OxyFile #529
LifeTech Corporation Reports Results for the Third Quarter and Nine
Months Ended July 31, 1997
TORONTO, Sept. 30, 1997 - LifeTECH Corporation announces its results for
the three months and nine months ended July 31, 1997.
The Corporation reports a loss of $410,818 or $0.09 per share for the
three months ended July 31, 1997, compared with a loss of $599,180 or
$0.13 per share for the same period in 1996. The loss for the nine months
ended July 31, 1997 was $1,727,781 or $0.38 per share, compared with
$1,559,477 or $0.34 per share for the nine months ended July 31, 1996. At
July 31, 1997 the Corporation had net assets of $2,395,676, of which
$650,665 was cash and short term deposits.
Strategies to raise needed capital are now directed to a rights offering
to existing shareholders and warrantholders, in conjunction with a
possible private placement of common shares. The proposed rights offering
will give existing shareholders and warrantholders an opportunity to buy
an additional common share for each common share or warrant currently
owned. If these fundraising efforts are successful, the funds will take
LifeTECH through the next phase which will include data generation for
third party Pre-Clinical Trials and the commencement of Pre-Clinical
Trials for the U.S. FDA and European regulatory approvals.
Mr. Walter J. Dermott, President and CEO, said "Our principal focus is
to secure key strategic alliances and the financing needed to see the
Corporation through the next stage of data generation and third party
Pre-Clinical Trials. We are currently in discussions with eleven major
manufacturers worldwide to establish scientific and commercial
collaborations that will advance our technology into the key market areas
of human blood transfusion, fractionated blood products, animal sera and
tissue culture media. We expect to complete a series of scientific
collaborations with major players in the blood markets in Europe and the
United States during the fall of 1997."
In order to protect the Corporation's important and unique technology,
LifeTECH is submitting two additional patent applications to the United
States and International Patent Offices for new gas mass transfer devices
that achieve higher levels of viral inactivation and lower levels of
damage to the blood components. LifeTECH's goal remains to develop the
first cost effective technology to sterilize all blood components of all
viruses and bacteria.
The following is a summary of consolidated second quarter financial
information:
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
July 31, 1997 July 31, 1996 July 31, 1997 July 31, 1996
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Research and
Development $385,572 $391,942 $1,257,930 $1,190,225
Loss for the Period $410,818 $599,180 $1,727,781 $1,559,477
Loss Per Common
Share $0.09 $0.13 $0.38 $0.34
Weighted Average
Number of Shares
Outstanding 4,549,401 4,523,120 4,532,798 4,522,947
As at As at
July 31, 1997 Oct. 31, 1996
(unaudited) (audited)
----------- ---------
Cash, Short Term
Investments and
Marketable
Securities $650,665 $1,970,800
Total Assets $3,326,967 $5,255,967
Shareholders' Equity $2,395,676 $4,032,991