VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 14, 2009) - Pyng Medical Corp. (TSX VENTURE:PYT) today released its unaudited second quarter fiscal 2009 results for the period ending March 31, 2009.
The Company's sales for the second quarter of fiscal 2009 were $1,385,177 which was comparable to $1,444,769 for the corresponding period for 2008. On a year to date basis, sales for fiscal 2009 were $3,019,163 compared to $2,755,976 for fiscal 2008; which was a 10% increase over 2008. Our flagship product, the FAST1(R) Intraosseous Infusion System, is the largest selling Sternal IO System with over 190,000 units shipped to-date.
Cost of sales for the second quarter of fiscal 2009 was $412,229 providing a gross margin of $972,948 or 70%. Total operating expenses for the quarter increased to $958,627, compared to $705,675 for the second quarter of fiscal 2008. On a percentage basis, operating expenses increased from 49% to 69% of sales for second quarter of 2009. The Company recorded a net loss before tax of $137,926 for the quarter ending March 31, 2009, attributable to increased expenditures to support continued expansion of the business.
The Company also announced that it intends to complete a non-brokered private placement (the "Private Placement") of secured subordinated convertible notes (the "Notes").
The Notes will mature 30 months after their date of issue and bear interest at an annual rate of 10% above the Canadian bank prime rate, payable quarterly. The holders of the Notes may exercise their right to convert all or a portion of the total outstanding principal amount of the Notes into units of the Company (the "Units"). Each Unit will consist of one common share and one non-transferable share purchase warrant exercisable to purchase an additional common share until the later of (i) the maturity date of the Notes and (ii) two years from the date the Notes are converted. The Notes will be secured by a second charge on certain of the Company's assets and subordinate to certain senior indebtedness.
Closing of the Private Placement is anticipated to occur on or about 29 June, 2009 is subject to the negotiation, execution and delivery of definitive agreements and the receipt of applicable regulatory approvals including approval of the TSX Venture Exchange (the "Exchange"). Any securities to be issued will be subject to a hold period of four months from the closing date in accordance with the rules and policies of the Exchange and applicable Canadian securities laws.
No "control persons" (as defined in Policy 4.1 of the Exchange) or new insiders are expected to be created as a result of the Private Placement.
The proceeds of the Private Placement will be used by the Company for general working capital and continued development of its products, particularly the new and improved FASTx(TM) Intraosseous Infusion System and the CRIC(TM) Cricothyrotomy System. The Company expects to shortly meet with the United States Food and Drug Administration ("FDA") with respect to its application for the CRIC(TM). Development efforts also continue on the FASTx(TM) product. The schedule of the 510K FDA application, necessary to bring the FASTx(TM) to market, is still pending by the company's management team.
Resignation of Director
Further to its press release dated March 17, 2009, the Company announces that Mr. David Christie has resigned his position as Director of the Company. We thank Mr. Christie for his time and efforts and wish him every success in the future.
About Pyng Medical Corp.
Pyng Medical Corp. commercializes award-winning trauma and resuscitation products for front-line critical care personnel. Creators of the FAST1(R) Intraosseous Infusion System, Pyng's expanded product portfolio includes a variety of innovative, lifesaving tools. With growing markets in North America, Europe and Asia, Pyng offers user-preferred medical devices for use by hospital staff, emergency medical services and military forces worldwide. Pyng has received the exclusive 2008 Medical Device Company of the Year Award from Life Sciences British Columbia for its sustained achievements in commercializing the Company's proprietary FAST1(R), the only medical device able to provide rapid sternal access for administering drugs and fluids to the heart in seconds. The Company was also selected in the "2007 TSX Venture 50" Top 10 companies in Life Sciences based on solid financial metrics for the year ending December 31, 2006.
Safe Harbour Statement; Forward-Looking Statements: This release may contain forward-looking statements based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects", "anticipates", "plans", "intends", "projects", "indicates", and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents which may be filed with the British Columbia Securities Commission, the Alberta Securities Commission, the Ontario Securities Commission, the TSX Venture Exchange, as well as other USA Commissions, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw material, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales in some products.
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Pyng Medical Corp.