PROTEIN
POLYMER TECHNOLOGIES REPORTS FIRST QUARTER 2005 FINANCIAL
RESULTS
- Highlights:
- PPTI announced the appointment of William N. Plamondon III as Chief
Executive Officer
- In April, PPTI completes a $7.75 million financing, thus eliminating
approximately $1.2 million in short term debt and increasing working
capital by approximately $6 million
- First quarter total revenues were $513,000; net operating loss for
the quarter was $522,000, down from $851,000 in the 1st Quarter of 2004.
SAN DIEGO, May 20 -- Protein Polymer
Technologies, Inc. (OTC Bulletin Board: PPTI), announced
today financial results for the first quarter ended March
31, 2005, including
proforma balance sheet adjustments to show the effect of
an approximately
$7.75 million equity financing completed on April 15, 2005.
The net loss applicable to common shareholders for the
quarter ended March 31, 2005 was $1,072,000 ($0.03 per
share), compared to a net loss of $921,000 ($0.02 per share),
for
the same
period in 2004. This net loss and the per share amounts
include accumulated
dividends related to the Company's preferred stock, and
an "imputed
dividend" charge
of $482,000 recorded in connection with a warrant exercise
price reduction and issuance of new warrants
to holders of Series G Convertible Preferred Stock.
Total revenue was $514,000 for the quarter ended March 31, 2005, compared to
$191,000 for the same period in 2004. The contract revenue primarily represents
research
and development payments and receivables from Spine Wave,
Inc.
for the development of an injectable spinal disc repair product for the
treatment
of lower back pain. The increase in contract and licensing revenue
from
the same period in 2004 is due primarily to a $250,000 benchmark payment
from
Genencor International, our licensee in the fields of non-medical and personal
care products.
Operating expenses for the quarter were $1,036,000, as compared to $1,042,000
for the same period in 2004. When additional capital becomes available, expenses
are expected to rise in subsequent quarters due to the increased expenditures
for expanded human clinical testing and patient follow-up of the
Company's lead product candidates currently in development.
As of March 31, 2005, PPTI had a $1,646,000 working capital deficit compared
to
a working capital deficit of $1,532,000 as of December 31, 2004.
PPTI's
cash as of March 31, 2005 was $40,000, compared to $82,000 on December
31, 2004.
In April, 2005, the Company completed an equity financing with a group of individual
and institutional investors for the private placement of shares of the Company's
common stock issuing a total of 23,556,225 shares of common stock
at
price of $0.33 per share, for aggregate total proceeds of $7,773,556 (including
approximately $1,200,000 of converted short-term promissory bridge
notes previously
issued by the Company to certain of the Initial Investors),
together
with warrants for the purchase of an aggregate of approximately 11,778,110
shares
of common stock at an exercise price of $0.50 per share.
William N. Plamondon III, Chief Executive Officer of Protein Polymer Technologies,
commented, "Recent events have positioned us to make significant
progress toward commercialization of our current products, and enhance our ability
to
capitalize on our large intellectual property portfolio."
Contacts:
J. Thomas Parmeter, Ph.D.
Chairman
Protein Polymer Technologies, Inc.
(858) 558-6064
info@ppti.com |
Erin Davis
Director of Communications and Investor Relations
Protein Polymer Technologies, Inc.
(858) 558-6064 x 120
edavis@ppti.com
|
About
Protein Polymer Technologies
Protein Polymer Technologies,
Inc., is a San Diego-based company focused on developing
bioactive devices to improve
medical and surgical outcomes. From its inception in
1988, PPTI has been a pioneer in protein design and
synthesis, creating an extensive portfolio of proprietary
biomaterials
for use in the development of bioactive devices. These
genetically engineered biomaterials are high molecular
weight proteins, processed into products with physical
and biological characteristics tailored to specific
clinical performance requirements. Targeted products
include urethral
bulking agents for the treatment of stress urinary
incontinence, dermal augmentation products for cosmetic
and reconstructive
surgery, surgical adhesives and sealants, scaffolds
for wound healing and tissue engineering, and depots
for
local drug delivery. To date, PPTI has been issued
twenty-six U.S. Patents on its core technology with
corresponding
issued and pending patents in key international markets.
Safe Harbor
This press release contains forward-looking statements
that are based on management’s views and expectations.
Actual results could differ materially from those expressed
here; further, the Company is not obligated to comment
specifically on those differences. Risks associated with
the Company’s activities include raising adequate
capital to continue operations scientific and product
development uncertainties, competitive products and approaches,
continuing collaborative partnership interest and funding,
regulatory testing and approvals, and manufacturing scale
up. The reader is encouraged to refer to the Company’s
2004
Annual Report Form 10-KSB, and other recent filings
with the Securities and Exchange Commission, copies of
which are available from the Company, to further ascertain
the risks associated with the above statements.
