The Conversation (0)
Kalytera Therapeutics, Inc. (TSXV:KALY, OTCQB:KALTF) (the “Company” or “Kalytera”) today reported financial results for the second quarter of 2018. (All dollars U.S. unless otherwise noted.)
Kalytera Therapeutics, Inc. (TSXV:KALY, OTCQB:KALTF) (the “Company” or “Kalytera”) today reported financial results for the second quarter of 2018. (All dollars U.S. unless otherwise noted.)
The Company recorded net income of approximately $5.9 million ($0.04 per Common Share) in the second quarter of 2018, compared with a net loss of approximately $1.9 million ($0.01 per Common Share) in the second quarter of 2017. The Company’s net income in the second quarter was primarily attributable to an increase of approximately $8.9 million in financial income in connection with convertible equity and debt instruments previously issued to investors, offset by an increase in research and development expenditures of approximately $1.3 million.
Operating Expenses
Research and development expenses increased to approximately $2.3 million in the second quarter of 2018 from approximately $1.0 million in the second quarter of 2017, due primarily to an increase in subcontract research costs incurred in the second quarter of 2018 relating to the advancement of the Company’s ongoing Phase 2 clinical trial in the prevention of acute graft versus host disease, and share-based payments, offset by decreases in salaries and benefits, as a result of the separation from the Company by the Company’s former Chief Executive Officer in June 2017, and subcontract research costs and laboratory supplies, resulting from the termination of Kalytera’s pre-clinical development programs in the treatment of bone disease.
General administration expenditures decreased in the second quarter of 2018 to $760,000 from $890,000 in the second quarter of 2017, due primarily to a decrease in audit costs as a result of filings made in the second quarter of 2017 in connection with the acquisition of Talent Biotechs, Ltd., insurance costs, patent registration costs, office and other general and administrative costs, including communication expenses, a decrease in board member fees as a result of a decrease in the number of the Company’s directors, a decrease in salaries and benefits as a result of the separation from the Company by the Company’s Chief Executive Officer in June 2017, and investor relations costs, offset by increases in consulting and management fees as a result of discounts on shares recorded in the second quarter upon issuance of Common Shares for payment for services to the Salzman Group and in legal and professional fees associated with the Company’s reporting costs and legal fees.
As of June 30, 2018, the Company had cash and cash equivalents of approximately $740,000. On August 8, 2018, the Company announced the closing of a public offering (the “Offering”) for aggregate gross proceeds of approximately $3.3 million. On August 16, 2018, the Company’s investment bank, Echelon Wealth Partners, exercised its over-allotment option in full, for additional gross proceeds of approximately $500,000. Following the close of the Offering, Kalytera made a cash payment to the former Talent shareholders of approximately $2.0 million.
The Company funds it operating costs through a combination of cash and equity payments to its creditors. The Company’s largest creditor during calendar 2018 and calendar 2019 will be the Salzman Group of Israel. Under agreements with the Salzman Group, the Company may elect to pay amounts due to the Salzman Group in either cash or through the issuance of common shares. The Company believes that it has sufficient cash to fund its cash operating costs (costs that will be paid in cash to creditors other than the Salzman Group) beyond year-end 2018, including expenses for the clinical development of its lead product program, CBD in the prevention of GVHD.
About Kalytera Therapeutics
Kalytera Therapeutics, Inc. is pioneering the development of CBD therapeutics. Through its proven leadership, drug development expertise, and intellectual property portfolio, Kalytera seeks to establish a leading position in the development of CBD medicines for a range of important unmet medical needs, with an initial focus on GVHD and treatment of acute and chronic pain.
- Website Home: https://kalytera.co/
- News and Insights: https://kalytera.co/news/
- Investors: https://kalytera.co/investors/
Cautionary Statements
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 certain forward-looking information and statements (“forward-looking information”) within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation in respect of its product candidate pipeline, planned clinical trials, regulatory approval prospects, intellectual property objectives and other statements containing the words “believes”, “anticipates”, “plans”, “intends”, “will”, “should”, “expects”, “continue”, “estimate”, “forecasts” and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risk that future clinical studies may not proceed as expected or may produce unfavourable results. Kalytera undertakes no obligation to comment on analyses, expectations or statements made by third-parties, its securities, or financial or operating results (as applicable). Although Kalytera believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond Kalytera’s control. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. Kalytera disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
Contact Information
Robert Farrell
President, CEO
(888) 861-2008
info@kalytera.co
Colwell Capital Corp.
Graeme Dick
1-403-561-8989
graeme@colwellcapital.com
Source: globenewswire.ca