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Press release from CNW Group

Medwell Capital Reports 2012 Third Quarter Results

Monday, November 19, 2012

Medwell Capital Reports 2012 Third Quarter Results11:00 EST Monday, November 19, 2012EDMONTON, Nov. 19, 2012 /CNW/ - Medwell Capital Corp. ("Medwell" or the "Company") (TSX-V: MWC) today announced financial and operational results for the third quarter ended September 30, 2012.Third Quarter HighlightsCompleted a 20:1 share consolidation, for a total 4,550,446 shares outstanding at quarter endSubsequent completion of a $4.3 million private placement and reorganization whereby Medwell's healthcare assets were transferred to a wholly owned limited partnership, and Messrs. Michael Salamon and Patrick Barry were appointed to the board of directors of Medwell Capital."It's been a very transformative period at Medwell," said Kevin Giese, President and CEO of Medwell. "The quarter saw the loss from continuing operations down significantly as a result of past reorganization efforts, and we recently injected new capital and restructured the Company to better position it to look for future investment opportunities."Financial ResultsThe consolidated net loss from continuing operations of the Corporation in 2012 decreased significantly from prior year periods, largely as a result of a decrease in operating expenses that came about through the Corporations' past reorganization efforts:For the three months ended September 30, 2012, the loss was $0.5 million ($0.10 per share), down significantly from a loss of $3.6 million ($0.79 per share) for the same period in 2011.  The results for the past quarter recognized a gain of $0.2 million on the fair value of the Corporation's investments, and included $0.2 million in extraordinary reorganization related costs. There was a substantial $3.4 million decrease in expenses from continuing operations in 2012 as compared to the same period in 2011.For the nine months ended September 30, 2012, the loss was $3.1 million ($0.68 per share), after recognizing a loss of $1.0 million on the fair value of the Corporation's investments. The results represent a significant $10.1 million improvement over the prior year period's loss of $13.2 million ($2.90 per share), again largely as a result of a decrease in operating expenses.The loss and comprehensive losses in 2012 also decreased significantly from the prior year periods: a loss of $1 million ($0.21 per share) for the three months ended September 30, 2012 as compared to $3.6 million ($0.79 per share) in the prior year period; and a loss of $3.8 million ($0.84 per share) for the nine months ended September 30, 2012 as compared to $13.2 million ($2.90 per share) in the prior year period. The 2012 results included a loss from discontinued operations of $0.5 million ($0.11 per share) and $0.7 million ($0.16 per share) for the three and nine month periods respectively.At September 30, 2012, cash and cash equivalents and restricted cash totaled $4.1 million. The Corporation's working capital decreased $1.2 million from $3.9 million at year end to $2.7 million at September 30th, of which $0.6 million was used in continuing operations.  The Corporation subsequently raised $4.3 million from a private placement. The Corporation currently has sufficient working capital to meet its obligations as they come due.At November 18, 2012, there were 7,270,071 common shares of the Corporation issued and outstanding.For complete financial results, please see our filings at Medwell Capital Corp.Medwell Capital Corp. is a Canadian-based investment and advisory firm. For further information please visit TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.  This press release may contain forward-looking statements, which reflect the Company's current expectation regarding future events.  These forward-looking statements involve risks and uncertainties that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements.  Such factors include, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Corporation's ongoing quarterly and annual reporting.  We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.          Medwell Capital Corp. Interim Condensed Consolidated Statements of Financial Position(Unaudited)      (expressed in thousands of Canadian dollars)             September 30,2012$ December 31,2011$       Assets           Cash and cash equivalents 3,162 4,339 Investments 6,925 7,875 Restricted cash 917 2,210 Accounts receivable 269 334 Prepaid expenses 124 149 Property and equipment 16 23         11,413 14,930       Liabilities           Accounts payable and accrued liabilities 500 424                   Guarantees            Shareholders' Equity           Share capital  162,144 162,144       Contributed surplus  13,116 12,883       Deficit (164,347) (160,521)         10,913 14,506         11,413 14,930           Medwell Capital Corp. Interim Condensed Consolidated Statements of Operations and Comprehensive Loss(Unaudited)     (expressed in thousands of Canadian dollars)          Nine-month period ended September 30,  Three-month period ended September 30,          2012$ 2011$  2012$ 2011$         Revenue        Contract services913 1,302  163 420                  Change in fair value of investments970 6,401  (196) 2,178Operating, general and administrative2,820 7,665  820 1,780Stock-based compensation225 645  - 326Depreciation of property and equipment10 31  2 9Loss on disposal of property and equipment- 3  - -Foreign exchange (gain) loss31 (132)  - (236)Interestearned(31) (134)  (13) (28)          4,025 14,479  613 4,029         Loss from continuing operations(3,112) (13,177)  (450) (3,609)Loss from discontinued operations(714) -  (518) -         Loss and comprehensive loss (3,826) (13,177)  (968) (3,609)         Basic and diluted loss per common share -  continuing operations (0.68) (2.90)  (0.10) (0.79)           Basic and diluted loss per common share -  discontinued operations   (0.16) -  (0.11) -           Basic and diluted net loss per common share (0.84) (2.90)  (0.21) (0.79)           Basic and diluted weighted average number  of common shares outstanding 4,550 4,550  4,550 4,550                  Medwell Capital Corp. Interim Condensed Consolidated Statements of Changes In Equity(Unaudited)         (expressed in thousands of Canadian dollars)                   Sharecapital$ Contributedsurplus$ Deficit$ Total$Balance, December 31, 2011 162,144 12,883 (160,521) 14,506         Net and comprehensive loss for the period - - (3,826) (3,826)Employee share options:         Value of services recognized - 233 - 233         Balance, September 30, 2012 162,144 13,116 (164,347) 10,913                  Balance, December 31, 2010 175,714 12,319 (148,664) 39,369         Net and comprehensive loss for the period - - (13,177) (13,177)Distribution of Spectral         Diagnostics Inc. (13,750) - - (13,570)Employee share options:         Value of services recognized - 645 - 319         Balance, September 30, 2011 175,714 12,964 (158,232) 30,120        Medwell Capital Corp. Interim Condensed Consolidated Statements of Cash Flows(Unaudited)    (expressed in thousands of Canadian dollars)     Nine-month period ended September 30,       2012$ 2011$ Cash provided by (used in)     Operating activities     Net loss from continuing operations (3,112) (13,177) (Gain) Loss on sale of investments - 4,046 Purchase of investments (20) (13,741) Proceeds from sale of investments - 152  Proceeds from (purchase of) short-term investments - (148) Purchase of property and equipment - (11) Transferred from restricted cash 1,193 532 Items not involving cash      Unrealized loss on investments 970 2,335  Stock-based compensation 225 645  Depreciation of property and equipment 10 31  Loss on disposal of property and equipment - 3  Unrealized foreign exchange gain - (77)   (734) (19,390) Net change in non-cash working capital items 111 571   (623) (18,819) Foreign exchange loss on cash and cash equivalents held in foreign currency - 77       Cash used in continuing operations (623) (18,742) Cash used in discontinued operations  (554) (747) Decrease in cash and cash equivalents (1,177) (19,489) Cash and cash equivalents - Beginning of period 4,339 24,841       Cash and cash equivalents - End of period 3,162 5,352 Cash and cash equivalents consists of     Bank accounts 1,339 3,176 Interest bearing deposits and securities 1,823 2,176   3,162 5,352 Supplemental cash flow information      Income taxes paid   $      - $    -  Interest paid         - -          SOURCE: Medwell Capital Corp.For further information: Tony Hesby Medwell Capital Corp. 780-413-7152 780-408-3040 Fax Michael Moore Investor Relations TMX Equicom 619-467-7067