Medwell Capital Reports 2011 Year-end Results

    




 EDMONTON, March 21, 2012 /CNW/ - Medwell Capital Corp.   today announced financial and operational results for the year ended  December 31, 2011. 

 2011 Highlights: 




        --  Net income from continuing operations for Q4 2011 of $0.9
            million.
        --  Restructuring efforts have substantially reduced costs and
            increased contract revenues
        --  Completed an arrangement agreement ("Arrangement") to invest
            $10 million in Spectral Diagnostics Inc. ("Spectral") and
            distribute approximately 54.3 million Common shares of Spectral
            to Medwell shareholders
        --  Invested a total of $2 million in Mimetogen Pharmaceuticals
            Inc. ("Mimetogen") during the year. Mimetogen announced
            positive efficacy and safety data from its Phase II clinical
            trial of MIM-D3 for dry eye disease




 "During 2011 we made substantial investments in two late stage  healthcare technologies and undertook some major reorganization efforts  aimed at spinning out value to our shareholders and improving income  from operations." said Kevin Giese, President and CEO of Medwell. "We  are pleased that in the fourth quarter net income from continuing  operations totaled just under $1million, as a reflection of these  efforts and improvement in our investments." 

 Financial Results: 

 The consolidated net loss from continuing operations of the Corporation  for the year ended December 31, 2011, was $11.0 million or $0.12 per  share compared with a consolidated net loss from continuing operations  of $8.0 million or $0.09 per share for the same period in the previous  year.  The results for the year ended December 31, 2011, included the  recognition of a realized loss on investments of $4.1 million on the  Corporation's investment in Spectral and expenditures of $0.6 million  for the Arrangement, as well as $1.7 million in contract services  revenue. 

 The Corporation recorded an unrealized loss of $0.6 million (2010 - $0.3  million) for the year ended December 31, 2011.  The movement is due to  changes in the fair value of the Corporation's investments. 

 A realized loss of $4.1 million was recognized for the year ended  December 31, 2011 as a result of the distribution of 54,282,834  Spectral Shares to the Medwell shareholders.The amount is the  difference between the carrying amount of the investment in the  distributed Spectral shares and the fair market value of those shares  on September 9, 2011. 

 Revenue earned from services agreements in the amount of $1.7 million  (2010 - $1.2 million) for the year ended December 31, 2011.  Included  in contract services revenue is $1.5 million (2010 - $1.2 million)  representing the agreement with Spectral. 

 Total consolidated expenses from continuing operations for the year  ended December 31, 2011, were $8.0 million as compared with $8.9  million in the year ended December 31, 2010. 

 At December 31, 2011, cash and cash equivalents, restricted cash and  short-term investments totaled $6.5 million as compared to $27.5  million at December 31, 2010.  At December 31, 2011, the Corporation  had working capital of $6.3 million as compared to $26.1 million at  December 31, 2010.  The Corporation has sufficient working capital to  meet its obligations as they come due. 

 As at December 31, 2011 there were 91,008,923 Common shares of the  Company issued and outstanding. 

 About Medwell Capital Corp. 

 Medwell Capital Corp. is a Canadian-based investment and advisory firm.  For further information please visit www.medwellcapital.com. 

 Neither TSX Venture Exchange nor its Regulation Services Provider (as  that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or accuracy of this release.   This press release may contain forward-looking statements, which  reflect the Company's current expectation regarding future events.   These forward-looking statements involve risks and uncertainties that  may cause actual results, events or developments to be materially  different from any future results, events or developments expressed or  implied by such forward-looking statements.  Such factors include, but  are not limited to, changing market conditions, the successful and  timely completion of clinical studies, the establishment of corporate  alliances, the impact of competitive products and pricing, new product  development, uncertainties related to the regulatory approval process  and other risks detailed from time to time in the Corporation's ongoing  quarterly and annual reporting.  We undertake no obligation to publicly  update or revise any forward-looking statements, whether as a result of  new information, future events or otherwise.  

   





    Medwell Capital
    Corp.
    Consolidated                                                         
    Statements of
    Financial Postion

                                                                         

    (expressed in
    thousands of                                                         
    Canadian dollars)

                                                                         

                                         December        December         January
                                              31,             31,              1,
                                             2011            2010            2010
                                                $               $               $

                                                                                 

    Assets                                                                       

                                                                                 

    Cash and cash                                                      
    equivalents                             4,339          24,841          48,656

    Investments                             7,875          12,507               -

    Restricted                                                         
    cash                                    2,210           2,665             453

    Short-term                                                         
    investments                                 -               5           2,327

    Accounts                                                           
    receivable                                334             397             775

    Prepaid                                                            
    expenses                                  149             235             112

    Property and                                                       
    equipment                                  23              84             350

                                                                                 

                                           14,930          40,734          52,673

                                                                                 

    Liabilities                                                                  

                                                                                 

    Accounts                                                           
    payable and
    accrued
    liabilities                               424           1,595           5,052

                                                                                 

                                                                                 

                                                                                 

                                                                                 

    Shareholders'                                                      
    Equity                                                                       

                                                                                 

    Share capital                         162,144         175,714         175,714

                                                                                 

    Contributed                                                        
    surplus                                12,883          12,319          10,937

                                                                                 

    Deficit                             (160,521)       (148,894)       (139,030)

                                                                                 

                                           14,506          39,139          47,621

                                                                                 

                                           14,930          40,734          52,673






  

  





    Medwell Capital Corp.
    Consolidated Statements of                                  
    Operations and Comprehensive
    Loss

                                                                

    (expressed in thousands of
    Canadian dollars and shares,                                
    except per share amounts)

                                                                

                                                     Yearsended December31,

                                                                           

                                                    2011               2010
                                                       $                  $

                                                                           

    Revenue                                                   
    Contract services                              1,654              1,150

                                                                           

    Change in fair                                            
    value of
    investments                                    4,650                236

    Operating,                                                
    general and
    administrative                                 7,807              7,260

    Stock-based                                               
    compensation                                     449              1,382

    Depreciation of                                           
    property and
    equipment                                         33                125

    Loss on disposal                                          
    of property and
    equipment                                          4                173

    Foreign exchange                                          
    (gain) loss                                     (96)                249

    Interest earned                                (149)              (234)

                                                                           

                                                  12,698              9,191

                                                                           

    Loss from                                                 
    continuing
    operations                                  (11,044)            (8,041)

    Loss from                                                 
    discontinued
    operation                                      (583)            (1,823)

    Loss and                                                  
    comprehensive
    loss for the year                           (11,627)            (9,864)

                                                                           

    Basic and diluted                                         
    loss per common
    share -
    continuing
    operations                                    (0.12)             (0.09)

                                                                           

    Basic and diluted                                         
    loss per common
    share -
    discontinued
    operation                                     (0.01)             (0.01)

                                                                           

    Basic and diluted                                         
    loss per common
    share                                         (0.13)             (0.10)

                                                                           

    Basic weighted                                            
    average number of
    common shares
    outstanding                                   91,009             91,009

                                                                           

    Diluted weighted                                          
    average number of
    common shares
    outstanding                                   91,009             91,009

                                                                           






     





    Medwell Capital Corp.
    Interim Consolidated Statements of                              
    Cash Flows

                                                                    

    (expressed in thousands of Canadian                             
    dollars)

                                                                    

                                                    Years ended December31,

                                                                           

                                                        2011           2010
                                                           $              $

    Cash provided by (used in)                                             

    Operating activities                                                   

    Net loss from continuing                                      
    operations                                      (11,044)        (8,041)

    Purchase of investments                         (13,741)       (13,000)

    Proceeds from disposal of                                     
    investments                                          152            272

    Transfer from (to)                                            
    restricted cash                                      455        (2,212)

    Net proceeds from                                             
    short-term investments                                 5          2,322

    Items not involving cash                                               

      Unrealized loss (gain) on                                   
      investments                                        604            275

      Realized (gain) loss on                                     
      investments                                      4,046           (39)

      Stock-based compensation                           449          1,382

      Depreciation of property                                    
      and equipment                                       33            125

      Loss on disposal of                                         
      property and equipment                               4            173

      Unrealized foreign                                          
      exchange gain (loss)                              (39)            177

                                                    (19,076)       (18,566)

    Net change in non-cash                                        
    working capital items                              (223)          (401)

                                                    (19,299)       (18,967)

    Investing activities                                                   

    Purchase of property and                                      
    equipment                                              -            (7)

                                                           -            (7)

    Foreign exchange gain                                         
    (loss) on cash and cash
    equivalents held in foreign
    currency                                              39          (177)

                                                                           

    Cash used in continuing                                       
    operations                                      (19,260)       (19,151)

    Cash used in discontinued                                     
    operation                                        (1,242)        (4,664)

                                                                    

    Decrease in cash andcash                                      
    equivalents                                     (20,502)       (23,815)

                                                                    

    Cash and cash equivalents -                                   
    Beginning of year                                 24,841         48,656

                                                                           

    Cash and cash equivalents -                                   
    End of year                                        4,339         24,841

                                                                           

    Cash and cash equivalents                                     
    consist of:                                                            

    Bank accounts                                      2,463          3,348

    Interest bearing deposits                                     
    and securities                                     1,876         21,493

                                                       4,339         24,841

    Supplemental cash flow                                        
    information                                                            

    Income taxes paid                                $     -        $     -

    Interest paid                                          -              -

                                                                           






   

Medwell Capital Corp.


CONTACT:  Tony HesbyMedwell Capital Corp.780-413-7152780-408-3040 FaxE-mail: [e-mail]: http://www.medwellcapital.com Ross MarshallInvestor Relations416-815-0700 ext. 238416-815-0080 FaxE-mail:[e-mail] 


    

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