Results and updateMONTREAL, May 14, 2015 /CNW/ - Telesta Therapeutics Inc. (TSX:TST; PNK:BNHLF) today issued its financial statements and associated Management's Discussion and Analysis (MD&A), for the nine month period ended March 31, 2015 which are now published in full on SEDAR at www.sedar.com and on the Company's website at www.telestatherapeutics.com. In addition Telesta provided key corporate updates:
- Telesta confirms that the final purchase price paid for the sale of its Animal Health Business has been determined to be $63.9 million, following the inclusion of an adjustment for working capital of $2.9 million.
- Preparation of a Biologics License Application (BLA) for MCNA, its therapy for the treatment of non-muscle invasive bladder cancer patients who have failed BCG therapy, is ongoing and remains on track for a submission by June 30, 2015.
- Cash as at March 31, 2015 together with the $2.9 million purchase price adjustment from the sale of Animal Health, additional cash proceeds from warrants exercised after March 31, 2015, and other near-term sources of cash from accounts receivable are sufficient to fund the Company's operations into the 4th quarter of calendar 2015.
Telesta Therapeutics today released its financial results for the nine month period ended March 31, 2015. These financial statements and associated Management's Discussion and Analysis (MD&A) have been posted on www.sedar.com and on the company's website. The Company's cash and near term receivables at March 31, 2015, together with current proceeds from the exercise of warrants totalled $9.7 million that will be available to fund ongoing obligations. The Company estimates that, based on the expected monthly burn rate of approximately $900 thousand and scheduled debt payments of $2.6 million, it continues to have the required liquidity to fund its operations and financial obligations into the 4th quarter of calendar 2015, but will need to bring in additional funding, through partnerships, equity and/or debt financing to continue its operations beyond that point.
Following binding discussions with the purchaser of its Animal Health division, a transaction which closed in April, 2014, both parties have agreed to a payment related to an adjustment for working capital of $2.9 million. This payment adjusts the total purchase price paid for the former Animal Health division to $63.9 million from the $64.2 million estimated at the time of closing. In addition, following quarter end, Telesta received its first payment of $600 thousand from an indemnification holdback also related to the sale of this division, with an additional $600 thousand to be received in October 2015.
Commenting on these financial statements, Dr. Michael Berendt, CEO and Chief Scientist noted: "I am very pleased with the excellent ongoing efforts of our professional team on all fronts. We are preparing to submit to the U.S. Food and Drug Administration a high quality BLA for MCNA, while simultaneously continuing to progress our discussions with potential partners and to introduce Telesta and our late-stage asset for bladder cancer to the North American institutional investor community. I am confident that we will continue to make great progress toward realizing the full commercial value and therapeutic potential of MCNA, a unique uro-oncology product."
Telesta's next investor presentation will be on June 1st, at the LD Micro-Invitational Investor Conference in Los Angeles, California. Telesta's presentation at the 2015 Bloom Burton Healthcare Investor Conference in Toronto, Ontario can be found on Telesta's website at www.telestatherapeutics.com.
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