Medwell Capital Reports 2012 Year-End Results

EDMONTON, March 28, 2013 /CNW/ - Medwell Capital Corp. (TSX-V: MWC) today announced financial and operational results for the year ended December 31, 2012.

Financial Highlights:

• 4^th Quarter
• Net loss from continuing operations of $0.4 million, before reorganization fees, and unrealized investment losses of $0.8 million
• Completed a $4.3 million private placement and reorganization, with 20:1 consolidation of the stock
• Year End
• Net loss from continuing operations of $2.5 million, before reorganization fees, and unrealized investment losses of $1.7 million
• Unrealized losses were largely due to a lower stock price of Spectral Diagnostics and a $0.7 million write down in the value of Spectral warrants due to expire on March 2, 2014

"We are pleased that past reorganization efforts resulted in a substantial reduction in losses for the past year, and to have strengthened the balance sheet with our recent private placement." said Kevin Giese, President and CEO of Medwell. "While our healthcare investments continue to make good progress operationally, our financial results for the year were negatively impacted by the unrealized loss in the value of the Spectral investment."

Operational Highlights:

The following are highlights of Medwell`s healthcare investments:

• Novation Pharmaceuticals Inc.
• Subsequent to the year end Novation entered into an agreement with a pharmaceutical company for the screening of certain targets with Novation`s proprietary Quest technology. Medwell invested $250,000 in Novation by way of convertible debenture, and potential repayment terms or a conversion are in discussion.
• Mimetogen Pharmaceuticals Inc.
• With good results from its Phase 2 clinical trial in dry eye patients released last year, Mimetogen expects to initiate a late stage pivotal trial in the Fall of 2013. Medwell participated in a convertible loan financing arrangement subsequent to the year end, with an initial advancement of $200,000.
• Spectral Diagnostics Inc.
• Subsequent to the year end Spectral announced that there were no safety issues arising from the first interim analysis in the EUPHRATES clinical trial for patients with severe sepsis. Spectral is targeting a second interim analysis in the first half of 2014, and completion of full patient enrolment by the end of 2014.
• Medwell's clinical, regulatory and capital marketing services contract with Spectral in the amount of $1.5 million per annum was amended in August of 2012 to one whereby Medwell was to provide strategic planning and public relations services in the reduced amount of $400,000 annually until December 31, 2013, unless terminated early. Subsequent to the year end and in keeping with a more limited investor relations program, Spectral provided notice of early termination. The contract ends as of May 15, 2013, with remaining monthly plus termination fees of approximately $192,000 to be paid to Medwell LP.

Financial Results:

The consolidated net loss from continuing operations of the Corporation for the three months ended December 31, 2012 was $1.5 million or $0.19 per share compared with a consolidated net loss from continuing operations of $0.9 million or $0.20 per share for the same period in the previous year. The net loss for the past quarter was $0.4 million before reorganization professional fees, and before an unrealized loss on investments of $0.8 million.

The consolidated net loss from continuing operations of the Corporation for the year ended December 31, 2012 was $4.6 million or $0.89 per share compared with a consolidated net loss from continuing operations of $11.0 million or $2.43 per share for the same period in the previous year. The net loss for the past year was $2.5 million before reorganization professional fees, and before an unrealized loss on investments of $1.7 million which was largely attributable to a decrease in the value of the Spectral investment.

At December 31, 2012 cash and cash equivalents, restricted cash and short-term investments totaled $7.9 million as compared to $6.5 million at December 31, 2011.  At December 31, 2012 the Corporation had working capital of $7.4 million as compared to $6.3 million at December 31, 2011.  The Corporation has sufficient working capital to meet its obligations as they come due.

As at December 31, 2012 there were 7,270,071 common shares of the Company issued and outstanding.

For complete financial results, please see our filings at www.sedar.com or on our website at www.medwellcapital.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.

SOURCE: Medwell Capital Corp.

Tony Hesby
Medwell Capital Corp.
780-413-7152
780-408-3040 Fax
E-mail: [email protected]
Internet: http://www.medwellcapital.com

Ross Marshall
Investor Relations
TMX Equicom
416-815-0700 ext. 238
416-815-0080 Fax
E-mail:[email protected]