Zomedica Pharmaceuticals Corp. Announces Third Quarter 2017 Financial Results
ANN ARBOR, Mich., Nov. 09, 2017 (GLOBE NEWSWIRE) -- Zomedica Pharmaceuticals Corp. (TSX-V:ZOM) (“Zomedica” or “Company”), a veterinary pharmaceutical and health care solutions company, today reported condensed unaudited interim consolidated financial results for the three and nine months ended September 30, 2017. Amounts, unless specified otherwise, are expressed in U.S. dollars and presented under International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”).
- On July 10, 2017, Zomedica announced that Bruk Herbst joined the Company as Chief Commercial Officer. Herbst brings more than 20 years of experience, including serving as Executive Senior Vice President of Sales and Marketing at i4C Innovations and Executive Senior Director and Head of U.S. Sales at IDEXX Laboratories.
- On July 28, 2017, Zomedica announced the closing of a non-brokered private placement offering, issuing 1,502,691 common shares at a price of CDN$2.75 for aggregate gross proceeds of approximately CDN$4,132,400 or $3,320,000.
- On August 14, 2017, Zomedica announced that it retained PCG Advisory Group, a leading integrated communications firm, to serve as an advisor for investor relations and social media communications strategies.
- On October 18, 2017, Zomedica announced that it entered into a US$5,000,000 unsecured working capital loan facility.
Summary Third Quarter 2017 Results
Zomedica recorded net loss and comprehensive loss for the three months ended September 30, 2017 of $2,080,682 or $0.02 per share, compared to a loss of $1,042,235 or $0.01 per share for the three months ended September 30, 2016.
For the three months ended September 30, 2017, the loss was attributed to general and administrative (“G&A”) expenses of $1,358,726, research and development (“R&D”) expenses of $465,495 and professional fees of $246,192, with no revenues as Zomedica does not currently have an approved product. For the three months ended September 30, 2016, the loss was attributed to R&D expenses of $411,104, G&A expenses of $396,644, listing expenses of $6,645 and professional fees of $212,684.
G&A expenses for the three months ended September 30, 2017 were $1,350,726, compared to $396,644 for the three months ended September 30, 2016. The increase was primarily due to the ongoing ramping up of business. The majority of these current period expenses related to the addition of personnel, accounting for salaries of $1,136,404 which included share-based compensation expenses of $675,940 primarily as a result of the granting of options to purchase an aggregate of 1,280,000 common shares in August 2017 of which 1,223,750 vested immediately upon the date of grant. In the three months ended September 30, 2016 there was no share-based compensation expense. Other expenses in the current period included travel and accommodation of $49,532 and insurance costs of $48,373. Zomedica expects G&A expenditures in 2017 and future periods to be higher as activity levels increase.
Expenditures for R&D for the three months ended September 30, 2017 were $465,495, compared to $411,104 for the three months ended September 30, 2016. The increase was primarily due to the ramping up of R&D activities related to the hiring of additional full-time employees, product candidates development, and contracted outsourcing activities. The majority of these current period expenses related to contracted outsourced activities of $156,980, salaries of $118,229, and consultant fees of $58,536 relating to an increased level of contracted research lab activities, including in vitro and in vivo work, to support the further development of its product candidates ZM-012, ZM-006, ZM-007 and ZM-011, as well as research testing the feasibility of the liquid biopsy technology for veterinary application as a canine cancer diagnostic.
The Company expects R&D expenditures in 2017 to be significantly higher than in 2016, due to the initiation of pilot and pivotal studies related to its four Investigational New Animal Drug applications, as well as work related to additional veterinary pharmaceutical candidates, diagnostic developments and technologies.
Professional fees for the three months ended September 30, 2017 were $246,192, compared to $219,329 for the three months ended September 30, 2016. The increase was primarily due to expenses in connection with the preparation of the Company’s U.S. registration statement on Form S-1 relating to the resale or other disposition by selling shareholders, and initiating the approval process for listing on the NYSE American exchange.
Liquidity and Outstanding Share Capital
Zomedica had cash of $4,563,264 as of September 30, 2017, compared to $2,649,808 as of June 30, 2017. The increase in cash during the three months ended September 30, 2017 is mainly a result of the cash flows provided by financing activities, partially offset by cash flows used in operating activities as discussed below. For the three months ended September 30, 2017 the cash flows from financing activities relate to the cash received of $3,320,000 for the private placement that closed in July 2017 and proceeds from the exercise of stock options of $60,655, partially offset by stock issuance costs of $19,226. For the three months ended September 30, 2017, cash flows used in operating activities amounted to $1,443,198. The largest use of cash within the operating activities in the current periods were an increase in employees' wages and benefits, various consultants related to the preparation of the Company’s U.S. registration statement on Form S-1 relating to the resale or other disposition by selling shareholders, and a reduction in accounts payable and accrued liabilities.
As of September 30, 2017, Zomedica had an unlimited number of authorized common shares with 89,338,555 common shares issued and outstanding. As of November 9, 2017, Zomedica had 89,338,555 common shares issued and outstanding, no change from September 30, 2017.
As of September 30, 2017 and December 31, 2016, Zomedica had shareholders’ equity of $6,131,992 and $4,134,401, respectively.
For complete financial results, please see Zomedica’s filings at www.sedar.com or visit the Zomedica website at www.ZOMEDICA.com.
With U.S. operations based in Ann Arbor, Michigan, Zomedica is a veterinary pharmaceutical and health care solutions company creating products for companion animals (canine, feline and equine) by focusing on the unmet needs of clinical veterinarians. Zomedica is developing a diversified portfolio to include diagnostics, devices, innovative drugs, and drug-delivery technologies. With a team comprised of clinical veterinary professionals, it is Zomedica’s mission to give veterinarians the opportunity to lower costs, increase productivity, and grow revenue while better serving the animals in their care. For more information, visit www.ZOMEDICA.com.
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Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: uncertainty as to whether our strategies and business plans will yield the expected benefits; availability and cost of capital; the ability to identify and develop and achieve commercial success for new products and technologies; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology and changes in laws and regulations; our ability to secure and maintain strategic relationships; risks pertaining to permits and licensing, intellectual property infringement risks, risks relating to future clinical trials, regulatory approvals, safety and efficacy of our products, the use of our product, intellectual property protection and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
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Investor Relations Contacts
Shameze Rampertab, CPA, CA
PCG Advisory Group
Kirin Smith, COO
Zomedica Pharmaceuticals Corp.