Medwell Capital Announces Second Quarter 2010 Results
Toronto Stock Exchange Symbol: MWC
EDMONTON, Aug. 12 /CNW/ - Medwell Capital Corp. (TSX: MWC), today announced financial and operational results for the three and six months ended June 30, 2010.
Highlights for the quarter:
- Medwell Capital Corp. announced its new name and its strategy to
become a leading service provider to the healthcare industry. Medwell
Capital will directly invest in and advise companies on strategy,
financing, mergers & acquisitions (M&A), licensing transactions and
undertake technology development. Medwell Capital trades on the
Toronto Stock Exchange under the symbol "MWC".
- Appointed Mr. Nitin Kaushal, a leading healthcare investment banker,
to implement the Company's new strategy. Mr. Kaushal brings more than
25 years of financial and investment experience to Medwell Capital
and will serve as its Executive Vice President and Managing Director.
Novation Pharmaceuticals Inc.
Medwell Capital also announced that on June 11, 2010 it purchased a convertible debenture in Novation Pharmaceuticals Inc. ("Novation"), a private company, in the amount of $250,000. The debenture matures on June 10, 2012 and carries a 6% interest rate. Novation focuses on discovering and developing small-molecule therapeutics that modulate messenger RNA ("mRNA") to treat a broad range of diseases. Novation scientists discovered that it is possible to modulate the stability of mRNA with orally available small molecules, an observation that led directly to the development of their proprietary drug discovery technology, called Quest.
Financial Results:
Medwell Capital is reporting results from both continuing and discontinued operations. Continuing operations consist of activities related Medwell Capital as an investment and advisory service provider to the healthcare industry. Medwell Capital's discontinued operations relate to the late stage clinical development program for dirucotide, a drug for the treatment of multiple sclerosis.
The consolidated net loss from continuing operations of the Corporation for the three months ended June 30, 2010 was $9.5 million or $0.10 per share compared with a consolidated net loss from continuing operations of $2.5 million or $0.03 per share for the same period in the previous year. The consolidated net loss from continuing operations of the Corporation for the six months ended June 30, 2010 was $3.0 million or $0.03 per share compared with a consolidated net loss from continuing operations of $6.2 million or $0.07 per share for the same period in the previous year.
Revenue earned from the services agreement initiated with Spectral during the quarter amounted to $0.25 million for the three months ended June 30, 2010. Interest income earned on funds invested was $0.1 million for the three months ended June 30, 2010, compared to $0.1 million for the same period in the previous year. Revenue earned from the services agreement with Spectral amounted to $0.5 million for the first six months of June 30, 2010. Interest income earned on funds invested was $0.1 million for the first six months of June 30, 2010, compared to $0.3 million for the same period in the previous year, due to the decrease in cash and cash equivalents and levels of current prevailing interest rates.
Total consolidated expenses from continuing operations for the three months ended June 30, 2010 were $2.8 million as compared with $2.6 million in the three months ended June 30, 2009. Total consolidated expenses from continuing operations for the six months ended June 30, 2010 were $5.2 million as compared with $6.5 million in the six months ended June 30, 2009.
The consolidated net income from discontinued operations for the three months ended June 30, 2010 was $0.6 million or $0.01 per share compared with a consolidated net income from discontinued operations of $4.0 million or $0.04 per share for the same period in the previous year. Consolidated net loss from discontinued operations for the first six months of 2010 was $0.4 million or $0.01 per share compared with a consolidated net income from discontinued operations of $6.3 million or $0.07 per share for the same period in the previous year. Upon the conclusion of the MAESTRO-01 clinical trial the Company discontinued the other dirucotide clinical trials, MAESTRO-02 and MAESTRO-03, and completed final collection of data and records.
At June 30, 2010, cash and cash equivalents and short-term investments totaled $31.8 million as compared to $51.4 million at December 31, 2009. At June 30, 2010, the Company had working capital of $32.3 million as compared to $47.5 million at December 31, 2009. Management estimates that the current working capital is sufficient for the Company to meet its obligations.
As at June 30, 2010 there were 91,008,923 Class "A" common shares of the Company issued and outstanding.
About Medwell Capital Corp.
---------------------------
Medwell Capital Corp. is a Canadian-based service provider in the healthcare industry. For further information please visit www.medwellcapital.com.
This press release may contain forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, 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 Corporation's ongoing quarterly and annual reporting. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Medwell Capital Corp.
(formerly BioMS Medical Corp.)
Interim Consolidated Balance Sheet
(Unaudited)
-------------------------------------------------------------------------
June 30, December 31,
2010 2009
$ $
(Unaudited)
Assets
Current assets
Cash and cash equivalents 29,054 48,774
Short-term investments 2,668 2,662
Accounts receivable 190 -
Goods and services tax recoverable 48 37
Other prepaid expenses 300 79
Investments 14,084 -
Assets of discontinued operation 400 771
------------- ------------
46,744 52,323
Property and equipment 281 350
------------- ------------
47,025 52,673
------------- ------------
------------- ------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 159 358
Liabilities of discontinued operation 226 4,464
------------- ------------
385 4,822
------------- ------------
Share capital 175,714 175,714
Contributed surplus 12,319 10,937
Accumulated deficit (141,393) (138,800)
------------- ------------
46,640 47,851
------------- ------------
47,025 52,673
------------- ------------
------------- ------------
Medwell Capital Corp.
(formerly BioMS Medical Corp.)
Interim Consolidated Statement of Operations and Comprehensive Income
(Loss)
(Unaudited)
-------------------------------------------------------------------------
Six-month period Three-month period
ended June 30, ended June 30,
2010 2009 2010 2009
$ $ $ $
--------------------- ---------------------
Revenue
Unrealized gain (loss) on
investments 1,580 - (6,980) -
Contract services 500 - 250 -
Interest 85 266 53 96
--------------------- ---------------------
2,165 266 (6,677) 96
--------------------- ---------------------
Expenses
Operating, general and
administrative 3,782 4,313 2,081 2,239
Stock-based compensation 1,382 1,845 950 -
Amortization of property
and equipment 75 85 37 42
Foreign exchange (gain) loss (73) 267 (238) 281
--------------------- ---------------------
5,166 6,510 2,834 2,562
--------------------- ---------------------
Net (loss) from continuing
operations (3,001) (6,244) (9,507) (2,466)
Net income from discontinued
operation 408 6,349 631 3,970
Net (loss) income and
comprehensive (loss) income (2,593) 105 (8,876) 1,504
--------------------- ---------------------
--------------------- ---------------------
Basic and diluted net loss
per common share -
continuing operations (0.03) (0.07) (0.10) (0.03)
Basic and diluted net
income per common share -
discontinued operation 0.01 0.07 0.01 0.04
Basic and diluted net (loss)
income per common share (0.03) 0.01 (0.10) 0.02
Basic weighted average number
of common shares outstanding 91,009 91,009 91,009 91,009
Diluted weighted average
number of common shares
outstanding 91,009 91,563 91,009 91,356
Medwell Capital Corp.
(formerly BioMS Medical Corp.)
Interim Consolidated Statement of Cash Flows
(Unaudited)
-------------------------------------------------------------------------
Six-month period Three-month period
ended June 30, ended June 30,
2010 2009 2010 2009
$ $ $ $
--------------------- ---------------------
Cash provided by (used in)
Operating activities
Net income (loss) (2,593) 105 (8,876) 1,504
Items not involving cash
Unrealized (gain) loss
on investments (1,580) - 6,980 -
Stock-based compensation 1,382 1,845 950 -
Amortization of property
and equipment 75 85 37 42
--------------------- ---------------------
(2,716) 2,035 (909) 1,546
Net change in non-cash
working capital items (871) (1,713) (433) (1,495)
--------------------- ---------------------
(3,587) 322 (1,342) 51
--------------------- ---------------------
Investing activities
Purchase of investments (12,504) - (504) -
Net purchase of short-term
investments (6) (38) (3) (19)
Purchase of property and
equipment (6) (7) (4) (6)
--------------------- ---------------------
(12,516) (45) (511) (25)
--------------------- ---------------------
Foreign exchange gain on
cash and cash equivalents
held in foreign currency 250 1,550 70 1,381
--------------------- ---------------------
Cash (used in) provided by
continuing operations (15,853) 1,827 (1,783) 1,407
Cash used in discontinued
operation (3,867) (24,789) (1,173) (12,272)
--------------------- ---------------------
Decrease in cash and cash
equivalents (19,720) (22,962) (2,956) (10,865)
--------------------- ---------------------
Cash and cash equivalents
- Beginning of period 48,774 87,826 32,010 75,729
--------------------- ---------------------
Cash and cash equivalents
- End of period 29,118 64,864 29,054 64,864
--------------------- ---------------------
--------------------- ---------------------
Cash and cash equivalents
consists of
Bank accounts 1,256 1,282 1,256 1,282
Interest bearing deposits
and securities 27,798 63,582 27,798 63,582
--------------------- ---------------------
29,054 64,864 29,054 64,864
--------------------- ---------------------
--------------------- ---------------------
For further information: Tony Hesby, Ryan Giese, Medwell Capital Corp., 780-413-7152, 780-408-3040 Fax, E-mail: [email protected]; James Smith, Investor Relations, 416-815-0700 ext. 229, 416-815-0080 Fax, E-mail: [email protected]
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