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LIQUIDITY AND CAPITAL RESOURCES
Since inception, the Company has financed its operations from public and private sales of equity, the exercise of warrants and stock options, and, to a lesser extent, on interest income from funds available for investment, investment tax credits, and revenues from distribution, licensing and contract services. Since the Company does not have net earnings from its operations, the Company's long-term liquidity depends on its ability to access the capital markets, which depends substantially on the success of the Company's ongoing research and development programs.
At July 31, 2009 and 2008, the Company had cash and cash equivalents totaling $14,494,000 and $19,057,000, respectively. The $4,563,000 decrease in cash and cash equivalents reflects a use of cash in operating activities of $13,157,000 which includes a net loss for the year of $14,102,000. Operating activities were financed from a private placement which closed on October 2, 2008 for net proceeds of $9,659,000. Cash used in investing activities in the 2009 fiscal year total $932,000 which predominately reflects purchases of research and development equipment. Effect of exchange rate changes on cash and cash equivalents in fiscal 2009 represent a foreign exchange loss of $133,000.
At July 31, 2009 and 2008, the Company's working capital was $15,296,000 and $19,166,000, respectively.
On September 8, 2009, subsequent to Company's fiscal year ended July 31, 2009, the Company completed an additional private placement, issuing 6,625,000 units at $2.05 per unit, for gross proceeds of $13,581,250. Each unit consists of one common share and one common share purchase warrant, with each common share purchase warrant entitling the holder to purchase, subject to adjustment, one common share
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