/C O R R E C T I O N from Source -- Lorus Therapeutics Inc./
July 21 2008 - 3:24PM
PR Newswire (US)
In c6137 transmitted at 7:30e today, the news release contained
clerical errors in the Consolidated Statements of Loss. The title
of the press release also referred to fourth quarter results when
only annual results are included. The following news release
includes the corrected version of the Consolidated Statements of
Loss. Lorus Therapeutics Inc. apologizes for any inconvenience this
may have caused. Corrected copy follows: TORONTO, July 21
/PRNewswire-FirstCall/ -- Lorus Therapeutics Inc. (Lorus), a
biopharmaceutical company specializing in the research and
development of pharmaceutical products and technologies for the
management of cancer, today reported financial results for the year
ended May 31, 2008. Unless specified otherwise, all amounts are in
Canadian dollars. 2008 HIGHLIGHTS - Initiation of GLP toxicology
studies for Lorus' lead anticancer small molecule drug LOR-253. The
toxicology studies, currently underway, are designed to support the
filing of an Investigational New Drug (IND) application with the
U.S. FDA for LOR-253 to initiate a Phase I clinical study in cancer
indications. Lorus intends to submit an IND for LOR-253 by the
Q4/2008 or 1Q/2009, following successful completion of the
toxicology program in the third quarter of 2008 calendar year. -
Announced completion of a proof-of-concept clinical trial in Acute
Myeloid Leukemia (AML), and expansion of its LOR-2040 development
program in this indication, with initiation of a more advanced
Phase II clinical trial. The proof-of-concept study generated
encouraging results demonstrating safety and appropriate dosing of
the combination regimen. Notably, promising clinical responses in
patients under 60 years of age were obtained which included
complete responses in 35% of the 23 patients and significant
cytoreduction of leukemic blasts in two others. Moreover, the
clinical responses correlated with downregulation of R2, the
cellular target of LOR- 2040, and were further supported by
demonstration of intracellular LOR-2040 in circulating and bone
marrow leukemic cells. - Signed an exclusive multinational license
agreement with Zor Pharmaceuticals LLC ("ZOR") formed as a
subsidiary of Zoticon Bioventures Inc. ("Zoticon"), to further
develop and commercialize Virulizin(R) for human therapeutic
applications. ZOR is responsible for the cost of all clinical
development, regulatory submissions and commercialization of
Virulizin(R) in North and South America, Europe and Israel. Under
the terms of the licensing agreement, Lorus is entitled to receive
payments in excess of US$10 million in upfront and various clinical
and regulatory milestones payments as well as royalties that vary
from 10-20% depending on sales of Virulizin(R). Lorus also received
25% of the initial equity in ZOR. In addition, Lorus has entered
into a Service Agreement with ZOR to assist in the transfer of
knowledge for moving forward with the clinical development program
for Virulizin(R). - Commenced a development program aimed at
expanding the therapeutic application of its clinical-stage drug
LOR-2040 for the treatment of superficial bladder cancer. -
Completed a corporate reorganization resulting in approximately
$6.9 million in additional cash for Lorus without diluting the
equity interests of existing securityholders - Announced a rights
offering to Lorus shareholders to raise, if fully subscribed, gross
proceeds of $7.1 million. Each shareholder will receive one right
and 4 rights will entitle the holder to purchase one unit
consisting of one common share and 1/2 common share purchase
warrant. "We are pleased with the important milestones achieved
during fiscal 2008 including the initiation of GLP-toxicology
studies for LOR-253; the commencement of a Phase II clinical trial
for LOR-2040 in AML; and a key licensing transaction for
Virulizin(R)", stated Dr. Aiping Young, President and CEO of Lorus.
"In addition to the key scientific milestones achieved during
fiscal 2008, we have strengthened our financial position through a
$6.9 million non-dilutive financing by means of corporate
reorganization and initiation of a rights offering. The
achievements realized this year have resulted in a necessary
increase in research and development expenditures, although we
expect our overall expenditures to decrease significantly in fiscal
2009". FINANCIAL RESULTS Due to an increase in research and
development activities as described below, loss from operations
excluding the gain on sale relating to the arrangement (as
discussed below) for the year ended May 31, 2008, increased to
$12.6 million from $9.6 million in the same period last year. On
the close of the arrangement, in July 2007, the Company realized a
gain on the sale of the shares of Old Lorus in the amount of $6.3
million resulting in a net loss for the year ended May 31, 2008 of
$6.3 million ($0.03 per share). Research and development expenses
increased to $6.1 million for the year ended May 31, 2008 as
compared $3.4 million in the prior year. The increase in research
and development expenditures in the year ended May 31, 2008 is due
to a significant increase in activity within our LOR-2040 and Small
Molecule development programs, in particular, due to the
manufacturing cost of LOR-2040 needed to complete the ongoing Phase
I and Phase II clinical studies as well as future potential
development initiatives. Other contributing factors include the
initiation of an advanced Phase II clinical trial with LOR-2040 in
AML, GLP-toxicology studies with LOR-2040 for the treatment of
bladder cancer, and the advancement of our small molecule program
into GLP-toxicology studies. For the year ended May 31, 2008,
general and administrative expense was $3.9 million compared with
$3.8 million in the same period last year. General and
administrative expenditures have remained consistent with the prior
year. The Company utilized cash of $10.2 million in operating
activities in the year ended May 31, 2008 compared with $6.3
million during the year ended May 31, 2007 reflecting the increase
in research and development activities during the year. At May 31,
2008, Lorus had cash and cash equivalents, short-term investments
and marketable securities of $9.4 million compared to $12.2 million
at May 31, 2007. Lorus believes that its current cash and cash
equivalents, short-term investments and marketable securities and
interest income will be sufficient to carry out the current
research and development plans and operations through to the first
quarter of fiscal 2010. Lorus Therapeutics Inc. Consolidated
Statements of Loss (unaudited) Years Ended May 31
------------------------------------- (Canadian dollars) 2008 2007
2006
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REVENUE $ 43 $ 107 $ 26
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EXPENSES Cost of sales 2 16 3 Research and development 6,087 3,384
10,237 General and administrative 3,888 3,848 4,334 Stock-based
compensation 719 503 1,205 Depreciation and amortization of fixed
assets 317 402 771
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Operating expenses 11,013 8,153 16,550 Interest expense on
convertible debentures 1,029 1,050 882 Accretion in carrying value
of convertible debentures 1,045 935 790 Amortization of deferred
financing charges 131 110 87 Interest income (542) (503) (374)
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Loss from operation for the period 12,633 9,638 17,909
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(Gain) on sale of shares (6,299)
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Net (earnings)/loss and other comprehensive income for the period
6,334 9,638 17,909
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Basic and diluted loss per common share $ 0.03 $ 0.05 $ 0.10
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Weighted average number of common shares outstanding used in the
calculation of basic and diluted loss per share 215,084 204,860
173,523
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Note re the financial statement information above: On July 10, 2007
(the "Arrangement Date"), the Company completed a plan of
arrangement and corporate reorganization with 4325231 Canada Inc.,
formerly Lorus Therapeutics Inc., ("Old Lorus"), 6707157 Canada
Inc. and Pinnacle International Lands Inc (the "Arrangement"). As a
result of the plan of arrangement and reorganization, among other
things, each common share of Old Lorus was exchanged for one common
share of the Company and the assets (excluding certain future tax
assets and related valuation allowance) and liabilities of Old
Lorus were transferred to the Company and/or its subsidiaries. The
Company continued the business of Old Lorus after the Arrangement
Date with the same officers and employees and continued to be
governed by the same Board of Directors as Old Lorus prior to the
Arrangement Date. Therefore, the Company's operations have been
accounted for on a continuity of interest basis and accordingly,
the consolidated financial statement information above reflect that
of the Company as if it had always carried on the business formerly
carried on by Old Lorus. About Lorus Lorus is a biopharmaceutical
company focused on the research and development of novel
therapeutics in cancer. Lorus' goal is to capitalize on its
research, preclinical, clinical and regulatory expertise by
developing new drug candidates that can be used, either alone, or
in combination with other drugs, to successfully manage cancer.
Through its own discovery efforts and an acquisition and
in-licensing program, Lorus is building a portfolio of promising
anticancer drugs. Lorus Therapeutics Inc. is listed on the Toronto
Stock Exchange under the symbol LOR, and on the American Stock
Exchange under the symbol LRP. Forward Looking Statements This
press release contains forward-looking statements within the
meaning of Canadian and U.S. securities laws. Such statements
include, but are not limited to, statements relating to: financings
and corporate reorganizations, the establishment of corporate
alliances, the Company's plans, objectives, expectations and
intentions and other statements including words such as "continue",
"expect", "intend", "will", "should", "would", "may", and other
similar expressions. Such statements reflect our current views with
respect to future events and are subject to risks and uncertainties
and are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by us are inherently
subject to significant business, economic, competitive, political
and social uncertainties and contingencies. Many factors could
cause our actual results, performance or achievements to be
materially different from any future results, performance or
achievements described in this press release. Such expressed or
implied forward looking statements could include, among others: our
ability to obtain the capital required for research and operations;
the inherent risks in early stage drug development including
demonstrating efficacy; development time/cost and the regulatory
approval process; the progress of our clinical trials; our ability
to find and enter into agreements with potential partners; our
ability to attract and retain key personnel; changing market
conditions; and other risks detailed from time-to-time in our
ongoing quarterly filings, annual information forms, annual reports
and annual filings with Canadian securities regulators and the
United States Securities and Exchange Commission. Should one or
more of these risks or uncertainties materialize, or should the
assumptions set out in the section entitled "Risk Factors" in our
filings with Canadian securities regulators and the United States
Securities and Exchange Commission underlying those forward-looking
statements prove incorrect, actual results may vary materially from
those described herein. These forward-looking statements are made
as of the date of this press release and we do not intend, and do
not assume any obligation, to update these forward-looking
statements, except as required by law. We cannot assure you that
such statements will prove to be accurate as actual results and
future events could differ materially from those anticipated in
such statements. Investors are cautioned that forward-looking
statements are not guarantees of future performance and accordingly
investors are cautioned not to put undue reliance on
forward-looking statements due to the inherent uncertainty therein.
Lorus Therapeutics Inc.'s recent press releases are available
through its website at http://www.lorusthera.com/. For Lorus'
regulatory filings on SEDAR, please go to http://www.sedar.com/.
For SEDAR filings prior to July 10, 2007 you will find these under
the company profile for Global Summit Real Estate Inc. (Old Lorus).
DATASOURCE: Lorus Therapeutics Inc. CONTACT: Lorus Therapeutics
Inc., Dr. Saeid Babaei, (416) 798-1200, ext. 490,
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