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Read More...Monday 27th February 2006
NeuroMedix Announces First Quarter Fiscal 2006 Financial Results
TORONTO, Feb. 27 /CNW/ - NeuroMedix Inc. ("NeuroMedix") (TSXV: NMX) Today announced its financial results for the quarter ended December 31, 2005.
During the three-month period ended December 31, 2005, NeuroMedix continued to strengthen its management team in order to build a strong company for its initial public offering.
Subsequent to December 31, 2005, NeuroMedix achieved the following milestones:
- Completed its initial public offering ("IPO") which resulted in gross proceeds of $3,300,000, including the exercise of an over-allotment option, and expected net proceeds of approximately $2.7 million; and
- Commenced trading on the TSX Venture Exchange ("TSX-V") under the symbol, "NMX". NeuroMedix strengthened its management team through the addition of Dr. Mark L. Pearson as Chief Executive Officer. Dr. Pearson has brought to NeuroMedix a breadth of experience in both the biotechnology and pharmaceutical industries as well as strong leadership.
NeuroMedix completed its IPO on January 24, 2006. The IPO resulted in gross proceeds of $3,300,000, through the issuance of 13,200,000 common shares at $0.25, and expected net proceeds of approximately $2.7 million. After the completion of the IPO, NeuroMedix's common shares commenced trading on the TSX-V under the symbol, "NMX". The completion of the IPO provides NeuroMedix with the financing necessary to continue to advance its lead compound, Minozac, for the treatment of Alzheimer's disease.
"As the new Chief Executive Officer of NeuroMedix, I am excited about the technology NeuroMedix has licensed from Northwestern University which we hope will ameliorate the symptoms of Alzheimer's disease and help patients and caregivers in its management", said Dr. Mark L. Pearson, Chief Executive Officer of NeuroMedix.
Technology Overview
NeuroMedix's technology received further validation in January 2006, with the publication of a scientific article entitled "Glia as a therapeutic target: selective suppression of human Abeta-induced regulation of brain proinflammatory cytokine production attenuates neurodegeneration" in the Journal of Neuroscience by Drs. Martin Watterson and Linda Van Eldik, the inventors of NeuroMedix's technology, and their team at Northwestern University. This article supports the neuroinflammatory hypothesis of disease progression in Alzheimer's disease and offers hope that the reversal of this progression by targeting glia-based cytokine release may offer a truly novel approach to treating Alzheimer's disease.
NeuroMedix is currently focused on refining the manufacturing process for its lead compound and expects to engage a contract manufacturing organization in the next few weeks. NeuroMedix expects it will take into the second quarter of calendar 2006 to manufacture the active drug substance which will allow it to commence pre-clinical toxicology studies. Upon completion of these studies, an application will be made to initiate a Phase I clinical trial. Based on the current expectations regarding manufacturing, NeuroMedix anticipates that the first human study will commence in the fourth quarter of calendar 2006.
Financial Review
For the three-month period ended December 31, 2005, NeuroMedix recorded a net loss of $212,047, which amounts to a loss of $0.01 per common and Class B share for the period. The loss is reflective of costs associated with research contracts, intellectual property development, consulting expenses, employee expenses and general administrative costs.
Research and development expenses were $119,377 for the three-month period ended December 31, 2005. The research and development expenses for this period consisted primarily of fees paid to external service providers for items such as research, research management and intellectual property as well as some internal employee expenses.
General and administrative expenses were $91,794 for the three-month period ended December 31, 2005. The general and administrative expenses for this period consisted primarily of payroll, legal, accounting, tax, and consulting fees, board compensation and general office expenses.
Subsequent to December 31, 2005, NeuroMedix filed a final prospectus, dated January 9, 2006, and completed its IPO. The IPO was completed on January 24, 2006 and under the terms of an agency agreement NeuroMedix issued 13,200,000 common shares, including the exercise of an over- allotment option, at a price per share of $0.25 for gross proceeds of $3,300,000. NeuroMedix received cash proceeds of $2,932,115, net of the agent's commissions, legal fees and expenses of $367,885. NeuroMedix expects to have net proceeds of approximately $2.7 million, after the payment of the remaining expenses of the offering. After completion of its IPO, NeuroMedix currently believes that it has adequate financial resources to meet anticipated expenditures until the second quarter of calendar 2007.
About NeuroMedix:
NeuroMedix is a biotechnology company focused on the development of therapeutic agents for the treatment of degenerative and inflammatory diseases of the central nervous system, such as Alzheimer's disease, multiple sclerosis and Parkinson's disease. Our therapeutic drug candidates are based on research from a team of leading experts in the field of neuroinflammation and have been demonstrated to reduce brain inflammation, to protect neuronal cells, and to prevent the loss of cognitive function in an Alzheimer's disease animal model in mice. Based on these findings, NeuroMedix is pursuing the development of a lead compound for the prevention of Alzheimer's disease in humans. NeuroMedix's shares are listed on the TSX Venture Exchange under the symbol "NMX".
Financial Information to follow:
NeuroMedix Inc.
(a development stage company)
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, September 30,
2005 2005
$ $
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ASSETS
Current
Cash 32,453 18,099
Receivables 14,071 4,611
Deposits on collaborations - 26,051
Deferred financing costs 125,940 17,625
Prepaid expenses - 12,500
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Total current assets 172,464 78,886
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Property and equipment, net 10,569 2,451
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183,033 81,337
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 307,996 51,776
Promissory note 50,586 -
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Total liabilities 358,582 51,776
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Shareholders' equity
Share capital
Common shares 1 1
Class B shares 491,968 491,968
Contributed surplus 6,937 -
Deficit (674,455) (462,408)
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Total shareholders' equity (175,549) 29,561
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183,033 81,337
Commitments
Guarantees
Subsequent event
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NeuroMedix Inc.
(a development stage company)
CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT
(Unaudited)
Three-month Cumulative
period ended from
December 31, 2005 inception
$ $
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EXPENSES
Research and development 119,377 527,159
General and administrative 91,794 146,532
Interest expense 586 586
Foreign exchange gain (215) (215)
Amortization 507 766
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212,049 674,828
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Loss before the following (212,049) (674,828)
Interest income 2 373
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Net loss for the period (212,047) (674,455)
Deficit, beginning of period (462,408) -
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Deficit, end of period (674,455) (674,455)
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Basic and diluted net loss
per common and Class B share $0.01
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Weighted average common and
Class B shares outstanding 17,050,000
NeuroMedix Inc.
(a development stage company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three-month Cumulative
period ended from
December 31, 2005 inception
$ $
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OPERATING ACTIVITIES
Net loss for the period (212,047) (674,455)
Add items not involving cash
Amortization 507 766
Stock-based compensation expense 6,937 6,937
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(204,603) (666,752)
Changes in non-cash working capital items 176,996 167,985
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Cash used in operating activities (27,607) (498,767)
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INVESTING ACTIVITIES
Purchase of property and equipment (8,625) (11,335)
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Cash used in investing activities (8,625) (11,335)
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FINANCING ACTIVITIES
Proceeds from issuance of common shares - 1
Proceeds from issuance of Class B shares, net - 491,968
Increase in promissory note 50,586 50,586
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Cash provided by financing activities 50,586 542,555
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Net increase in cash during the period 14,354 32,453
Cash, beginning of period 18,099 -
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Cash, end of period 32,453 32,453
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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Except for historical information, 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, which may 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 Company's ongoing quarterly and annual reporting.
For further information on NeuroMedix, visit www.neuromedixinc.com or contact:
Mark Pearson, PhD.
Chief Executive Officer
NeuroMedix Inc.
mark@neuromedixinc.com
Catherine Auld, CA
Chief Financial Officer
NeuroMedix Inc.
cathy@neuromedixinc.com
