Zomedica Pharmaceuticals Corp. Announces First Quarter 2016 Financial Results of ZoMedica Pharmaceuticals Inc.
Continues momentum with clinical and business development strategies
ANN ARBOR, Mich., May 26, 2016 (GLOBE NEWSWIRE) -- Zomedica Pharmaceuticals Corp. (TSX-V:ZOM) ("Zomedica" or "Company"), a veterinary pharmaceutical company, today reported unaudited consolidated financial results for the three months ended March 31, 2016 of its wholly-owned subsidiary, ZoMedica Pharmaceuticals Inc. ("ZoMedica"). Amounts, unless specified otherwise, are expressed in U.S. dollars and are presented under International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS"). ZoMedica was incorporated on May 14, 2015, therefore there are no comparative period results.
"With the timely completion of Zomedica's Qualifying Transaction and TSX Venture Exchange listing earlier this month, our team is able to maintain momentum and efforts in achieving short-term milestones and long-term growth objectives," stated President and CEO Gerald Solensky, Jr.
- On April 27, 2016, Zomedica Pharmaceuticals Corp. (formerly "Wise Oakwood Ventures Inc.") announced the completion of its Qualifying Transaction ("Transaction") with ZoMedica. The shares of Zomedica began trading under the new symbol "ZOM" on Monday May 2, 2016 on the TSX Venture Exchange.
- On May 10, 2016, Zomedica announced that it opened its first Investigational New Animal Drug Application ("INAD") with the U.S. Food and Drug Administration Center for Veterinary Medicine for ZM-012, an anti-infective therapeutic for companion animals.
- On May 17, 2016, Zomedica announced the completion of a research collaboration agreement that includes an option for an exclusive worldwide animal health license with CTX Technology, Inc. for their peptide-based skin penetration platform technology.
Summary First Quarter 2016 Results
ZoMedica recorded net loss and comprehensive loss for the three months ended March 31, 2016 of $931,642 or $0.01 per share. The loss was attributed to research and development ("R&D"), general and administrative, and professional fees expenses, with no revenues as ZoMedica does not currently have an approved product.
Expenditures for R&D for the three months ended March 31, 2016 were $221,712. The majority of these expenses related to salaries of $128,445 and consulting costs of $48,526 as ZoMedica ramped up activities in its lab including in vitro work to support the further development of its intellectual property, outsourcing of in vivo studies for additional support of its IP and preparation of opening its INAD for ZM-012. ZoMedica expects R&D expenditures throughout 2016 will be higher as activities accelerate.
General and administrative expenses for the three months ended March 31, 2016 were $452,521. This is largely attributable to the addition of personnel accounting for salaries of $156,739, share-based compensation expense of $146,332, and office costs of $55,176. ZoMedica expects general and administrative expenditures throughout 2016 will be higher as activities accelerate and subsequent to the closing of the Transaction and public listing on the TSX Venture Exchange discussed above.
Professional fees for the three months ended March 31, 2016 were $244,837 and relate to the use of various consultants including lawyers and accountants in establishing the initial operations, preparing ZoMedica to execute the business plan, and the closing of the Transaction and public listing on the TSX Venture Exchange.
Liquidity and Outstanding Share Capital
ZoMedica had cash of $2,542,704 as at March 31, 2016. The decrease in cash during the three months ended March 31, 2016 is mainly a result of the cash flows used in operating activities as discussed below. For the three months ended March 31, 2016, cash flows used in operating activities amounted to $616,012. The largest use of cash within the operating activities was for employees' wages and benefits, and various consultants related to the Transaction and public listing on the TSX Venture Exchange.
As at March 31, 2016, ZoMedica had an unlimited number of authorized common shares with 77,370,716 common shares issued and outstanding.
With U.S. operations based in Ann Arbor, Michigan, Zomedica is a veterinary pharmaceutical company targeting health and wellness solutions for companion animals (canine, feline and equine) through a ground-breaking approach that focuses on the unmet needs of clinical veterinarians. Zomedica is building a diversified portfolio of products comprised of the discovery, development and commercialization of innovative drugs alongside novel drug delivery systems, devices and diagnostics. With multiple clinical veterinarians in executive management, 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.
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 the release.
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.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
Zomedica Investor Relations Contact
Shameze Rampertab, CPA, CA
Zomedica Media Contact