TORONTO, ONTARIO--(Marketwire -04/26/12)- Stem Cell Therapeutics Corp. (SSS.V - News) ("SCT" or the "Company") a life sciences development company of stem cell-related therapeutics, today reported its operational and financial results for the 2011 fiscal year, ended December 31.
The second half of 2011 was dedicated to repositioning the Company as the commercialization partner of choice for early-stage stem cell-related technologies in regenerative medicine for Canadian and international research institutions. SCT is actively working towards identifying possible acquisitions of stem cell-related technologies from research institutions or other private companies who are unable to access the public capital markets.
In December 2011, the Company announced important organizational changes resulting in a reduction of overhead expenses. The reorganization of the Company's management team positioned SCT as a fully operational life sciences development company. In addition to the CEO function, positions such as Chief Financial Officer, Chief Medical Officer, Vice President of Development, and Director of Intellectual Property have been filled. The cost of maintaining this fully-staffed organization has been minimized by retaining the executives on an as-needed basis.
The Company continues to actively manage its existing patent portfolio, underpinning the potential products from the research of Dr. Sam Weiss of the University of Calgary. The trial in Traumatic Brain Injury continues to advance at Foothills Medical Centre. Health Canada has approved the amendments to the clinical protocol which, we have been advised, provides the prospect of completing patient enrolment this calendar year. In addition, SCT is currently pursuing strategies to drive further clinical development in our stroke and multiple sclerosis indications.
"With the reorganization complete, our principal focus continues to be the identification for acquisition complementary technologies, or companies, in the stem cell space that will permit us to raise additional capital refreshing our story in the expectation of restoring shareholder value," said Mr. David Allan, Executive Chairman of Stem Cell Therapeutics. "Ideally, this restoration of value will provide further resources to allow us to continue the advancement of our legacy assets from Dr. Sam Weiss. We have reviewed a number of prospects from around the world and are dedicated to discovering stem cell-related technologies and companies that meet our requirements for acquisition and commercialization."
Highlights of Financial Results
Net loss, excluding non-cash items, for the three months ended December 31, 2011, was $646,467 compared to a loss of $680,347 in 2010 and $1,919,763 compared to $3,678,108 for the corresponding 12 months. Net loss reported for the three months ended December 31, 2011, was $1,456,913 compared to a loss of $785,809 in 2010 and $3,173,947 compared to a loss of and $4,305,867 for the corresponding 12 months in 2010. The decrease in net loss for the year ended December 31, 2011 resulted mainly from reduced clinical trial activity in 2011 and lower administrative salaries and overhead expenses resulting from cost management programs, partially offset by non-cash charges for impairment on intangible assets.
On March 2, 2011 the Company filed a final, short-form, base shelf prospectus with the securities commissions in each of the provinces of British Columbia, Alberta, Manitoba, Ontario and Nova Scotia that permits it to sell common shares, warrants, or units for aggregate proceeds of up to $15 million during the following 25 months in those provinces. The prospectus provides the Company with a flexible and efficient approach for completing future financings for research initiatives and development. On March 24, 2011, the Company completed a capital raise as part of a shelf prospectus supplement of 18,181,819 Units at a price of $0.11 per Unit, for aggregate gross proceeds to the Company of $2,000,000.
The Company's cash and cash equivalents totaled $2,696,764 at December 31, 2011. Currently management believes there are sufficient resources to complete the strategic review of the Company's options and to implement a definitive program of development.
Outstanding securities as of December 31, 2011 totaled 186,619,359 common shares, 10,363,636 common share purchase warrants and 11,101,944 common share options.
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Stem Cell Therapeutics Reports 2011 Year End Results