Shares of Bioxel Pharma Inc. (TSX: V.BIP, Stock Forum) were hanging on by their finger nails in early afternoon trading Friday, a day after the company announced that it has insufficient cash to continue operations.
The stock was unchanged at one cent on volume of 842,000, after touching a new 52-week low of .005 cents.
In a financial statement released Thursday, the Ste. Foy, Quebec-base pharmaceutical firm said it could no longer operate as a going concern unless it can get additional financing.
From the release:
Bioxel does not currently have access to sufficient liquidities to continue its operations unless it can find additional financing in the range of $1,000,000 to $2,000,000. Although the Corporation has recently received significant purchase orders, including a purchase order for one kilogram of docetaxel, and is in discussion for the supply of several kilograms of paclitaxel in the short term, it must find financing that will enable it to maintain its operations and manufacture and deliver on the purchase orders received and be in a position to secure additional orders.
Bioxel is currently reviewing available alternatives to deal with the situation.
As a result, the Corporation must postpone the filing of its interim financial statements for the quarter ended September 30, 2008.
There was mixed reaction to the news on the Bioxel BullBoard,
On Thursday afternoon, lovesmoney cited the company’s Q2 report, which said:
“After reviewing its strategic plan and the related budget and forecasts, management believes that the Company currently would have sufficient cash and cash equivalents to fund planned expenditures and execute its focused strategy for at least the next twelve months. Management expects to derive additional cash through paclitaxel business agreements and development of the docetaxel market. It should be noted in this regard that business development efforts are partly supported by the Investissement Québec business financing program granting could reach up to.
The poster then added, “good post virginie. I don't get how a company can they have enough resources for the next 12 months and 3 months later say they need between 1-2 million. It's ridiculous. Their accountant should lose his job.”
The same poster then added, “Anybody else notice how low the volume was considering the announcement. Bip didn't even trade 1% of its stock today.
“A few numbers 85 million shares
“Today’s volume 620 000
“620 000X 0,015 (trade average) = 9300$
“I have no clue what this all means but it's quite interesting.
“PS I almost bought some stock yesterday. I'm very glad I didn't.”
Under the heading “SOME INTERESTING #'S”, deccaman noted:
“Bioxel's first six-month period operating activities for 2008 used cash flows of $1.6 million, reflecting the net loss of $887,000 including non-cash items and a $755,000 increase in changes in working capital items. Cash flows used for operations were mainly allocated to business development efforts, research and development, financial expenses and the costs of the underlying administrative structure.
“For the six-month period ending June 30, 2008, the Corporation showed a monthly absorption rate of cash ('burn rate') of $148,000 compared with $196,000 for the equivalent period a year earlier, for a progression rate of 24%.
“During the first six-month period of 2008, Bioxel also obtained an Investissement Quebec guarantee for a specific working capital credit facility of $1.0 million granted by its financial institution. This credit is to be allocated to the financing of the Corporation's export contracts subject to firm orders from its customers. This additional financial leverage bolsters Bioxel's working capital and will help it to further increase the development of its sales. This financing also enhances the Corporation's capacity to meet customer demand in connection with the launch of docetaxel. As of June 30, 2008, the working capital credit facility available totaled $560,000.
“THERE IS ABOUT A $200,000 DIFF BETWEEN THE BURN RATE AND THE BALANCE OF CREDIT AVAILABLE??
“ALSO DID THEY NOT RECIEVE ANY $$$ FROM ORDERS SINCE THAN??
“WHAT WOULD HAPPEN TO THE PATENTS AND INT PROPERTY FOR THESE PRODUCTS? NO VALUE????
To which hasta_siempre responded:
“1@ lovesmoney: take a look to www.fondsftq in rapport annuel 2008 p.67 shares: 5 020 000$
loans: 1 000 000$
“@ Ruffyduffy
I find it to.
“For myself I don't understand that aggressiveness just because someone did inbox somebody with thoughts looking more like pumping or ads. So what!
“@ Decca
maybe they "sell today, but will be paid in twelve months" like our consumers do.
I don't know also, if they got the money they were hoping for, in their last warrants issuing, on Sept 10th.”
“Doesn’t Make Sense,” said Pincher.
“SEDI Report at www.sedi.ca shows an actual insider purchase by Pierre Lacroix on Nov. 20th - 10 day ago;
“Anyway, other Insider holdings include FSTQ - 12,648,034 and Solutions Technoloquiques International (STI) 7,025,999
“Why have they not unloaded??”
