Medwell Capital reports 2012 first quarter results

    




 EDMONTON, May 29, 2012 /CNW/ - Medwell Capital Corp.  today  announced financial and operational results for the first quarter ended  March 31, 2012. 

 First Quarter Highlights:  





    -   Subsequent to the end of the quarter, Mimetogen Pharmaceuticals
        presented its positive Phase II data for MIM-D3 in dry eye disease
        at the Annual Meeting of the Association for Research in Vision and
        Ophthalmology

    -   Recruited Chief Financial Officer with substantial venture capital
        and entrepreneurial experience

    -   Loss from continuing operations reduced by $0.6 million, primarily
        due to cost reduction efforts






  

 "Mimetogen is progressing from positive Phase II results into late stage  clinical trials and we look forward to helping Garth and the team as  they choose an optimal path to develop and commercialize MIM-D3," said  Kevin Giese. "Our other primary investee, Spectral Diagnostics,  continues to enroll its Phase III trial aimed at treating severe sepsis  and septic shock. We are actively supporting Spectral's efforts and are  excited about the value that this theranostic solution could bring to  society as well as to Medwell shareholders." 

 Financial Results: 

 The consolidated net loss from continuing operations of the Corporation  for the three months ended March 31, 2012 was $1.8 million compared  with a consolidated net loss from continuing operations of $2.4 million  for the same period in the previous year. 

 Loss and comprehensive loss for the three months ended March 31, 2012  was $1.9 million, or $0.02 per share compared to $2.8 million or $0.03  per share for the same period in the previous year. The results for the  three months ended March 31, 2012 included the recognition of a loss  from discontinued operation of $0.1 million compared to $0.4 million in  the same period in the previous year. Revenue earned from services  agreements for the three months ended March 31, 2012 was $0.4 million  (2011 - $0.4 million). Included in contract services revenue is $0.4  million from the agreement with Spectral ($0.4 million 2011).Total  consolidated expenses from continuing operations for the three months  ended March 31, 2012 were $2.2 million compared with $2.9 million for  the same period last year. 

 At March 31, 2012, cash and cash equivalents and short-term investments  totaled $12.8 million compared with $14.4 million as of December 31,  2011. During the three months ended March 31, 2012 the cash outflows  incurred in the operation of the Corporation were $0.5 million (2011 -  $4.1 million) including $0.16 million in extraordinary costs associated  with corporate reorganization and advisory services (net $0.34  million); and, cash outflows used in discontinued operations of $0.1  million (2011 - $0.3 million).The Corporation has sufficient working  capital to meet its obligations as they come due. 

 Kevin Giese comments: "The loss for the quarter primarily reflects the  market fluctuations in the value of our investments. Taking the long  term view, our two major investments, Mimetogen and Spectral continue  to progress towards value creating milestone events over the next few  years. As to the cash burn, we are pleased to see that the $0.34  million net cash outflow from ongoing operations for the quarter is  approaching our target rate, while recognizing that we continued to  incur some small costs associated with the past reorganization efforts  and review of new technologies." 

 As at March 31, 2012 there were 91,008,923 Class "A" 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. 
    Interim Condensed Consolidated Statements of Financial Position
    (Unaudited)

                                                                         

    (expressed in thousands of Canadian                                  
    dollars)

                                               March 31,   December 31,  
                                                    2012           2011
                                                       $              $

                                                                         

    Assets                                                               

                                                                         

    Cash and cash equivalents                      3,756          4,339  

    Investments                                    6,818          7,875  

    Restricted cash                                2,210          2,210  

    Accounts receivable                              348            334  

    Prepaid expenses                                  45            149  

    Property and equipment                            19             23  

                                                                         

                                                  13,196         14,930  

                                                                         

    Liabilities                                                          

                                                                         

    Accounts payable and accrued liabilities         350            424  

                                                                         

                                                                         

                                                                         

    Guarantees                                                           

                                                                         

    Shareholders' Equity                                                 

                                                                         

    Share capital                                162,144        162,144  

                                                                         

    Contributed surplus                           13,113         12,883  

                                                                         

    Deficit                                    (162,411)      (160,521)  

                                                                         

                                                  12,846         14,506  

                                                                         

                                                  13,196         14,930  






  

  





    Medwell Capital Corp. 
    Interim Condensed Consolidated Statements of              
    Operations and Comprehensive Loss
    (Unaudited)

                                                              

    (expressed in thousands of Canadian dollars)    

                                                   Three-month periodended
                                                                 March 31,

                                                                          

                                                      2012            2011
                                                         $               $

                                                                          

    Revenue                                                               

    Contract services                                  375             439

                                                                          

                                                                          

    Change in fair value of investments              1,057           1,149

    Operating, general and administrative              893           1,468

    Stock-based compensation                           223             198

    Depreciation of property and equipment               4              11

    Loss on disposal of property and equipment           -               3

    Foreign exchange loss                               31              78

    Interest earned                                   (13)            (56)

                                                                          

                                                     2,195           2,851

                                                                          

    Loss from continuing operations                (1,820)         (2,412)

    Loss from discontinued operations                 (70)           (410)

                                                                          

    Loss and comprehensive loss                    (1,890)         (2,822)

                                                                          

    Basic and diluted loss per common share -       (0.02)          (0.03)
    continuing operations

                                                                          

    Basic and diluted loss per common share -            -             -  
    discontinued operations

                                                                          

    Basic and diluted net loss per common share     (0.02)          (0.03)

                                                                          

    Basic and diluted weighted average number of    91,009          91,009
    common sharesoutstanding

                                                                          

                                                                          

                                                                          

                                                                          

                                                                          

                                                                          






  

  





    Medwell Capital Corp. 
    Interim Condensed Consolidated Statements                     
    of Cash Flows
    (Unaudited)

                                                                  

    (expressed in thousands of Canadian                           
    dollars)

                                                    Three-month periodended
                                                                  March 31,

                                                                           

                                                        2012           2011
                                                           $              $

    Cash provided by (used in)                                             

    Operating activities                                                   

    Net loss from continuing operations              (1,820)        (2,412)

    Purchase of investments                                -        (2,861)

    Proceeds from disposal of investments                  -            152

    Purchase of short-term investments                     -          (151)

    Items not involving cash                                               

         Unrealized loss on investments                1,057          1,233

         Stock-based compensation                        223            198

         Depreciation of property and                      4             11
         equipment

         Loss on disposal of property and                  -              3
         equipment

         Unrealized foreign exchange gain                  -             77

                                                       (536)        (3,750)

    Net change in non-cash working capital                16          (374)
    items

                                                       (520)        (4,124)

    Foreign exchange loss on cash and cash                 -           (78)
    equivalents held in foreign currency

                                                                           

    Cash used in continuing operations                 (520)        (4,202)

    Cash used in discontinued operations                (63)          (345)

    Decrease in cash and cash equivalents              (583)        (4,547)

    Cash and cash equivalents - Beginning              4,339         24,841
    ofperiod

                                                                           

    Cash and cash equivalents - End ofperiod           3,756         20,294

    Cash and cash equivalents consistsof                                   

    Bank accounts                                      2,003          1,706

    Interest bearing deposits and securities           1,753         18,588

                                                       3,756         20,294

      Supplemental cash flowinformation                                    

         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.comRoss MarshallInvestor Relations416-815-0700 ext. 238416-815-0080 FaxE-mail: [e-mail] 


    

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