A recent PR gave a status of Lorus:
Maybe they can stay in business and prosper.
"In June 2009, the Company reached a settlement with TEMIC with respect to the purchase and settlement of the $15.0 million convertible debentures. Under the agreement, Lorus purchased all of the debentures from TEMIC for a $3.3 million cash payment on close of the transaction, the assignment of the rights under the license agreement with ZOR Pharmaceuticals, LLC (ZOR), sale of intellectual property associated with Virulizin and sale of Lorus' shares in its wholly owned subsidiary Pharma Immune Inc. which holds an equity interest in ZOR. Under the agreement, Lorus will be entitled to 50% of any royalties received under the ZOR license agreement and 50% of the deal value of any transaction completed in territories not covered by the ZOR license agreement. Lorus also retains a perpetual, royalty free license for the animal use of Virulizin.
FINANCIAL RESULTS
Our loss from operations for the year ended May 31, 2009 decreased to $9.3 million ($0.04 per share) compared to $12.6 million ($0.06 per share) during the same period in fiscal 2008. During the year ended May 31, 2009 the Company recorded a gain on sale of shares related to the Arrangement (described below) of $450 thousand that resulted in a net loss and other comprehensive loss of $8.9 million ($0.04 per share) compared to a gain on the sale of the shares related to the Arrangement in the amount of $6.3 million resulting in net loss and other comprehensive loss for the year ended May 31, 2008 of $6.3 million ($0.03 per share).
The decrease in net loss from operations for the year ended May 31, 2009 compared with the prior year is due primarily to lower research and development costs of $2.5 million resulting from less spending on GLP-toxicity studies as well as drug manufacturing costs, lower general and administrative costs of $757 thousand due to reduced legal costs as well as lower stock based compensation costs of $273 thousand as a result of one time option grants in the third quarter of 2008 and option modification costs incurred in the second quarter of 2008. Interest income decreased by $272 thousand in 2009 to $270 thousand as a result of lower cash and investment balances and lower interest rates.
We utilized cash of $7.2 million in our operating activities in the year ended May 31, 2009 compared with $10.2 million in the prior year. The decrease is primarily a result of a reduced net loss offset by lower accounts payable and accrued liabilities balances in the current year.....
At May 31, 2009, Lorus had cash, cash equivalents and short-term investments totaling $5.9 million compared to $9.4 million at May 31, 2008. Working capital (representing primarily cash, cash equivalents, short term investments and other current assets less current liabilities which included the secured convertible debenture which were due October 6, 2009) at May 31, 2009 was a deficiency of $9.1 million as compared to a surplus of $8.0 million at May 31, 2008. Subsequent to the year-end Lorus repurchased the entire 15.0 million of secured convertible debentures for $3.3 million in cash and other consideration described above.
Following the extinguishment of the secured convertible debentures, management has forecasted that the Company's current level of cash, cash equivalents and short-term investments will not be sufficient to execute its current planned expenditures for the next twelve months without further investment. The Company is currently in discussion with several parties with a view to obtaining additional
funding.
***** Management believes that it will complete one or more of these arrangements in sufficient time to continue to execute its planned expenditures.*****
However, there can be no assurance that the capital will be available as necessary to meet these continuing expenditures, or if the capital is available, that it will be on terms acceptable to the Company."
Norman
