SAINT LAURENT, QUEBEC, Nov. 10, 2009 (Marketwire) -- IntelGenx Technologies Corp. (TSX VENTURE:IGX) (OTCBB:IGXT) ("IntelGenx") today announced its results, reported in US dollars, for the three and nine months ended September 30, 2009.
Raised approximately $3.9 million in Q3 through private placements.
Repaid the balance of convertible debt of approximately $1.0 million in September, 2009.
Total Revenue increased 36% to $383.4 thousand in Q3 and increased 47% to $1,084.8 thousand year-to-date (2008: $282.2 thousand and $738.3 thousand respectively)
Total Expenses decreased 6% to $1,082.4 thousand in Q3 and 22% to $1,494.4 thousand year-to-date (2008: $1,150.4 thousand and $3,310.3 thousand respectively)
The Net Loss improved by 22% to $655.8 thousand in Q3 and improved by 44% to $1,364.5 thousand for the year-to-date (2008: loss of $839.2 thousand and $2,454.1 thousand respectively)
The Basic and Diluted Loss Per Common Share improved by 50% to $0.02 in Q3 and improved by 54% to $0.06 for the year-to-date (2008: Basic and Diluted Loss Per Common Share of $0.04 and $0.13 respectively)
Commenting on the results, Horst Zerbe, President and Chief Executive Officer of IntelGenx, said: "In the third quarter we substantially strengthened our balance sheet by successfully completing our largest fundraising to date, repaying the balance of convertible debt, and retaining sufficient cash to support ongoing R&D operations. I am also pleased to report that operationally our year-to-date revenue remains 47% above prior year whilst expenses are 22% lower, leading to an improvement of more than $1 million in our net result".
Appointed IR firms - on October 1, 2009 the Company engaged Little Gem Life Science Partners ("Little Gem") and SectorSpeak Inc. ("SectorSpeak") to spearhead the development of the Company's relationships with the investment communities of North America. Although both firms will work closely together, Little Gem, based in New York, has been retained with primary responsibility for Investor Relations activities in the USA whilst SectorSpeak, a Canadian Corporation, will concentrate on the Canadian market. Both firms have been engaged for a term of 12 months.
Repaid convertible notes outstanding - on September 22, 2009 the Company repaid the balance of the convertible notes outstanding of $976,333. The Company had entered into convertible note agreements with certain institutional and accredited investors on May 22, 2007 for amounts totaling $1,500,000. The convertible notes bore interest at the rate of 8% per annum, payable quarterly and substantially all of the assets of the Company had been pledged as security of the convertible notes. The repayment of the convertible notes strengthens the balance sheet and creates additional cost savings for the Company.
Raised approximately $3.9 million in Q3 through private placements - on July 13, 2009 the Company closed a private placement offering of approximately 10.5 million special warrants for gross proceeds of approximately $3.6 million. Each special warrant entitles its holder to receive, upon exercise or deemed exercise thereof, one common share of the Company and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share of the Company at a price of $0.80 until July 13, 2012.
On July 22, 2009, as part of a private placement, the Company issued 350,000 units to investors in the United States for gross proceeds of approximately $127.5 thousand. Each unit consists of one common share of the Company and one common share purchase warrant. Each warrant entitles the holder to purchase one common share at an exercise price of $0.80 per common share and expires 36 months after the date of issuance.
On September 3, 2009, as part of a private placement, the Company issued 250,000 units to investors for gross proceeds of approximately $92.9. Each unit consists of one common share of the Company and one common share purchase warrant. Each warrant entitles the holder to purchase one common share at an exercise price of $0.80 per common share and expires 36 months after the date of issuance.
IntelGenx is a drug delivery company focused on the development of oral controlled-release products as well as novel rapidly disintegrating delivery systems. IntelGenx uses its unique multiple layer delivery system to provide zero-order release of active drugs in the gastro-intestinal tract. IntelGenx has also developed novel delivery technologies for the rapid delivery of pharmaceutically active substances in the oral cavity based on its experience with rapidly disintegrating films. IntelGenx's research and development pipeline includes products for the treatment of pain, hypertension, osteoarthritis, and depressive disorders. More information is available about the company at www.intelgenx.com.
FORWARD LOOKING STATEMENTS:
This document may contain forward-looking information about IntelGenx's operating results and business prospects that involve substantial risks and uncertainties. Statements that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, but are not limited to, statements about IntelGenx's plans, objectives, expectations, strategies, intentions or other characterizations of future events or circumstances and are generally identified by the words "may," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "could," "would," and similar expressions. All forward looking statements are expressly qualified in their entirety by this cautionary statement. Because these forward-looking statements are subject to a number of risks and uncertainties, IntelGenx's actual results could differ materially from those expressed or implied by these forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the heading "Risk Factors" in IntelGenx's annual report on Form 10-K for the fiscal year ended December 31, 2008, filed with the United States Securities and Exchange Commission and available at www.sec.gov, and also filed with Canadian securities regulatory authorities and www.sedar.com. IntelGenx assumes no obligation to update any such forward-looking statements.
Each of the TSX Venture Exchange and OTC Bulletin Board has neither approved nor disapproved the contents of this press release.