ISAubject:
ISOTECHNIKA INC. ANNOUNCES THIRD QUARTER 2001 FINANCIAL RESULTS
Date:
Mon, 26 Nov 2001 09:13:52 -0700
From:
sgillis@isotechnika.com
To:
csmith@tomharris.bc.ca
Quarter highlighted by successful closing of $25 million special warrant financing and further clinical development of ISATX247
Edmonton, Alberta, November 23rd, 2001 ISOTECHNIKA INC. (TSE:ISA) today reported financial results for its third quarter ended September 30th, 2001. This quarter was highlighted by the successful closing on July 19th, 2001 of the $25 million bought deal special warrant financing and was marked by the commencement of our Phase 2 clinical trials for ISATX247 in kidney transplantation and psoriasis.
A major milestone was achieved in August of this year when ISATX247 was administered to a kidney transplant patient for the first time. The clinical development of ISATX247 continues to proceed well, said Dr Randall Yatscoff, President and Chief Operating Officer of Isotechnika Inc. The recruitment of patients for both the kidney transplant and psoriasis trials is ongoing. To enhance patient enrollment in the trials, the Company has recruited Dr Anthony Broski, a transplant physician from the University of Alberta as Vice-President of Medical Affairs. The company also presented trial results of ISATX247 at a number of international meetings in the U.S. in the fall of this year also facilitating patient recruitment.
Financial results for the third quarter ended September 30, 2001 reflect a consolidated net loss from operations of $3.3 million or $0.07 per share compared to a net loss of $2.1 Million or $0.06 per share for the three month period ended August 31, 2000. The net loss for the nine months ended September 30, 2001 was $11.4 million or $0.24 per share compared to $5.7 million or $0.16 per share for the nine months ended August 31, 2000.
With the scheduled progression of ISATX247 into the Phase 2 trials, investment into research and development increased to $2.7 million for the three months ended September 30, 2001, compared to $1.7 million for the three months ended August 31, 2001. For the nine months ending September 30, 2001 the Company invested $ 9.4 million in research and development compared to $4.2 million for the nine months ended August 31, 2000.
As at September 30, 2001 the Company had $41.8 million in cash and short-term investments. The successful $25 million special warrant financing and the exercise of 1.1 million share purchase warrants for proceeds of $4.6 million were major contributors to this strong financial position. Subsequent to the reporting period, Isotechnika received an additional $15.3 million on the exercise of 3.8 million share purchase warrants into common shares at $4.00 per share. In total, 96% of the share purchase warrants were exercised into common shares at $4.00 per share for gross proceeds of $19.9 million.