Medwell Capital Reports 2012 Third Quarter Results

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 30^th, 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)
(expressed in thousands of Canadian dollars)
		September 30, 2012 $		December 31, 2011 $
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,
		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]