BELLEVILLE, Ontario, May 9 /PRNewswire-FirstCall/ -- Bioniche Life Sciences Inc. , a research-based, technology-driven Canadian biopharmaceutical company, today reported that the results for its third quarter of fiscal 2006 (for the period ended March 31, 2006) reported on Friday, May 5, 2006 contained errors which have now been corrected in consultation with the Company’s auditors. The correct version is attached.
These corrections reflect certain accrual and calculation inaccuracies, a revision to the presentation of the deferred government incentives and a revision to the accounting for the 10% retained interest in Bioniche Pharma Group Limited. Overall, there is no material impact on revenues or earnings/loss.
Bioniche regrets not detecting this oversight in advance of distributing the quarterly release and apologizes for any confusion or misconception it may have caused.
The Company will be hosting its quarterly conference call/audio webcast later this morning:
Tuesday, May 9, 2006 at 10:00 a.m. (EDT)
To participate in the conference call, please phone (416) 644-3433 (Toronto area) or toll-free 1-800-796-7558. A listen-only audio webcast will be available at the following locations:
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1464540 (English) http://www.cnw.ca/fr/webcast/viewEvent.cgi?eventID=1464540 (French)
or through the link on the home page of the Bioniche website (http://www.Bioniche.com)
A replay of the conference call will be available until May 16, 2006 by calling (416) 640-1917 or toll-free 1-877-289-8525 (passcode: 21186854#). The webcast will be available for replay using the above links until August 7, 2006.
About Bioniche Life Sciences
Bioniche Life Sciences Inc. is a research-based, technology-driven Canadian biopharmaceutical company focused on the discovery, development, manufacturing, and marketing of proprietary products for human and animal health markets worldwide. The fully-integrated company employs approximately 185 skilled personnel and has three principal operating divisions: Human Health, Animal Health, and Food Safety. The Company’s primary goal is to develop proprietary cancer therapies supported by revenues from marketed products in these three segments. For more information, please visit http://www.Bioniche.com.
Except for historical information, this news release may contain forward- looking statements that reflect the Company’s current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause 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 Company’s ongoing quarterly and annual reporting.
For further information, please contact: Patrick Montpetit, CA Jennifer Shea Vice-President and Corporate Communications Chief Financial Officer & Investor Relations Manager Bioniche Life Sciences Inc. Bioniche Life Sciences Inc. Telephone: (514) 697-6636 ext. 2245 Tel.: (613) 966-8058 ext. 1250 Patrick.Montpetit@Bioniche.com Cell: (613) 391-2097 Jennifer.Shea@Bioniche.com Bioniche Life Sciences Inc. Amalgamated under the laws of Ontario Unaudited CONSOLIDATED BALANCE SHEETS As at Mar 31 As at June 30 2006 2005 $ $ ASSETS Current Cash 2,794,246 3,527,408 Accounts receivable 6,002,039 7,281,010 Inventories 7,982,332 6,791,729 Prepaid expenses and deposits 1,218,439 778,273 Current assets - discontinued operations -- 12,012,577 17,997,056 30,390,997 Long-term Capital assets 10,269,851 10,422,860 Goodwill 2,049,791 2,049,791 Intangible assets, net 9,771,166 10,403,251 Deferred financing fees, net 1,807,790 838,055 Other assets - deferred costs 576,000 576,000 Investment 1,558,133 -- Long-term assets - discontinued operations -- 28,868,602 44,029,787 83,549,556 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Revolving credit facility 2,849,950 -- Accounts payable and accrued liabilities 7,130,086 7,015,841 Income taxes payable 745,723 584,101 Deferred government incentives 3,397,095 3,162,577 Current portion of senior and other long-term debt 1,774,030 3,634,986 Current liabilities - discontinued operations -- 17,276,398 15,896,884 31,673,903 Long-term Senior debt 5,907,025 2,458,946 Other long-term debt -- 10,800,000 Obligations under capital lease 1,013,483 994,457 Deferred government incentives -- 363,167 Long-term liabilities - discontinued operations -- 15,926,257 22,817,392 62,216,730 Shareholders’ equity Share capital 72,510,025 70,382,951 Other paid-in capital 4,448,576 3,038,050 Deficit (55,722,827) (52,726,240) Cumulative translation amount (23,379) 638,065 21,212,395 21,332,826 44,029,787 83,549,556 Bioniche Life Sciences Inc. Unaudited CONSOLIDATED STATEMENTS OF DEFICIT For the three and nine Last Current Last Year months ended March 31 Current Year Year Year Quarter Quarter to Date to Date 2006 2005 2006 2005 $ $ $ $ Balance, beginning of period (61,730,913) (46,701,507) (52,726,240) (37,123,268) Net income (loss) for the period 6,008,086 (3,550,965) (2,996,587) (13,129,204) Balance, end of period (55,722,827) (50,252,472) (55,722,827) (50,252,472) Bioniche Life Sciences Inc. Unaudited CONSOLIDATED STATEMENTS OF INCOME (LOSS) For the three and nine months ending March 31 Current Last Year Current Last Quarter Quarter Year to Date Year to Date 2006 2005 2006 2005 $ $ $ $ REVENUE Sales 7,444,994 7,618,014 21,181,018 21,434,466 Cost of sales 2,542,259 3,412,576 7,953,746 9,878,955 Gross profit 4,902,735 4,205,438 13,227,272 11,555,511 EXPENSES Administration 1,364,558 1,371,928 3,789,197 3,092,574 Marketing and selling 1,749,201 1,892,451 4,947,273 5,379,764 Quality assurance 239,246 243,329 757,142 686,849 Interest on long-term debt 307,487 528,951 1,306,894 1,463,295 Other interest 47,077 (15,205) 122,674 3,646 Imputed interest on convertible debentures 79,037 - 79,037 - Share ownership and bonus 114,619 64,714 347,734 494,737 Amortization of capital assets 294,652 299,489 906,014 714,804 Amortization of intangible and other assets 465,766 214,130 894,026 642,389 Amortization of deferred financing fees 437,289 68,952 727,552 242,994 Debt refinancing - - 2,493,920 - Foreign exchange (gain) loss (9,431) (62,669) 484,273 146,573 5,089,501 4,606,070 16,855,736 12,867,625 Loss before research and development and other items (186,766) (400,632) (3,628,464) (1,312,114) Research and development expenses, gross 3,554,341 3,373,965 9,713,897 9,221,532 Less government incentives, net (539,791) (307,495) (1,023,025) (998,172) Loss from continuing operations before income taxes (3,201,316) (3,467,102) (12,319,336) (9,535,474) Provision for income tax expense (146,199) (268,153) (181,661) (253,183) Loss from continuing operations (3,347,515) (3,735,255) (12,500,997) (9,788,657) Income (loss) from discontinued operations 9,355,601 184,290 9,504,410 (3,340,547) Net income (loss) for the period 6,008,086 (3,550,965) (2,996,587) (13,129,204) Basic net income (loss) per share Continuing operations (0.09) (0.10) (0.33) (0.27) Discontinued operations 0.24 0.01 0.25 (0.09) Total income (loss) per share 0.15 (0.09) (0.08) (0.36) Fully diluted net income (loss) per share Continuing operations (0.09) (0.10) (0.33) (0.27) Discontinued operations 0.18 0.00 0.19 (0.09) Total income (loss) per share 0.09 (0.10) (0.14) (0.36) Bioniche Life Sciences Inc. Unaudited CONSOLIDATED STATEMENTS OF CASH FLOWS For the three and nine Last Current Last Year months ended March 31 Current Year Year Year Quarter Quarter to Date to Date 2006 2005 2006 2005 $ $ $ $ OPERATING ACTIVITIES Loss from continuing operations (3,347,515) (3,735,255) (12,500,997) (9,788,657) Add (deduct) non cash items: Amortization 1,197,707 582,571 2,527,592 1,600,187 Non-cash interest expense 79,037 -- 79,037 -- Foreign exchange (111,002) (18,059) (7,881) (13,958) Share, option, and warrant compensation 92,130 38,893 292,841 171,729 Share bonus -- (235,104) -- 437,896 Employee share ownership plan 137,080 148,183 415,274 428,150 Debt refinancing -- -- 1,271,454 -- (1,952,563) (3,218,771) (7,922,680) (7,164,653) Net changes in non-cash working capital balances related to operations (1,795,916) (271,765) (869,709) (1,584,237) Cash used in operating activities (3,748,479) (3,490,536) (8,792,389) (8,748,890) INVESTING ACTIVITIES Payment relating to acquisition of net assets -- -- (123,120) (1,019,163) Government incentives received on account of capital assets -- -- 53,730 6,458 Proceeds on disposal of capital assets 11,888 -- 11,888 -- Purchase of capital assets (396,451) (141,075) (713,364) (888,436) Cash used in investing activities (384,563) (141,075) (770,866) (1,901,141) FINANCING ACTIVITIES Proceeds from revolving credit facility -- -- 4,051,250 -- Proceeds from term bridge loan -- -- 8,681,250 -- Preferred shares issued -- -- -- 11,674,854 Common shares issued -- -- 1,053,693 -- Proceeds from convertible term note -- -- 7,048,807 -- Financing fees - debt 34,803 -- (1,333,986) (20,968) Proceeds on account of deferred government incentives 31,055 30,320 724,916 423,618 Repayment of revolving credit facility (1,234,296) -- (1,234,296) -- Repayment of term bridge loan (8,605,500) -- (8,605,500) -- Repayment of senior and other long-term debt (151,669) (188,120) (16,398,400) (574,220) Cash provided by (used in) financing activities (9,925,607) (157,800) (6,012,266) 11,503,284 Net increase (decrease) in cash from continuing operations (14,058,649) (3,789,411) (15,575,521) 853,253 Net increase in cash from discontinued operations 14,557,273 409,980 14,842,358 762,385 Net increase (decrease) in cash for the period 498,625 (3,379,431) (733,162) 1,615,638 Cash, beginning of period 2,295,621 8,917,967 3,527,408 3,922,898 Cash, end of period 2,794,246 5,538,536 2,794,246 5,538,536
Bioniche Life Sciences Inc.
CONTACT: Patrick Montpetit, CA, Vice-President and Chief FinancialOfficer, +1-514-697-6636 ext. 2245, Patrick.Montpetit@Bioniche.com; orJennifer Shea, Corporate Communications & Investor Relations Manager,+1-613-966-8058 ext. 1250, or Cell: +1-613-391-2097,Jennifer.Shea@Bioniche.com, both of Bioniche Life Sciences Inc.
Web site: http://www.bioniche.com/
