News Column

Knight Reports Second Quarter 2014 Results

August 14, 2014

MONTREAL, QUEBEC--(Marketwired - Aug. 14, 2014) - Knight Therapeutics Inc. ("Knight") (TSX:GUD) today reported its financial results for the quarter ended June 30, 2014.

2nd Quarter 2014 Highlights

During the second quarter of 2014:

-- On April 10, 2014, Knight completed a private placement of Additional Special Warrants for aggregate proceeds of $180,075,000. -- On April 17, 2014, Knight received receipts for two short form prospectuses. The warrants issued in the private placements of Special Warrants dated March 19 and Additional Special Warrants dated April 10, 2014 were exercised into common shares within five business days of receipt. -- On April 29, 2014, Knight began trading on TSX under the ticker symbol GUD and delisted from TSX-V. -- On June 25, 2014, Knight issued an $850,000 secured loan bearing 15% interest per annum to Origin Biomed Inc., a company dedicated to the commercialization of the Neuragen(R) and Bionica Brands. -- On June 26, 2014, Knight entered into an agreement with Sectoral Asset Management Inc. ("Sectoral") to invest $13.9 million (US$13 million) in its private fund that invests in public and private healthcare companies. Sectoral will also assist Knight in securing preferred access to Canadian product rights for pharmaceutical products and facilitate introductions for lending opportunities between the investee companies and Knight.



Subsequent to the quarter ended June 30, 2014

-- On July 3, 2014, Knight issued a secured loan of $6.9 million (US$6.5 million) bearing an interest rate of 12% per annum to support the acquisition, by two newly formed holding companies, of Apicore LLC and Apicore US LLC which became wholly owned operating subsidiaries of the borrowers.



Second Quarter 2014 Financial Results Reported in Canadian Dollars

The Company's financial statements for the period ended June 30, 2014 have been prepared in accordance with IAS 34, Interim Financial Reporting.

For the three-month period ended June 30, 2014, the Company reported Revenues of $247,373 and Net Income of $390,617. For the six-month period ended June 30, 2014, the Company reported Revenues of $248,814 and Net Income of $314,875. As at June 30, 2014, the Company had $234,507,236 of cash and 77,764,640 common shares outstanding.

"I am pleased with our progress since inception on February 28, 2014. During these five and a half months, we have raised $255 million, listed on TSX, received FDA approval for Impavido, been awarded a priority review voucher by the FDA and concluded three business development deals. And we did this all with only three full-time permanent staff! We look forward to expanding our team and capacity to invest in low risk, high return life science opportunities." said Jonathan Ross Goodman, President and CEO of Knight Therapeutics Inc.

Conference Call Notice

Knight will host a conference call to discuss its second quarter results today at 8:30 am ET. Investors and other interested parties may call 877-223-4471 (Operator Assisted Toll-Free) or 647-788-4922 (local or international).

About Knight Therapeutics Inc.

Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and world markets. For more information about Knight Therapeutics Inc., please visit the Company's website at www.gud-knight.com or at www.sedar.com.

This press release may contain forward-looking statements and predictions. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the Company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the Company's final application for listing on TSX Venture Exchange and in two Short Form Prospectuses which can be found on SEDAR at www.sedar.com, which investors should consult for additional information. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events, except as required by law.

Neither TSX nor its Regulation Services Providers (as that term is defined in policies of TSX) accepts responsibility for the adequacy or accuracy of this release.

Knight Therapeutics Inc.

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

As at (In Canadian dollars) (unaudited) June 30, December 31, 2014 2013 $ $ -------------------------------- ASSETS Current assets Cash 234,507,236 1 Interest, royalties and other receivable 670,811 - Other current assets 175,123 - -------------------------------- Total current assets 235,353,170 1 Property and equipment 57,476 - Intangible assets 883,701 - Intangible asset held for sale 10,000,000 - Other financial assets 14,029,454 - -------------------------------- Total assets 260,323,801 1 -------------------------------- -------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accruals 1,501,718 - -------------------------------- Total current liabilities 1,501,718 - Deferred income tax liability 265,929 - -------------------------------- Total liabilities 1,767,647 - -------------------------------- -------------------------------- Shareholders' equity Share capital 255,779,700 1 Contributed surplus 750,344 - Accumulated other comprehensive income 1,711,235 - Retained earnings 314,875 - -------------------------------- Total shareholders' equity 258,556,154 1 -------------------------------- Total liabilities and shareholders' equity 260,323,801 1 -------------------------------- --------------------------------



Knight Therapeutics Inc.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In Canadian dollars except for share amounts) (unaudited) Three months Six months ended June 30, ended June 30, 2014 2014 $ $ ---------------------------------- REVENUE Royalty income 247,373 248,814 ---------------------------------- EXPENSES General and administrative 693,360 770,632 Research and development 112,736 127,773 ---------------------------------- (558,723) (649,591) Depreciation of property and equipment 6,515 7,008 Amortization of intangible assets 18,970 25,294 Interest expense 4,500 23,540 Interest income (878,744) (919,727) Other income (104,859) (104,859) Foreign exchange gain (1,210) (1,210) ---------------------------------- Income before income taxes 396,105 320,363 Income tax expense 5,488 5,488 ---------------------------------- Net income for the period 390,617 314,875 ---------------------------------- ---------------------------------- Basic and diluted earnings per share 0.006 0.009 Weighted average number of common shares outstanding Basic 63,066,993 35,725,338 Diluted 63,166,988 35,784,315 ---------------------------------- ----------------------------------



Knight Therapeutics Inc.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Canadian dollars) (unaudited) Three months Six months ended June 30, ended June 30, 2014 2014 $ $ -------------------------------- Net income for the period 390,617 314,875 Other comprehensive income to be reclassified to income or loss in subsequent periods: Change in fair value of available-for-sale financial instruments (net of tax of $265,929) 1,711,235 1,711,235 -------------------------------- Other comprehensive income for the period 1,711,235 1,711,235 -------------------------------- Total comprehensive income for the period 2,101,852 2,026,110 -------------------------------- --------------------------------



Knight Therapeutics Inc.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

For the six months ended June 30, 2014 (In Canadian dollars) (unaudited) Share Contributed capital Warrant Surplus $ $ $ --------------------------------------------- Balance on Incorporation and as at January 1, 2014 1 - - Net income and comprehensive income for the period - - - Stock based compensation expense - - 258,467 Issuance of common shares as part of Business Separation Agreement 11,909,000 - - Issuance of warrants, net of costs - 244,320,699 491,877 Deemed exercise of Special Warrants into common shares 244,320,699 (244,320,699) - Share purchase loans (450,000) - - --------------------------------------------- Balance as at June 30, 2014 255,779,700 - 750,344 --------------------------------------------- Accumulated Other Total Comprehensive Retained Shareholders' Income Earnings Equity $ $ $ --------------------------------------------- Balance on Incorporation and as at January 1, 2014 - - 1 Net income and comprehensive income for the period 1,711,235 314,875 2,026,110 Stock based compensation expense - - 258,467 Issuance of common shares as part of Business Separation Agreement - - 11,909,000 Issuance of warrants, net of costs - - 244,812,576 Deemed exercise of Special Warrants into common shares - - - Share purchase loans - - (450,000) --------------------------------------------- Balance as at June 30, 2014 1,711,235 314,875 258,556,154 ---------------------------------------------



Knight Therapeutics Inc.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(In Canadian dollars) (unaudited) Six months ended June 30, 2014 $ -------------------- OPERATING ACTIVITIES Net income 314,875 Depreciation of property and equipment 7,008 Amortization of intangible assets 25,294 Stock based compensation 258,467 Changes in non-cash working capital related to operations (364,230) -------------------- Cash inflow from operating activities 241,414 -------------------- INVESTING ACTIVITIES Purchase of property and equipment (64,484) Loan receivable (850,000) Investment in Fund (10,664,025) -------------------- Cash outflow from investing activities (11,578,509) -------------------- FINANCING ACTIVITIES Net impact of Business Separation Agreement 1,000,000 Net proceeds from warrants issuance 245,294,330 Share purchase loans (450,000) Loan from related party 2,500,000 Repayment of loan from related party (2,500,000) -------------------- Cash inflow from financing activities 245,844,330 -------------------- Increase in cash during the period 234,507,235 Cash, beginning of period 1 -------------------- Cash, end of period 234,507,236 -------------------- -------------------- The following amounts are classified within operating activities: Interest received 593,863 Interest paid 22,534 FOR FURTHER INFORMATION PLEASE CONTACT: Knight Therapeutics Inc.Jeffrey Kadanoff, P.Eng., MBA Chief Financial Officer 514-484-4831 514-481-4116 (FAX) jkadanoff@gud-knight.comwww.gud-knight.com Source: Knight Therapeutics Inc.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Marketwire (Canada)


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters