OxyFile #415
LifeTECH Corporation Reports Results for the Fiscal Year Ended
October 31, 1996 and for the Three Months Ended January 31, 1997
TORONTO, March 20 1997 - LifeTECH Corporation announces its
results for the fiscal year ended October 31, 1996 and for the
three months ended January 31, 1997. For the fiscal year ended
October 31, 1996 LifeTECH reports a loss of $2,339,664 or $0.52
per share, compared with a loss of $1,404,011 or $0.39 per share
for the prior year. At October 31, 1996, the Corporation had total
assets of $5,255,967, of which $2,245,800 was cash, short term
deposits and marketable securities.
For the three months ended January 31, 1997, the Corporation
reports a loss of $655,083 or $0.14 per share, compared with a
loss of $506,511 or $0.11 per share for the same period in 1996.
At January 31, 1997, the Corporation had total assets of
$4,565,204, of which $1,445,170 was cash, short term deposits and
marketable securities.
Mr. Walter J. Dermott, President and CEO, states "Over the past
year, LifeTECH has achieved significant scientific milestones that
have established our Sterinetics System as the premier blood and
biological fluid sterilization technology in the world. Our
scientists have now inactivated key viruses representing the two
major virus groups -- enveloped and non-enveloped -- in human red
blood cells and Intravenous Immunoglobulin. A total of ten
scientific abstracts, a significant number for a new biotechnology
company, have been accepted for presentation and peer review at
major scientific conferences around the world. In December, 1996,
the Corporation made a major announcement at a joint news
conference with the Canadian Department of National Defence
(Surgeon General's Branch). LifeTECH and DND jointly reported the
results of research conducted by Dr. Fred Quimby at Cornell
University that verified the unique ability of ozone-induced
oxidative stress to inactivate Simian Immunodeficiency Virus in
human blood. This proof of concept research provided important
third party proof of concept that the Sterinetics System
sterilizes human blood of viruses in a dose-responsive manner."
Mr. Dermott continues: "Most importantly, our scientific advances
have been recognized by a major strategic partner. On January 28,
1997, we signed a Letter of Intent with Pall Corporation of East
Hills, New York to form a Strategic Alliance. In exchange for
payments totalling US$15 million over approximately three years,
plus on-going royalties on sales, Pall will acquire exclusive
marketing rights for the Sterinetics System for blood collection
sets for red blood cells, platelets and plasma. This Strategic
Alliance with Pall provides the financial support, R&D support and
market strength to move the Sterinetics System into the multi-
billion dollar global sterilization marketplace."
The following is a summary of consolidated financial information
for the fiscal year end:
Year Ended Year Ended
October 31, 1996 October 31, 1995
(audited) (audited)
--------- ---------
Research and Development $1,745,144 $999,570
Loss for the Period $2,339,664 $1,404,011
Loss Per Common Share $0.52 $0.39
Weighted Average Number
of Shares Outstanding 4,523,302 3,573,543
As at As at
October 31, 1996 October 31, 1995
(audited) (audited)
--------- ---------
Cash, Short Term Investments
and Marketable Securities $2,245,800 $5,082,835
Total Assets $5,255,967 $6,702,424
Shareholders' Equity $4,032,991 $6,369,880
The following is a summary of consolidated first quarter financial
information:
Three Months Ended Three Months Ended
January 31, 1997 January 31, 1996
(unaudited) (unaudited)
----------- -----------
Research and Development $422,732 $333,122
Loss for the Period $655,083 $506,511
Loss Per Common Share $0.14 $0.11
Weighted Average Number
of Shares Outstanding 4,524,359 4,522,859
As at As at
January 31, 1997 January 31, 1996
(unaudited) (unaudited)
----------- -----------
Cash, Short Term Investments
and Marketable Securities $1,445,170 $4,275,665
Total Assets $4,565,204 $6,733,250
Shareholders' Equity $3,377,908 $5,863,369