 247,391
Directors'
remuneration - - - -
Warrants issued in
connection with the
revolving credit
facility - - - 61,315
Revolving credit
facility principal
payments made in
shares - - - -
Special warrants
expired - - (2,174,008) 2,174,008
Options issued to a
consultant - - - 700
Write-off of employee
share purchase loan - - - -
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Balance, June 30,
2009 9,000,000 8,798,787 - 8,539,529
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Deficit Total
$ $
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Balance, June 30,
2008 (84,751,649) 16,420,440
Transition adjustment (39,350) (39,350)
Net loss for the year (10,500,504) (10,500,504)
Issued under employee
share ownership plan - 593,447
Fair value of stock
options vested - 247,391
Directors'
remuneration - 113,170
Warrants issued in
connection with the
revolving credit
facility - 61,315
Revolving credit
facility principal
payments made in
shares - 1,966,920
Special warrants
expired - -
Options issued to a
consultant - 700
Write-off of employee
share purchase loan - 240,000
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Balance, June 30,
2009 (95,291,503) 9,103,529
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Bioniche Life Sciences Inc.
CONSOLIDATED STATEMENTS OF LOSS AND
COMPREHENSIVE LOSS
(see going concern uncertainty)
Years ended June 30
2009 2008
$ $
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REVENUE
Sales 33,281,029 27,468,085
Cost of sales (excluding amortization) 14,431,868 12,695,925
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Gross profit 18,849,161 14,772,160
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EXPENSES
Administration 6,108,984 6,710,565
Marketing and selling 6,096,518 6,703,929
Other expenses 863,257 -
Interest on long-term debt 323,645 203,210
Other interest, net 357,776 (1,450)
Accreted interest on discounted receivables
and interest free loans (3,995) (13,819)
Amortization of property, plant and equipment 1,342,918 1,202,328
Amortization and write-down of intangible
assets 896,921 856,517
Amortization of financial expenses 1,787,104 767,921
Foreign exchange loss (gain) (250,876) 232,822
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17,522,252 16,662,023
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Income (loss) before research and development
expenses and other items 1,326,909 (1,889,863)
Research and development expenses, gross 13,314,889 15,972,660
Less: government incentives, net (1,861,730) (1,918,380)
Change in unrealized loss on foreign currency
embedded derivatives 59,693 126,988
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Loss before income taxes (10,185,943) (16,071,131)
Provision for income taxes 314,561 184,577
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Net loss and comprehensive loss for the year (10,500,504) (16,255,708)
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Basic and fully diluted net loss per share (0.15) (0.26)
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Weighted average number of common shares
outstanding 70,313,509 63,104,876
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Bioniche Life Sciences Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(see going concern uncertainty - note 1)
Years ended June 30
2009 2008
$ $
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OPERATING ACTIVITIES
Net loss for the year (10,500,504) (16,255,708)
Add (deduct) non cash items:
Amortization 3,926,943 2,826,766
Amortization of deferred government incentives
(note 11) (311,266) -
Change in unrealized loss on foreign currency
embedded derivatives 59,693 126,988
Accreted interest on discounted receivables
and interest-free loans (3,995) (13,819)
Write-off of intangible assets 100,000 -
Unrealized foreign exchange loss (gain) 184,798 (34,680)
Deemed government assistance (283,734) -
Stock-based compensation 487,391 388,731
Warrants issued to consultants 700 27,325
Share bonus and shares issued to directors - 544,507
Employee share ownership plan 532,827 684,556
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(5,807,147) (11,705,334)
Increase in restricted cash (1,227,374) -
Net change in non-cash working capital balances
(note 20) 4,068,689 62,188
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Cash used in operating activities (2,965,832) (11,643,146)
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INVESTING ACTIVITIES
Proceeds from maturity of short-term investments - 9,500,000
Government incentives received on account of
property, plant and equipment 79,798 4,641
Purchases of property, plant and equipment (1,404,799) (584,573)
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Cash provided by (used in) investing activities (1,325,001) 8,920,068
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FINANCING ACTIVITIES
Proceeds from term note (note 9) - 1,750,000
Proceeds from government assistance (note 11(c)) 3,408,936 -
Payment of financing fees - debt (11,036) (88,010)
Proceeds from deferred government incentives 121,360 49,965
Proceeds from revolving credit facility 31,474,720 26,759,247
Repayment of revolving credit facility (28,447,761) (22,635,316)
Repayment of capital lease obligations (297,771) (217,232)
Repayment of long-term debt (407,063) (20,108)
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Cash provided by financing activities 5,841,385 5,598,546
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Net increase in cash and cash equivalents
during the year 1,550,552 2,875,468
Cash and cash equivalents, beginning of year 4,399,065 1,523,597
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Cash and cash equivalents, end of year 5,949,617 4,399,065
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See accompanying notes
%SEDAR: 00013159E
For further information: Jennifer Shea, Vice-President, Communications, Investor & Government Relations, Bioniche Life Sciences Inc., Telephone: (613) 966-8058, Cell: (613) 391-2097, [email protected]
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