- increases in revenues and gross profit margin over Fiscal 2007 - (all figures are in Canadian dollars unless otherwise noted)
BELLEVILLE, ON, Sept. 19 /CNW/ - Bioniche Life Sciences Inc. (TSX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced financial results for its 2008 fiscal year ended June 30, 2008.
"A highlight of the fiscal year was the announcement in $25 million of non-dilutive financing for the scale-up of our E. coli O157 vaccine manufacturing," noted Patrick Montpetit, Chief Financial Officer of Bioniche Life Sciences Inc. "This was achieved through the support of Canadian and Ontario government programs and the Business Development Bank of Canada. The scale-up is now underway, with engineering drawings completed, detailed design initiated and equipment on order."
Fiscal 2008 Financial Results Highlights
Consolidated revenues for the fiscal year increased by 0.7% to $27.7 million, as compared to $27.5 million in Fiscal 2007. Increased sales of animal health products in the U.S. and Europe contributed to this increase. The overall gross profit margin was 57% this fiscal year as compared to 55.6% in Fiscal 2007.
Expenses before research and development totalled $17.7 million for the 12 months ending June 30, 2008, which compares to $18.5 million recorded in the same period last year. This decrease of $0.8 million, or 4%, reflects a reduction in interest and deferred financing fees.
Gross research and development (R&D) expenses increased $1.0 million in Fiscal 2008, reaching $15.9 million compared to $14.9 million in Fiscal 2007. The majority of these costs can be attributed to the ongoing Phase III clinical program for the Company's Urocidin(TM) bladder cancer therapy and the E. coli O157 cattle vaccine development program.
The basic and fully-diluted net loss per share for Fiscal 2008 was ($0.26) compared to a net loss per share of ($0.32) in Fiscal 2007.
Earnings before interest, taxes, depreciation, amortization and foreign exchange were $1.3 million, no change from Fiscal 2007.
"We continue to work toward North American registrations for our E. coli O157 vaccine while advancing discussions with potential marketing partners for our proprietary bladder cancer therapy, Urocidin," added Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. "Meeting milestones with regard to these initiatives will, we believe, greatly enhance shareholder value in Bioniche."
About Bioniche Life Sciences Inc.
Bioniche Life Sciences Inc. is a research-based, technology-driven Canadian biopharmaceutical company focused on the discovery, development, manufacturing, and marketing of proprietary products for human and animal health markets worldwide. The fully-integrated company employs approximately 200 skilled personnel and has three operating divisions: Human Health, Animal Health, and Food Safety. The Company's primary goal is to develop proprietary cancer therapies supported by revenues from marketed products in human and animal health. Bioniche has been named one of Canada's Top Ten Life Sciences Companies for 2008. For more information, please visit www.Bioniche.com.
Except for historical information, this news release may contain forward-looking statements that reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause, 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.
Bioniche Life Sciences Inc.
Amalgamated under the laws of Ontario
CONSOLIDATED BALANCE SHEETS
As at June 30
2008 2007
$ $
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ASSETS
Current
Cash and cash equivalents 4,399,065 1,523,597
Short-term investments - 9,500,000
Accounts receivable 6,443,299 5,495,836
Inventories 4,738,765 5,480,167
Prepaid expenses and deposits 640,326 658,867
Foreign currency embedded derivatives 59,693 -
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16,281,148 22,658,467
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Long-term
Property, plant and equipment 9,718,157 9,557,359
Intangible assets 7,688,698 8,545,215
Goodwill 456,155 456,155
Deferred financing fees - 209,578
Long-term accounts receivable 478,852 100,000
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34,623,010 41,526,774
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Revolving credit facility 2,593,059 895,619
Accounts payable and accrued liabilities 8,341,398 6,399,382
Income and other taxes payable 104,592 283,845
Current portion of deferred government
incentives - 541,282
Current portion of long-term debt and
obligations under capital leases 706,505 123,769
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11,745,554 8,243,897
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Long-term
Long-term debt 1,673,853 421,396
Obligations under capital leases 1,176,237 764,933
Deferred government incentives 3,606,926 2,986,572
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18,202,570 12,416,798
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Shareholders' equity
Share capital 92,941,966 90,038,524
Special warrants 2,174,008 2,174,008
Other paid-in capital 6,056,115 5,528,059
Deficit (84,751,649) (68,630,615)
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16,420,440 29,109,976
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34,623,010 41,526,774
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Bioniche Life Sciences Inc.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Preferred shares -
Common shares Series 1
No. $ No. $
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Balance, June 30,
2006 39,198,140 61,034,185 167 161,000
Net loss for
the year - - - -
Issued under
employee share
ownership plan 544,777 508,997 - -
Fair value of
stock options
vested - - - -
Directors'
remuneration 109,998 77,000 - -
Share bonus 286,668 327,615 - -
Shares issued on
exercise of
options 2,000 1,889 - -
Conversion of
Series II
preferred shares 2,388,323 2,932,929 - -
Term debt repayment
made in shares 2,574,108 2,148,007 - -
Warrants issued in
connection with
the convertible
term note - - - -
Revolving debt
principal payments
made in shares 2,004,745 1,602,963 - -
Warrants issued
to a consultant - - - -
Unit offering, net
of issue costs 14,583,333 12,650,150 - -
Shares issued on
exercise of
warrants, net
of issue costs 19,775 35,002 - -
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Balance, June 30,
2007 61,711,867 81,318,737 167 161,000
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Less share
purchase loan - (240,000) - -
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61,711,867 81,078,737 167 161,000
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Other
Preferred shares - Special paid-in
Series ll warrants capital
No. $ $ $
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Balance, June 30,
2006 12,000,000 11,731,716 - 4,556,290
Net loss for
the year - - - -
Issued under
employee share
ownership plan - - - -
Fair value of
stock options
vested - - - 221,712
Directors'
remuneration - - - -
Share bonus - - - -
Shares issued on
exercise of
options - - - (89)
Conversion of
Series II
preferred shares (3,000,000) (2,932,929) - -
Term debt repayment
made in shares - - - (162,931)
Warrants issued in
connection with
the convertible
term note - - - 93,023
Revolving debt
principal payments
made in shares - - - -
Warrants issued
to a consultant - - - 39,300
Unit offering, net
of issue costs - - 2,170,251 795,783
Shares issued on
exercise of
warrants, net
of issue costs - - 3,757 (15,029)
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Balance, June 30,
2007 9,000,000 8,798,787 2,174,008 5,528,059
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Less share
purchase loan - - - -
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9,000,000 8,798,787 2,174,008 5,528,059
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Cumulative
translation
Deficit adjustment Total
$ $ $
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Balance, June 30,
2006 (53,869,621) (23,379) 23,590,191
Net loss for
the year (14,760,994) 23,379 (14,737,615)
Issued under
employee share
ownership plan - - 508,997
Fair value of
stock options
vested - - 221,712
Directors'
remuneration - - 77,000
Share bonus - - 327,615
Shares issued on
exercise of
options - - 1,800
Conversion of
Series II
preferred shares - - -
Term debt repayment
made in shares - - 1,985,076
Warrants issued in
connection with
the convertible
term note - - 93,023
Revolving debt
principal payments
made in shares - - 1,602,963
Warrants issued
to a consultant - - 39,300
Unit offering, net
of issue costs - - 15,616,184
Shares issued on
exercise of
warrants, net
of issue costs - - 23,730
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Balance, June 30,
2007 (68,630,615) - 29,349,976
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Less share
purchase loan - - (240,000)
-----------------------------------------------------------
(68,630,615) - 29,109,976
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Preferred shares -
Common shares Series 1
No. $ No. $
-------------------------------------------------------------------------
Balance, June 30,
2007 61,711,867 81,318,737 167 161,000
Transition
adjustment - - - -
Net loss for
the year - - - -
Issued under
employee share
ownership plan 808,291 638,500 - -
Fair value of stock
options vested - - - -
Directors'
remuneration 73,560 76,502 - -
Share bonus 516,886 408,340 - -
Warrants issued in
connection with
the revolving debt - - - -
Revolving debt
principal payments
made in shares 2,671,900 1,780,100 - -
Warrants issued
to a consultant - - - -
Adjustment for
conversion of
fractional shares 6 - - -
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Balance, June 30,
2008 65,782,510 84,222,179 167 161,000
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Less share
purchase loan - (240,000) - -
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65,782,510 83,982,179 167 161,000
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Other
Preferred shares - Special paid-in
Series ll warrants capital
No. $ $ $
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Balance, June 30,
2007 9,000,000 8,798,787 2,174,008 5,528,059
Transition
adjustment - - - -
Net loss for
the year - - - -
Issued under
employee share
ownership plan - - - -
Fair value of stock
options vested - - - 388,731
Directors'
remuneration - - - -
Share bonus - - - -
Warrants issued in
connection with
the revolving debt - - - 112,000
Revolving debt
principal payments
made in shares - - - -
Warrants issued
to a consultant - - - 27,325
Adjustment for
conversion of
fractional shares - - - -
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Balance, June 30,
2008 9,000,000 8,798,787 2,174,008 6,056,115
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Less share
purchase loan - - - -
-------------------------------------------------------------------------
9,000,000 8,798,787 2,174,008 6,056,115
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Deficit Total
$ $
---------------------------------------------
Balance, June 30,
2007 (68,630,615) 29,349,976
Transition
adjustment 134,674 134,674
Net loss for
the year (16,255,708) (16,255,708)
Issued under
employee share
ownership plan - 638,500
Fair value of stock
options vested - 388,731
Directors'
remuneration - 76,502
Share bonus - 408,340
Warrants issued in
connection with
the revolving debt - 112,000
Revolving debt
principal payments
made in shares - 1,780,100
Warrants issued
to a consultant - 27,325
Adjustment for
conversion of
fractional shares - -
---------------------------------------------
Balance, June 30,
2008 (84,751,649) 16,660,440
---------------------------------------------
Less share
purchase loan - (240,000)
---------------------------------------------
(84,751,649) 16,420,440
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Bioniche Life Sciences Inc.
CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
Years ended June 30
2008 2007
$ $
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REVENUE
Sales 27,666,670 27,479,727
Cost of sales 11,837,457 12,179,266
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Gross profit 15,829,213 15,300,461
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EXPENSES
Administration 6,710,565 7,239,106
Marketing and selling 6,993,390 6,106,225
Quality assurance 767,592 690,291
Interest on long-term debt 203,210 637,510
Other interest, net (1,450) 75,049
Accreted interest on discounted receivables (13,819) -
Accreted interest on convertible term note - 722,867
Amortization of property, plant and equipment 1,202,328 1,169,948
Amortization of intangible assets 856,517 856,518
Amortization of financial expenses 767,921 1,048,658
Foreign exchange loss (gain) 232,822 (55,375)
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17,719,076 18,490,797
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Loss before research and development expenses
and other items (1,889,863) (3,190,336)
Research and development expenses, gross 15,972,660 14,935,158
Less: government incentives, net (1,918,380) (1,727,403)
Change in unrealized loss on foreign currency
embedded derivatives 126,988 -
Loss on sale of investment - 192,157
Gain on sale of rights to future royalty stream - (2,127,587)
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Loss before income taxes (16,071,131) (14,462,661)
Provision for income taxes 184,577 298,333
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Net loss and comprehensive loss for the year (16,255,708) (14,760,994)
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Basic and fully diluted net loss per share (0.26) (0.32)
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Weighted average number of common shares
outstanding 63,104,876 45,827,257
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Bioniche Life Sciences Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended June 30
2008 2007
$ $
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OPERATING ACTIVITIES
Net loss for the year (16,255,708) (14,760,994)
Add (deduct) non cash items:
Amortization 2,826,766 3,075,124
Accreted interest on convertible term note - 722,867
Change in unrealized loss on foreign
currency embedded derivatives 126,988 -
Unrealized foreign exchange loss (34,680) 38,208
Stock-based compensation 388,731 221,712
Warrants issued to consultants 27,325 39,300
Share bonus and shares issued to directors 544,507 962,759
Employee share ownership plan 684,556 523,559
Loss on sale of investment - 192,157
Gain on sale of right to future royalty
stream and royalties recognized - (2,618,306)
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(11,691,515) (11,603,614)
Net change in non-cash working capital
balances 48,369 615,806
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Cash used in operating activities (11,643,146) (10,987,808)
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INVESTING ACTIVITIES
Acquisition of short-term investments - (11,000,548)
Proceeds from maturity of short-term
investments 9,500,000 1,500,548
Government incentives received on account
of property, plant and equipment 4,641 30,224
Proceeds on disposal of property, plant
and equipment - 4,786
Proceeds from sale of investment - 3,196,200
Selling costs incurred for sale of investment
and future royalty stream - (100,000)
Proceeds from sale of right to future
royalty stream - 3,652,800
Purchases of property, plant and equipment (584,573) (623,520)
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Cash provided by (used in) investing activities 8,920,068 (3,339,510)
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FINANCING ACTIVITIES
Proceeds from units issued - 17,500,000
Proceeds from over-allotment warrants issued - 22,500
Proceeds from exercise of compensation warrants - 23,730
Proceeds from exercise of stock options - 1,800
Unit issue costs incurred - (1,906,316)
Proceeds from term note 1,750,000 -
Payment of financing fees - debt (88,010) -
Proceeds from deferred government incentives 49,965 74,282
Proceeds from revolving credit facility 26,759,247 21,019,297
Repayment of revolving credit facility (22,635,316) (21,677,375)
Repayment of capital lease obligations (217,232) (198,799)
Repayment of senior and other long-term debt (20,108) (3,101,497)
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Cash provided by financing activities 5,598,546 11,757,622
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Net increase (decrease) in cash and cash
equivalents during the year 2,875,468 (2,569,696)
Cash and cash equivalents, beginning of year 1,523,597 4,093,293
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Cash and cash equivalents, end of year 4,399,065 1,523,597
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%SEDAR: 00013159EF
