ANN ARBOR, Mich., Aug. 10, 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 six months ended June 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”).
“We have been actively developing our product pipeline and investigating strategies for domestic and global commercialization,” stated Chairman and CEO Gerald Solensky Jr. “Alongside these business building activities, we are diligently working towards seeking effectiveness of the Form S-1 registration statement from the U.S. Securities and Exchange Commission, in conjunction with approval for listing on the NYSE American.”
Corporate Highlights
- On April 10, 2017, Zomedica announced the closing of the second and final tranche of a previously announced non-brokered private placement offering, issuing 2,902,682 common shares at a price of CDN$1.50 for aggregate gross proceeds of approximately CDN$4,354,025 or $3,250,000.
- On April 24, 2017, Zomedica announced that it has filed a registration statement with the U.S. Securities and Exchange Commission on Form S-1 relating to the resale or other disposition by selling shareholders of up to 76,625,742 of its common shares and will seek approval for listing on the NYSE American (formerly NYSE MKT).
- On June 2, 2017, Zomedica announced that all ordinary and special resolutions were passed at the Annual and Special Meeting of Shareholders, with the following seven nominees re-elected as Directors of the Company: Gerald Solensky Jr., Shameze Rampertab, Jeffrey Rowe, James LeBar, Rodney Williams, Thomas Robitaille, and Jane Eagleson.
- On July 10, 2017, Zomedica announced that Bruk Herbst has joined the Company as Chief Commercial Officer. Mr. 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 first 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.
Summary Second Quarter 2017 Results
Zomedica recorded net loss and comprehensive loss for the three months ended June 30, 2017 of $1,588,370 or $0.02 per share, compared to a loss of $1,064,594 or $0.01 per share for the three months ended June 30, 2016.
For the three months ended June 30, 2017, the loss was attributed to general and administrative (“G&A”) expenses of $748,610, research and development (“R&D”) expenses of $504,235 and professional fees of $314,658, with no revenues as Zomedica does not currently have an approved product. For the three months ended June 30, 2016, the loss was attributed to R&D expenses of $308,200, G&A expenses of $276,863, listing expenses of $272,354 and professional fees of $201,623.
G&A expenses for the three months ended June 30, 2017 were $748,610, compared to $276,863 for the three months ended June 30, 2016. The increase was primarily due to the ongoing ramping up of business, as ZoMedica Pharmaceuticals Inc. was incorporated on May 14, 2015. The majority of these current period expenses related to the addition of personnel accounting for salaries of $414,567. Other expenses included travel and accommodation of $100,443 and marketing and investor relations costs of $63,084. 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 June 30, 2017 were $504,235, compared to $308,200 for the three months ended June 30, 2016. The increase was primarily due to the ramping up of R&D activities related to the establishment of labs, the hiring of full-time employees, new product candidates development, and contracted outsourcing activities. More specifically, salaries of $189,091, contracted outsourced activities of $111,450, and consulting fees of $76,005 relating to an increased level of 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 to support the opened 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 June 30, 2017 were $314,658, compared to $201,623 for the three months ended June 30, 2016. The increase was primarily due to expenses in connection with the preparation of Form S-1 relating to the resale or other disposition by selling shareholders, and initiating the approval process for listing on the NYSE American.
Liquidity and Outstanding Share Capital
Zomedica had cash of $2,649,808 as of June 30, 2017, compared to $1,767,035 as of March 31, 2017. The increase in cash during the three months ended June 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 June 30, 2017 cash flows provided by financing activities of $2,997,135 was driven by cash received of $3,000,000 for the private placement that closed in April 2017. For the three months ended June 30, 2017, cash flows used in operating activities amounted to $2,111,964. The largest use of cash within the operating activities in the current period was employees’ wages and benefits, various consultants related to the preparation of Form S-1 relating to the resale or other disposition by selling shareholders, and a reduction in accounts payable and accrued liabilities.
As of June 30, 2017, Zomedica had an unlimited number of authorized common shares with 87,407,924 common shares issued and outstanding. As of August 10, 2017, Zomedica had 89,330,615 common shares issued and outstanding, an increase of 1,922,691 from June 30, 2017 due to the completion of an equity financing in July 2017 and the exercise of stock options in July 2017.
For complete financial results, please see Zomedica’s filings at www.sedar.com or visit the Zomedica website at www.ZOMEDICA.com.
About Zomedica
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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