InMed Pharmaceuticals Inc. (IMLFF) Reports Fourth Quarter and Full Year Fiscal 2018 Financial Results

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InMed Pharmaceuticals Reports Fourth Quarter and Full Year Fiscal 2018 Financial Results and Provides R&D and Business Update

InMed Pharmaceuticals Inc. (“InMed” or the “Company”) (TSX:IN; OTCQX:IMLFF), a fully integrated, cannabinoid-based biopharmaceutical company that leverages its proprietary platform technologies to develop novel therapeutics for the treatment of diseases with high unmet medical needs, today reported financial results for the three and twelve months ended June 30, 2018, which is the Company’s fourth quarter of fiscal year 2018 (“4Q18”).

Conference Call & Webcast:

Thursday, September 13, 2018 at 10:00 AM Pacific Time, 1:00 PM Eastern Time

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Conference ID:

06140730

Webcast:  https://event.on24.com/wcc/r/1825233/41E80E655BB542139BF0CC542AD952D5

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The Company’s full financial statements and related MD&A for the three and twelve months ended June 30, 2018 will be available at www.sedar.com on September 13, 2018.

“During the fourth quarter of fiscal 2018, InMed continued to execute on its R&D and business strategy,” stated President and Chief Executive Officer, Eric A. Adams.  “The Company’s progress is on track to help establish our leadership position in the field of cannabinoid pharmaceutical research.  Our goal is to develop innovative therapies for the treatment of important diseases with high unmet medical needs and to lead the burgeoning cannabinoid sector with our first-in-class biosynthetic manufacturing technology.  Over the course of this next fiscal year,” Mr. Adams concluded, “we will remain focused on building shareholder value via innovative scientific research and development, as well as attaining greater exposure within the investment community in the United States and other key markets.”

R&D and Business Update:

  • Biosynthesis manufacturing technology. The Company, in conjunction with its collaborators at the University of British Columbia, continued to advance the production platform for the bio-fermentation of cannabinoids. Optimization of the underlying gene vector will continue with our partners at UBC and, in parallel, we will be contracting with several external Contract Manufacturing Organizations (CMOs) for the identification of optimal fermentation conditions as well as purification processes. The Company also expects to continue to protect its intellectual property via additional patent filings in the coming months.
  • INM-750 for the treatment of the orphan disease epidermolysis bullosa (EB). During the fiscal 4Q18, we continued working to optimize the formulation for INM-750 and initiated work on IND-enabling pharmacology and toxicology studies. These studies may be grouped into the following three general categories: (1) Formulation studies that will allow us to select our final topical formulation by the end of calendar 2018 for our first-in-man clinical trial; (2) Pharmacology studies, which have been designed to augment our understanding of the pharmacological roles of each component of INM-750 that we also expect to complete by the end of calendar 2018; and (3) Other pre-clinical studies, the first group of which will serve as the basis for detailed discussions with the regulatory authorities and the second set of the pre-clinical studies, which will be based on the outcomes of those discussions, will enable an IND submission. We continue to believe that we are on track to begin discussions of our clinical development plans with regulatory authorities in the first half of 2019 and to file an IND for INM-750 in the second half of 2019.

Results of Operations (expressed in Canadian Dollars):

  • For the three and twelve months ended June 30, 2018, the Company recorded a net loss of $3.03 million and $8.52 million, or $0.02 and $0.06 per share, respectively, compared with a net loss of $1.88 million and $4.47 million, or $0.02 and $0.05 per share, for the three and twelve months ended June 30, 2017.
  • Research and development expenses were $0.58 million for the three months ended June 30, 2018, compared with $0.38 million for the three months ended June 30, 2017. For the twelve months ended June 30, 2018, research and development expenses totaled $1.93 million, which compares with $0.75 million for the corresponding period in 2017. The increase in research and development expenses in the three months ended June 30, 2018 as compared to the same quarter in 2017 was primarily due to increased spending with external contractors for expenditures related to the advancement of INM-750 for the treatment for EB, as well as higher R&D personnel compensation as a result of increased R&D staffing.
  • The Company incurred general and administrative expenses of $0.98 million for the three months ended June 30, 2018, compared with $0.75 million for the three months ended June 30, 2017. For the twelve months ended June 30, 2018, general and administrative expenses totaled $3.37 million, which compares with $2.32 million for the corresponding period in 2017. The increase in general and administrative expenses in the three months ended June 30, 2018 as compared to the same quarter in 2017, was primarily due to increased personnel compensation that reflects increased staffing, reflective of the growth in the Company’s operations.
  • The Company also incurred non-cash, share-based payments, in connection with the grant of stock options, of $1.51 million for the three months ended June 30, 2018, compared with $0.72 million for the three months ended June 30, 2017. For the twelve months ended June 30, 2018, non-cash, share-based payments totaled $3.20 million, which compares with $1.31 million for the corresponding period in 2017.
  • At June 30, 2018, the Company’s cash, cash equivalents and short-term investments were $26.48 million, which compares to $6.71 million at June 30, 2017. During the twelve months to June 30, 2018, the Company’s cash, cash equivalents and short-term investments increased by $19.77 million, which resulted primarily from receipt of net cash proceeds of $22.14 million from its June 21, 2018 financing and its non-brokered private placement completed on January 3, 2018 and $2.34 million proceeds from the exercise of warrants and stock options less $4.67 million cash outflows from operating activities.

Corporate Update (expressed in Canadian Dollars):

  • On June 21, 2018, the Company completed a bought deal financing of 16,611,244 Units, at a price of $0.90 per Unit, for gross proceeds of $14.95 million (the “Financing”). Each Unit consists of one common share and one share purchase warrant. Each share purchase warrant is exercisable by the holder to acquire one additional common share at a price of $1.25 for a period of 24 months. As part of this Financing, 1,106,397 agent warrants, with an exercise price of $1.05 per share, were issued to the underwriter of the Financing. Net cash proceeds from the Financing totaled $13.51 million.
  • At June 30, 2018, the Company’s total issued and outstanding shares were 170,851,069. Including outstanding stock options and warrants, as at June 30, 2018, the Company had 221,398,726 shares on a fully diluted basis. During the three months ending June 30, 2018, the weighted average number of common shares was 155,143,970, which is used for the calculation of loss per share.

Table 1:  Consolidated statements of financial position (audited):

InMed Pharmaceuticals Inc. 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at June 30

Expressed in Canadian Dollars

2018

2017

ASSETS

Current

Cash and cash equivalents

$

24,134,277

$

6,707,796

Short-term investments

2,342,615

Taxes recoverable 

53,373

59,148

Prepaids and advances

203,477

177,577

Total current assets

26,733,742

6,944,521

Non-Current

Property and equipment

55,732

27,049

Intangible assets

1,273,670

1,364,558

Total Assets

$

28,063,144

$

8,336,128

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current

Trade payables

937,759

369,674

SHAREHOLDERS’ EQUITY

Share capital

68,058,698

43,153,871

Contributed surplus

10,381,759

7,606,735

Accumulated deficit

(51,315,072)

(42,794,152)

27,125,385

7,966,454

$

28,063,144

$

8,336,128

Table 2:  Consolidated statements of comprehensive loss:

InMed Pharmaceuticals Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

For the three and twelve months ended June 30, 2018 and June 30, 2017

Expressed in Canadian Dollars

UNAUDITED

AUDITED

Three Months Ended

Twelve Months Ended

June 30

June 30

2018

2017

2018

2017

Expenses

General and administrative

$

976,082

$

754,091

$

3,367,698

$

2,320,922

Research and development

576,954

378,249

1,927,137

746,162

Amortization and depreciation

30,722

23,629

117,845

97,823

Foreign exchange (gain) loss

(6,129)

2,151

(287)

322

Share-based payments

1,505,142

717,534

3,196,864

1,308,620

Total expenses

3,082,771

1,875,654

8,609,257

4,473,849

Interest income

53,571

88,337

Total comprehensive loss for the period

$

(3,029,200)

$

(1,875,654)

$

(8,520,920)

$

(4,473,849)

Basic and diluted loss per share for the period

$

(0.02)

$

(0.02)

$

(0.06)

$

(0.05)

Basic and diluted weighted average number of common shares outstanding

155,143,970

118,904,411

142,451,768

89,452,627

Table 3:  Consolidated statements of cash flows (audited):

InMed Pharmaceuticals Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ended June 30

Expressed in Canadian Dollars

2018

2017

OPERATING ACTIVITIES

Cash flows from operating activities

Loss for the year

$

(8,520,920)

$

(4,473,849)

Adjustments to reconcile loss to net cash used in operating activities

Amortization and depreciation

117,845

97,823

Share-based payments

3,196,864

1,308,620

Shares issued for services

206,646

Accrued interest income on short-term investments

(13,868)

Changes in non-cash working capital balances:

Prepaids and advances

(25,900)

(129,276)

Taxes recoverable 

5,775

25,974

Trade payables

568,086

(112,334)

Total cash outflows from operating activities

(4,672,118)

(3,076,396)

Cash Flows From Investing Activities

Purchase of short-term investments

(2,328,750)

Purchase of property and equipment

(55,639)

(25,393)

Total cash outflows from investing activities

(2,384,389)

(25,393)

Cash Flows From Financing Activities

Shares issued for cash

26,694,465

10,749,780

Share issue costs

(2,211,477)

(994,436)

Cash provided by financing activities

24,482,988

9,755,344

Increase in cash during the year

17,426,481

6,653,555

Cash and cash equivalents beginning of the year

6,707,796

54,241

Cash and cash equivalents end of the year

$

24,134,277

$

6,707,796

The Company’s full financial statements and related MD&A for the year ended June 30, 2018 are available at www.sedar.com.

About InMed:
InMed is a pre-clinical stage biopharmaceutical company that specializes in developing novel therapies through the research and development into the extensive pharmacology of cannabinoids coupled with innovative drug delivery systems. InMed’s proprietary bioinformatics database drug/disease targeting tool, cannabinoid biosynthesis technology and drug development pipeline are the fundamental value drivers of the Company. For more information, visit www.inmedpharma.com

About Epidermolysis Bullosa (EB).  EB is a group of rare diseases that cause fragile, blistering skin.  The blisters may appear in response to minor injury, even from heat, rubbing, scratching or adhesive tape.  In severe cases, the blisters may occur inside the body, such as the lining of the mouth or the stomach.  Most types of epidermolysis bullosa are inherited.  The condition usually presents in infancy or early childhood.  Epidermolysis bullosa has no cure.

About INM-750.  INM-750 is a proprietary, topical cannabinoid product candidate targeted as a therapy in epidermolysis bullosa (EB) and other potential dermatological and wound-healing applications. It has been specifically designed with the intent to: (i) modify the underlying cause of the disease in certain patients with EB Simplex (EBS, the most common form of EB), and (ii) to treat the major symptoms of the disease in all patients with EB. Preclinical data generated previously demonstrates that INM-750 may have a significant impact on certain symptoms of EB (which may include improvement of wound area to promote healing, reduction in pain, itch and inflammation, and providing antimicrobial activity). These disease hallmarks are key therapeutic targets for the effective treatment of EB as well as several other dermatological conditions. Additionally, our data indicate that INM-750 may have an impact on the underlying disease by increasing the production of certain proteins, called keratins, in the skin.

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