Bionor H1 2016 Interim Financial Report
(Thomson Reuters ONE) -
23 AUGUST 2016
BIONOR PHARMA ASA
INTERIM FINANCIAL REPORT
1 JANUARY - 30 JUNE 2016
UNAUDITED
HIGHLIGHTS Q2 2016
In the second quarter of 2016, Bionor continued its preparation of upcoming
trials. A strategic and financial review was initiated and an outline for
funding of the company's operations was announced end-May. The company's Board
of Directors reiterated its strategy to advance Vacc-4x in clinical development
in order to develop a possible functional HIV cure.
* The positive results from the clinical trial REDUC Part B was published in
the peer-reviewed and highly recognized journal The Lancet HIV
* Approval of clinical trial applications for BIOSKILL was granted by
regulatory authorities in Germany, France and Australia. An IND application
for the U.S. Food and Drug Administration (FDA) is planned for submission
later in August 2016
* The Board decided to put on hold additional BIOSKILL related activities
until alternative and less capital demanding development paths have been
explored for functional HIV cure with Vacc-4x at its core
* Significant cost saving initiatives have been initiated by the Board,
including cancellation or sublease of offices in the US, Denmark and Norway.
Currently expected savings of approximately NOK 6 million per quarter when
fully implemented by 1 January 2017, excluding any effect of organizational
changes implemented in H2 2016 (see below)
* Total contractual liabilities have been significantly reduced from NOK 32.5
million in Q1 2016 to 7.6 million in Q2 2016
* At the company's annual general meeting on 22 April 2016, a number of
resolutions were rejected by the shareholders. An extraordinary general
meeting 6 June 2016 handled the rejected proposals
* Board member Steen Krøyer was elected on 22 April 2016 and board member
Helene Jebsen Anker was elected on 6 June 2016. Board members Benedicte
Fossum, Kirsten Drejer and Jerome B. Zeldis resigned from the Board on 28
April 2016
* On 26 April 2016, the company announced that Dr. David Horn Solomon and
Bionor's Board of Directors had agreed that Dr. David Horn Solomon on the
same day would leave his position as Chief Executive Officer of Bionor
Pharma ASA, owing to a shareholder led change in company strategy
* The Board appointed MSc. Pharmacist Unni Hjelmaas as acting CEO on 27 April
2016
* Net cash flow in Q2 2016 was NOK -29.3 million (Q2 2015: NOK -19.7 million)
* Cash and cash equivalents at 30 June 2016 was NOK 12.4 million (30 June
2015: NOK 55.5 million).
EVENTS AFTER THE BALANCE SHEET DATE
On 18 August 2016, the company announced that it had raised a total of NOK 105
million in new equity by an agreement with certain new investors regarding full
subscription of a NOK 52.5 million private placement, subject to approval at an
extraordinary general meeting 9 September 2016, as well as a proposed,
subsequent, fully underwritten rights offering of NOK 52.5 million. Following
completion of the private placement, the company will be fully funded under the
current strategy for no less than 12 months. The company's main shareholder has
committed to vote in favor of the private placement and the rights offering, and
not to sell any Bionor shares prior to the extraordinary general meeting.
The current strategy of Bionor is to further advance Vacc-4x in clinical
development to develop a functional cure for HIV. As a consequence of the new,
expected ownership structure following the private placement and subsequent
fully underwritten rights offering, a new Board of Directors will be elected at
the extraordinary general meeting on 9 September 2016.
Accordingly, the company's strategy will be evaluated by the new Board of
Directors, which may lead to a reassessment of the company's current short and
long-term strategies. Until such further assessments have been undertaken all
planning of clinical trials is put on hold.
In connection with the agreement with certain new investors regarding the
private placement and fully underwritten rights offering, all operations in
Denmark and the U.S. have been terminated or are in the process of being
terminated, and the following has been agreed with regard to the company's
management and key employees:
* SVP Chief Strategy and Business Officer, Kamilla Rolsted, and VP for
Investor Relations and Communications, Jørgen Fischer Ravn, agreed with the
company that their employment would discontinue from and including 1
September 2016. SVP General Counsel and Chief Patent Officer Barbara Ruskin
will continue to provide services to the company on a part-time consultancy
basis and CFO Jens Krøis will continue his role as CFO in the company on a
full-time consultancy basis until 31 December 2016.
Per S. Thoresen, Chairman of the Board of Directors, commented:
"On behalf of the company and the Board of Directors, I am very pleased to
confirm that we have succeeded in raising more than NOK 100 million from high
quality investors at a decisive moment in the company's history. The Management,
Board of Directors and its advisors have looked at various options to strengthen
the company's financial situation, and are confident that the proposed solution,
which is supported by the company's main shareholder is in the best interest of
Bionor and its shareholders. The completion of the private placement and rights
offering will create a solid financial environment for Bionor's continued
clinical activities after a long period with uncertainty."
FINANCIAL GUIDANCE FOR 2016
For the full year 2016, Bionor now expects a Core cost base of NOK 52-59
million. Previously, a Core cost base of NOK 58-66 million was expected. The
reduced Core cost base is due to cost saving initiatives implemented in Q2
2016. Currently, expected savings will amount to approximately NOK 6 million per
quarter when fully implemented by 1 January 2017, excluding any organizational
changes implemented in H2 2016.
Following the private placement of NOK 52.5 and subsequent fully underwritten
rights offering of NOK 52.5 million, the company will be fully funded under the
current strategy for no less than 12 months. The Core cost base is defined as
Employee Benefit Expenses plus Other operating expenses.
CONTACT INFORMATION
Per S. Thoresen, Chairman of the Board of Directors, +47 906 14 620
Unni Hjelmaas, Acting CEO, +47 915 19 651, uh(at)bionorpharma.com
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
PLEASE SEE THE FULL REPORT IN THE ATTACHED PDF.
Bionor H1 2016 Interim Financial Report:
http://hugin.info/131219/R/2036586/758685.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Bionor Pharma ASA via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 23.08.2016 - 08:00 Uhr
Sprache: Deutsch
News-ID 490542
Anzahl Zeichen: 7858
contact information:
Town:
Oslo
Kategorie:
Business News
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