(Canadian dollars, except where noted)
MONTREAL, Sept. 14, 2015 /PRNewswire/ - Telesta Therapeutics Inc. (TSX: TST) (PNK: BNHLF) today issued its annual consolidated financial statements and associated Management's Discussion and Analysis (MD&A), for the fiscal year ended June 30, 2015 which are now published in full on SEDAR (www.sedar.com) and on the Company's website at www.telestatherapeutics.com. In addition Telesta provided key corporate updates:
- Significantly strengthened balance sheet following U.S. private placement and subsequent warrant exercise activity
- Successful execution of strategic business plan
- Change in board of director membership
- Annual meeting date and venue published
The Company's cash and near term receivables at June 30, 2015 was $6.5 million. Subsequent to year-end, the Company announced a U.S.-led private placement of US$28.6 million ($37.4 million) and, as of September 4, 2015, receipt of proceeds of $2.7 million from the exercise of 7.4 million common share warrants. Telesta also reported that as of September 4, 2015, there were 12.3 million of warrants due to expire before the end of September, 2015, with an exercise price of $0.40 or less. If all of these warrants were to be exercised prior to their maturity, the company would issue an additional 12.3 million shares in return for proceeds of $4.9 million. Assuming all of these warrants are exercised, Telesta would expect to have a cash position to fund ongoing operations of approximately $45 million, based on current cash resources on hand.
Telesta anticipates that its current burn rate will increase significantly, as the Company prepares for the commercial launch of MCNA in 2016. These increased expenditures will include ongoing and new consulting mandates related to the regulatory advancement of MCNA, increased spending at Telesta's manufacturing site, in Montreal Canada, as the facility transitions to commercial production and expenditures related to the establishment of U.S.-based commercial infrastructure, as the Company prepares for commercial launch in 2016.
Commenting on these recent developments, Dr. Michael Berendt, Telesta's Chief Executive Officer and Chief Scientist noted: "Establishing our own commercial sales operations in the U.S. clearly positions Telesta as a U.S. speciality pharma company, anchored by MCNA, our drug for high grade non-muscle invasive bladder cancer patients. We will, over the next several quarters, be working hard on multiple fronts, to continue our dialogue with the US FDA around the potential approval of MCNA, to establish a lean, but efficient U.S. sales infrastructure and to identify the best path forward to add a U.S. listing for our common shares. These significant achievements and planned activities are the culmination of the systematic and successful execution of our business plan to divest our non-core assets and to become a focused human health company that delivers value to our shareholders.
In addition, Mr. James Rae, Chairman of the Board of Telesta stated: "I am very pleased to announce the appointment of Mr. Warren Whitehead to our board of directors where he has also been elected as Chairman of our audit committee. Mr. Whitehead has had a long and distinguished career as a senior pharma and biotechnology executive and has previously led efforts to secure U.S. listings for Canadian public companies.
I am also announcing with regret the resignation of Mr. Rod Budd, from our board of directors, effective June 30th, 2015. His resignation was accepted with great reluctance, as Rod has played a constant and critical role in helping us achieve our strategic vision. That being said, he has graciously resigned in order to ensure that his former position as a partner at Ernst and Young (where he led the Canadian biotechnology practice) did not in any way hamper our future efforts to explore a potential U.S. listing because of differences between U.S. and Canadian securities laws related to auditor independence."
The Company's Annual and Special Shareholders Meeting will be held at 10 am, November 12, 2015 in the Chapleau ABC Room at Norton Rose Fulbright Canada, LLP at 1, Place Ville-Marie, suite 2500, Montreal, Quebec, H3B 1R1. Shareholders will be asked to vote on a number of regular and special resolutions including a proposal to permit a future share consolidation should such a consolidation be necessary or desirable to permit or facilitate a listing of the Company's common shares on a U.S. exchange.
About Telesta Therapeutics Inc.
Telesta Therapeutics Inc. is a late stage therapeutics company with near term commercial potential. The Company recently submitted a Biologics License Application (BLA) with the FDA for MCNA, its drug for high risk non-muscle invasive bladder cancer, and has been granted Priority Review with a PDUFA date of February 27, 2016. Telesta is focused on the manufacturing, marketing and licensing/acquisition of proprietary and innovative therapies for the global health market. The Company's primary goal is to develop and commercialize products in the United States that advance human health and increase shareholder value. For more information, please visit www.telestatherapeutics.com
Except for historical information, this news release may contain "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws that reflect the Company's current expectation regarding future events. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while, considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements and information. These forward-looking statements and information 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. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise. All written and oral forward-looking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.
SOURCE Telesta Therapeutics Inc.