EDMONTON, Nov. 19, 2012 /CNW/ - Medwell Capital Corp. ("Medwell" or the "Company") (TSX-V: MWC) today announced financial and operational results for the third quarter ended September 30, 2012.
Third Quarter Highlights
- Completed a 20:1 share consolidation, for a total 4,550,446 shares outstanding at quarter end
- Subsequent completion of a $4.3 million private placement and reorganization whereby Medwell's healthcare assets were transferred to a wholly owned limited partnership, and Messrs. Michael Salamon and Patrick Barry were appointed to the board of directors of Medwell Capital.
"It's been a very transformative period at Medwell," said Kevin Giese, President and CEO of Medwell. "The quarter saw the loss from continuing operations down significantly as a result of past reorganization efforts, and we recently injected new capital and restructured the Company to better position it to look for future investment opportunities."
Financial Results
The consolidated net loss from continuing operations of the Corporation in 2012 decreased significantly from prior year periods, largely as a result of a decrease in operating expenses that came about through the Corporations' past reorganization efforts:
- For the three months ended September 30, 2012, the loss was $0.5 million ($0.10 per share), down significantly from a loss of $3.6 million ($0.79 per share) for the same period in 2011. The results for the past quarter recognized a gain of $0.2 million on the fair value of the Corporation's investments, and included $0.2 million in extraordinary reorganization related costs. There was a substantial $3.4 million decrease in expenses from continuing operations in 2012 as compared to the same period in 2011.
- For the nine months ended September 30, 2012, the loss was $3.1 million ($0.68 per share), after recognizing a loss of $1.0 million on the fair value of the Corporation's investments. The results represent a significant $10.1 million improvement over the prior year period's loss of $13.2 million ($2.90 per share), again largely as a result of a decrease in operating expenses.
The loss and comprehensive losses in 2012 also decreased significantly from the prior year periods: a loss of $1 million ($0.21 per share) for the three months ended September 30, 2012 as compared to $3.6 million ($0.79 per share) in the prior year period; and a loss of $3.8 million ($0.84 per share) for the nine months ended September 30, 2012 as compared to $13.2 million ($2.90 per share) in the prior year period. The 2012 results included a loss from discontinued operations of $0.5 million ($0.11 per share) and $0.7 million ($0.16 per share) for the three and nine month periods respectively.
At September 30, 2012, cash and cash equivalents and restricted cash totaled $4.1 million. The Corporation's working capital decreased $1.2 million from $3.9 million at year end to $2.7 million at September 30th, of which $0.6 million was used in continuing operations. The Corporation subsequently raised $4.3 million from a private placement. The Corporation currently has sufficient working capital to meet its obligations as they come due.
At November 18, 2012, there were 7,270,071 common shares of the Corporation issued and outstanding.
For complete financial results, please see our filings at www.sedar.com.
About Medwell Capital Corp.
Medwell Capital Corp. is a Canadian-based investment and advisory firm. For further information please visit www.medwellcapital.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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. Interim Condensed Consolidated Statements of Financial Position (Unaudited) |
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(expressed in thousands of Canadian dollars) | |||||
September 30, 2012 $ |
December 31, 2011 $ |
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Assets | |||||
Cash and cash equivalents | 3,162 | 4,339 | |||
Investments | 6,925 | 7,875 | |||
Restricted cash | 917 | 2,210 | |||
Accounts receivable | 269 | 334 | |||
Prepaid expenses | 124 | 149 | |||
Property and equipment | 16 | 23 | |||
11,413 | 14,930 | ||||
Liabilities | |||||
Accounts payable and accrued liabilities | 500 | 424 | |||
Guarantees | |||||
Shareholders' Equity | |||||
Share capital | 162,144 | 162,144 | |||
Contributed surplus | 13,116 | 12,883 | |||
Deficit | (164,347) | (160,521) | |||
10,913 | 14,506 | ||||
11,413 | 14,930 |
Medwell Capital Corp. Interim Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) |
|||||||||
(expressed in thousands of Canadian dollars) | |||||||||
Nine-month period ended September 30, |
Three-month period ended September 30, |
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2012 $ |
2011 $ |
2012 $ |
2011 $ |
||||||
Revenue | |||||||||
Contract services | 913 | 1,302 | 163 | 420 | |||||
Change in fair value of investments | 970 | 6,401 | (196) | 2,178 | |||||
Operating, general and administrative | 2,820 | 7,665 | 820 | 1,780 | |||||
Stock-based compensation | 225 | 645 | - | 326 | |||||
Depreciation of property and equipment | 10 | 31 | 2 | 9 | |||||
Loss on disposal of property and equipment | - | 3 | - | - | |||||
Foreign exchange (gain) loss | 31 | (132) | - | (236) | |||||
Interest earned | (31) | (134) | (13) | (28) | |||||
4,025 | 14,479 | 613 | 4,029 | ||||||
Loss from continuing operations | (3,112) | (13,177) | (450) | (3,609) | |||||
Loss from discontinued operations | (714) | - | (518) | - | |||||
Loss and comprehensive loss | (3,826) | (13,177) | (968) | (3,609) | |||||
Basic and diluted loss per common share - | |||||||||
continuing operations | (0.68) | (2.90) | (0.10) | (0.79) | |||||
Basic and diluted loss per common share - | |||||||||
discontinued operations | (0.16) | - | (0.11) | - | |||||
Basic and diluted net loss per common share | (0.84) | (2.90) | (0.21) | (0.79) | |||||
Basic and diluted weighted average number | |||||||||
of common shares outstanding | 4,550 | 4,550 | 4,550 | 4,550 |
Medwell Capital Corp. Interim Condensed Consolidated Statements of Changes In Equity (Unaudited) |
|||||||||
(expressed in thousands of Canadian dollars) | |||||||||
Share capital $ |
Contributed surplus $ |
Deficit $ |
Total $ |
||||||
Balance, December 31, 2011 | 162,144 | 12,883 | (160,521) | 14,506 | |||||
Net and comprehensive loss for | |||||||||
the period | - | - | (3,826) | (3,826) | |||||
Employee share options: | |||||||||
Value of services recognized | - | 233 | - | 233 | |||||
Balance, September 30, 2012 | 162,144 | 13,116 | (164,347) | 10,913 | |||||
Balance, December 31, 2010 | 175,714 | 12,319 | (148,664) | 39,369 | |||||
Net and comprehensive loss for | |||||||||
the period | - | - | (13,177) | (13,177) | |||||
Distribution of Spectral | |||||||||
Diagnostics Inc. | (13,750) | - | - | (13,570) | |||||
Employee share options: | |||||||||
Value of services recognized | - | 645 | - | 319 | |||||
Balance, September 30, 2011 | 175,714 | 12,964 | (158,232) | 30,120 |
Medwell Capital Corp. Interim Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||
(expressed in thousands of Canadian dollars) | ||||||
Nine-month period ended September 30, | ||||||
2012 $ |
2011 $ |
|||||
Cash provided by (used in) | ||||||
Operating activities | ||||||
Net loss from continuing operations | (3,112) | (13,177) | ||||
(Gain) Loss on sale of investments | - | 4,046 | ||||
Purchase of investments | (20) | (13,741) | ||||
Proceeds from sale of investments | - | 152 | ||||
Proceeds from (purchase of) short-term investments | - | (148) | ||||
Purchase of property and equipment | - | (11) | ||||
Transferred from restricted cash | 1,193 | 532 | ||||
Items not involving cash | ||||||
Unrealized loss on investments | 970 | 2,335 | ||||
Stock-based compensation | 225 | 645 | ||||
Depreciation of property and equipment | 10 | 31 | ||||
Loss on disposal of property and equipment | - | 3 | ||||
Unrealized foreign exchange gain | - | (77) | ||||
(734) | (19,390) | |||||
Net change in non-cash working capital items | 111 | 571 | ||||
(623) | (18,819) | |||||
Foreign exchange loss on cash and cash equivalents held in foreign | ||||||
currency | - | 77 | ||||
Cash used in continuing operations | (623) | (18,742) | ||||
Cash used in discontinued operations | (554) | (747) | ||||
Decrease in cash and cash equivalents | (1,177) | (19,489) | ||||
Cash and cash equivalents - Beginning of period | 4,339 | 24,841 | ||||
Cash and cash equivalents - End of period | 3,162 | 5,352 | ||||
Cash and cash equivalents consists of | ||||||
Bank accounts | 1,339 | 3,176 | ||||
Interest bearing deposits and securities | 1,823 | 2,176 | ||||
3,162 | 5,352 | |||||
Supplemental cash flow information | ||||||
Income taxes paid | $ - | $ - | ||||
Interest paid | - | - | ||||
SOURCE: Medwell Capital Corp.
Tony Hesby
Medwell Capital Corp.
780-413-7152
780-408-3040 Fax
[email protected]
Michael Moore
Investor Relations
TMX Equicom
619-467-7067
[email protected]
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