Financial Reports 2017

Quarterly Report 2017 Q2

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Page 47 of 47

PROMETIC LIFE SCIENCES INC. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the quarter and the six months ended on June 30, 2017 (In thousands of Canadian dollars, except for per share amounts) (Unaudited) 47 The Corporation derives significant revenues from certain customers. During the six months ended June 30, 2017, there were two customers in the Bioseparations segment that accounted for 70% (47% and 23% respectively) of total revenues and one customer in the Plasma-derived therapeutics segment that accounted for 10 % of total revenues. For the six months ended June 30, 2016, there was one customer who accounted for 66% of total revenues, also in the Bioseparations segment. 14. Commitments During the quarter ended June 30, 2017, the Corporation has entered into a plasma purchase agreement whereby it has committed to purchase varying volumes of plasma until December 31, 2022. As at June 30, 2017, this represented a commitment of $102,233 (US$78,750) in aggregate. 15. Subsequent events On June 15, 2017, the Corporation entered into an agreement with a syndicate of underwriters whereby the underwriters have agreed to buy, on a bought deal basis, 31,250,000 common shares at a price of $1.70 per share for gross proceeds of $53,125. The underwriters have received a 6% cash commission on the proceeds of the bought deal. In connection with this offering, Prometic filed a final short form prospectus in all Canadian provinces on June 28, 2017. The offering closed on July 6, 2017. Concurrently with the bought deal public offering, the Corporation closed a private placement with the holder of the long-term debt for 5,045,369 common shares at a price of $1.70 per common share (the "Private Placement"). The holder of the long-term debt has used rights conveyed under the loan agreement, to settle the amounts due to the Corporation following its participation in the private placement, resulting in the extinguishment of a portion of the face value of the third OID loan which was reduced by $8,577 from $39,170 to $30,593. On August 11, 2017, the Corporation entered into definitive agreements with affiliates of Shenzhen Royal Asset Management Co., Ltd. (collectively "SRAM") to develop and commercialize PBI-4050, PBI-4547 and PBI-4425 in the People's Republic of China-(excluding Hong Kong, Taiwan and Macau). Under the agreements, SRAM will pay the Corporation an upfront payment of $12,981 (US$10,000) and a first milestone payment of $9,087 (US$7,000), as well as a further $10,515 (US$8,000) over the following years based on completion of further development and regulatory milestones. The Corporation is currently evaluating the accounting for these transactions which will be recorded during the third quarter of 2017.

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