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BioMS Medical announces first quarter 2010 results

^{Published on 2010-05-14 14:10:15 - Market Wire}
 

 - Subsequent to the end of the quarter, on May 3, 2010, the Company announced a strategy to become a service provider to the healthcare industry whereby BioMS will directly invest in and advise companies on strategy, financing, mergers & acquisitions (M&A), licensing transactions and undertake technology development. - The Company also announced it had hired Mr. Nitin Kaushal, a leading healthcare investment banker, to implement the Company's new strategy. Mr. Kaushal brings more than 25 years of financial and investment experience to BioMS and will serve as its Executive Vice President and Managing Director. - BioMS announced it intends to change its name to Medwell Capital Corp. subject to approval by the Toronto Stock Exchange and shareholders at the annual general meeting to be held on June 25, 2010. - In the first quarter, the Company completed its first investment, acquiring 30,000,000 common shares of Spectral Diagnostics Inc. ("Spectral"), representing 39.57% of its issued and outstanding common shares, and concurrently acquiring 15,000,000 common shares purchase warrants of Spectral as well. - As part of its new strategy, the Company entered into a three year services agreement with Spectral and will provide clinical, regulatory and capital markets consulting services in exchange for $3 million paid to BioMS over the term of the contract. - On March 3, 2010, Spectral received Investigational Device Exemption (IDE) approval from the U.S. Food and Drug Administration (FDA) for Toraymyxin(TM), a treatment for severe sepsis. This approval permits Spectral to initiate its planned pivotal trial for Toraymyxin(TM) in the United States. - Certain employees, officers and directors of BioMS Medical acquired 7,245,000 BioMS shares out of 12,915,365 sold by the University of Alberta on April 30, 2010. 

 About BioMS Medical Corp. ------------------------- 

 BioMS Medical Corp. Interim Consolidated Balance Sheets (Unaudited) ------------------------------------------------------------------------- (expressed in thousands of Canadian dollars) March 31, December 31, 2010 2009 $ $ (Unaudited) Assets Current assets Cash and cash equivalents 32,010 48,774 Short-term investments 2,665 2,662 Accounts receivable 250 - Goods and services tax recoverable 36 37 Other prepaid expenses 77 79 Investments 20,560 - Assets of discontinued operation - 771 ----------- ----------- 55,598 52,323 Property and equipment 315 350 ----------- ----------- 55,913 52,673 ----------- ----------- ----------- ----------- Liabilities Current liabilities Accounts payable and accrued liabilities 345 358 Liabilities of discontinued operation 1,000 4,464 ----------- ----------- 1,345 4,822 ----------- ----------- Share capital 175,714 175,714 Contributed surplus 11,369 10,937 Accumulated deficit (132,515) (138,800) ----------- ----------- 54,568 47,851 ----------- ----------- 55,913 52,673 ----------- ----------- ----------- ----------- BioMS Medical Corp. Interim Consolidated Statements of Operations and Comprehensive Loss (Unaudited) ------------------------------------------------------------------------- (expressed in thousands of Canadian dollars and shares, except per share amounts) Three-month period ended March 31, ------------------------- 2010 2009 $ $ Revenue Unrealized gain on investments 8,560 - Contract services 250 - Interest 32 170 ----------- ----------- 8,842 170 ----------- ----------- Expenses Operating, general and administrative 1,701 2,075 Stock-based compensation 432 1,845 Amortization of property and equipment 37 43 Foreign exchange loss (gain) 164 (16) ----------- ----------- 2,334 3,947 ----------- ----------- Net income (loss) from continuing operations 6,508 (3,777) Net income (loss) from discontinued operation (223) 2,378 ----------- ----------- Net income (loss) and comprehensive income (loss) 6,285 (1,399) ----------- ----------- ----------- ----------- Basic and diluted net loss per common share - continuing operations 0.07 (0.04) Basic and diluted net income (loss) per common share - discontinued operation (0.01) 0.02 Basic and diluted net income (loss) per common share 0.07 (0.02) Basic and diluted weighted average number of common shares outstanding 91,008,923 91,009,323 BioMS Medical Corp Interim Consolidated Statements of Cash Flows (Unaudited) ------------------------------------------------------------------------- (expressed in thousands of Canadian dollars) Three-month period ended March 31, ------------------------- 2010 2009 $ $ Cash provided by (used in) Operating activities Net income (loss) 6,285 (1,399) Items not involving cash Unrealized gain on investments (8,560) - Stock-based compensation 432 1,845 Amortization of property and equipment 37 43 ----------- ----------- (1,806) 489 Net change in non-cash working capital items (439) (218) ----------- ----------- (2,245) 271 ----------- ----------- Investing activities Net purchase of investments (12,000) - Net purchase of short-term investments (3) (19) Purchase of property and equipment (2) (1) (12,005) (20) ----------- ----------- Financing activities Proceeds from issuance of share capital - - Repurchase of share capital - - ----------- ----------- - - ----------- ----------- Foreign exchange (loss) gain on cash and cash equivalents held in foreign currency 180 169 ----------- ----------- Cash (used in) provided by continuing operations (14,070) 420 ----------- ----------- Cash used in discontinued operation (2,694) (12,517) ----------- ----------- Decrease in cash and cash equivalents (16,764) (12,097) Cash and cash equivalents - Beginning of period 48,774 87,826 ----------- ----------- Cash and cash equivalents - End of period 32,010 75,729 ----------- ----------- ----------- ----------- Cash and cash equivalents consists of Bank accounts 806 846 Interest bearing deposits and securities 31,204 74,883 ----------- ----------- 32,010 75,729 ----------- ----------- ----------- -----------