MONTREAL, QUEBEC–(Marketwired – May 28, 2014) – Knight Therapeutics Inc. (“Knight”) (TSX:GUD) today reported its financial results for the quarter ended March 31, 2014.
1st Quarter 2014 Highlights
- Listed on TSX-V on February 28, 2014 and began trading on TSX-V under the ticker symbol GUD.V on March 3, 2014.
- Entered into and completed a private placement for a total of $75 million in gross proceeds. Knight issued 21,428,580 special warrants (the “Special Warrants”) at a price of $3.50 per Special Warrant for aggregate gross proceeds to Knight of $75 million. 3487911 Canada Inc., an entity controlled by the company's President and Chief Executive Officer, purchased 6,052,739 Special Warrants under the offering for approximately $21 million.
- Received U.S. FDA approval for Impavido®(miltefosine) for the treatment of Visceral, Mucosal and Cutaneous Leishmaniasis.
- In conjunction with receiving U.S. FDA approval, Knight was awarded a Priority Review Voucher which entitles the bearer to a priority review for any product and may be sold.
Subsequent to the Quarter
- Entered into and completed a second private placement for total of $180 million in gross proceeds. Knight issued 34,300,000 additional special warrants at a price of $5.25 with substantially the same terms as the Special Warrants for a total of $180 million in gross proceeds. 3487911 Canada Inc. purchased 7,620,000 of the 34,300,000 additional special warrants.
- Entered into an arrangement on April 14, 2014 with Medicure, a specialty pharmaceutical company, under which Knight will provide advisory services to help advance Medicure's U.S. specialty pharmaceutical business.
- Began trading on Toronto Stock Exchange on April 29, 2014 under the ticker symbol GUD and de-listed from TSX Venture Exchange.
- Announced On May 1, 2014 that the company had engaged Genesys Capital Management Inc. to assist Knight with its business development efforts. The mandate included lending money on a secured basis to emerging biotechnology and specialty pharmaceutical companies in order to gain access to innovative products for the Canadian market.
- Effective today, Mark A. Beaudet has resigned from the Knight Board of Directors. The company would like to thank Mr. Beaudet for his contributions to Knight. The Board intends to replace Mr. Beaudet with a new director.
First Quarter 2014 Financial Results Reported in Canadian Dollars
The company's financial statements for the period ended March 31, 2014 have been prepared in accordance with IAS 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (IASB).
The company reported quarterly Revenues of $1,441, a Net Loss of $75,742, $75,449,376 of cash and 22,036,060 common shares outstanding as at March 31, 2014.
“Knight won't rest until it is at least as successful as Paladin. Now that we are well capitalized, we can focus on strategy execution” said Jonathan Ross Goodman, President and CEO of Knight Therapeutics Inc.
Conference Call Notice
Knight will host a conference call to discuss its first quarter results today at 10:00 am ET. Investors and other interested parties may call 877-223-4471 (Operator Assisted Toll-Free) or 647-788-4922 (local or international).
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and world markets. For more information about Knight Therapeutics Inc., please visit the company's website at www.gud-knight.com or at www.sedar.com.
This press release may contain forward-looking statements and predictions. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the company's final application for listing on the TSX Venture Exchange and in two short form prospectuses which can be found on SEDAR at www.sedar.com, which investors should consult for additional information. The company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events and except as required by law.
Neither TSX nor its Regulation Services Providers (as that term is defined in policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
Knight Therapeutics Inc.
| INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS |
| As at |
| [In Canadian dollars] |
| [unaudited] |
| March 31, 2014 | December 31, 2013 | ||
| $ | $ | ||
| ASSETS | |||
| Current assets | |||
| Cash | 75,449,376 | 1 | |
| Interest and royalties receivable | 42,425 | – | |
| Other current assets | 52,711 | – | |
| Total current assets | 75,544,512 | 1 | |
| Property and equipment | 35,489 | – | |
| Intangible assets | 902,671 | – | |
| Intangible asset held for sale | 10,000,000 | – | |
| Total assets | 86,482,672 | 1 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Current liabilities | |||
| Accounts payable and accruals | 471,134 | – | |
| Interest payable to related party | 18,699 | – | |
| Loan payable to related party | 2,500,000 | – | |
| Total current liabilities | 2,989,833 | – | |
| Shareholders' equity | |||
| Share capital | 11,909,001 | 1 | |
| Warrants | 71,167,703 | – | |
| Contributed Surplus | 491,877 | – | |
| Deficit | (75,742 | ) | – |
| Total shareholders' equity | 83,492,839 | 1 | |
| Total liabilities and shareholders' equity | 86,482,672 | 1 |
| INTERIM CONDENSED CONSOLIDATED STATEMENT OF LOSS AND COMPREHENSIVE LOSS |
| For the three months ended March 31, 2014 |
| [In Canadian dollars except for share and per share amounts] |
| [unaudited] |
| $ | ||
| REVENUE | ||
| Royalty income | 1,441 | |
| EXPENSES | ||
| General and administrative | 77,272 | |
| Research and development | 15,037 | |
| Loss before depreciation, amortization and interest | (90,868 | ) |
| Depreciation of property and equipment | 493 | |
| Amortization of intangible assets | 6,324 | |
| Interest expense | 19,040 | |
| Interest income | (40,983 | ) |
| Loss before income tax | (75,742 | ) |
| Provision for income taxes | – | |
| Net loss and comprehensive loss for the period | (75,742 | ) |
| Basic and diluted net loss per share | (0.01 | ) |
| Weighted average number of common shares outstanding | 8,079,889 | |
| INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY |
| For the three months ended March 31, 2014 |
| [In Canadian dollars] |
| [unaudited] |
| Share capital |
Warrants | Contributed Surplus | Deficit | Total Shareholders' Equity | ||||
| $ | $ | $ | $ | $ | ||||
| Balance on Incorporation and as at January 1, 2014 | 1 | – | – | – | 1 | |||
| Net loss and comprehensive loss for the period | – | – | – | (75,742 | ) | (75,742 | ) | |
| Issuance of common shares as part of Business Separation Agreement | 11,909,000 | – | – | – | 11,909,000 | |||
| Issuance of warrants, net of costs | – | 71,617,703 | 491,877 | – | 72,109,580 | |||
| Warrant purchase loans | – | (450,000 | ) | – | – | (450,000 | ) | |
| Balance as at March 31, 2014 | 11,909,001 | 71,167,703 | 491,877 | (75,742 | ) | 83,492,839 | ||
| INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
| For the three months ended March 31, 2014 |
| [In Canadian dollars] |
| [unaudited] |
| $ | ||
| OPERATING ACTIVITIES | ||
| Net loss | (75,742 | ) |
| Depreciation of property and equipment | 493 | |
| Amortization of intangible assets | 6,324 | |
| Changes in non-cash working capital related to operations | 43,157 | |
| Cash outflow from operating activities | (25,768 | ) |
| INVESTING ACTIVITIES | ||
| Purchase of property and equipment | (35,982 | ) |
| Cash outflow from investing activities | (35,982 | ) |
| FINANCING ACTIVITIES | ||
| Net impact of Business Separation Agreement | 1,000,000 | |
| Net proceeds from warrants issuance | 72,461,125 | |
| Warrant purchase loans | (450,000 | ) |
| Loan from related party | 2,500,000 | |
| Cash inflow from financing activities | 75,511,125 | |
| Increase in cash during the period | 75,449,375 | |
| Cash, beginning of period | 1 | |
| Cash, end of period | 75,449,376 |