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Press release from Marketwire

Trimel Pharmaceuticals Corporation Announces First Quarter 2013 Financial Results

Wednesday, May 08, 2013

Trimel Pharmaceuticals Corporation Announces First Quarter 2013 Financial Results

17:31 EDT Wednesday, May 08, 2013
TORONTO, ONTARIO--(Marketwired - May 8, 2013) - Trimel Pharmaceuticals Corporation (TSX:TRL) today reported its financial results for the three month period ended March 31, 2013.

Management of the Company will host a conference call to discuss these results on Thursday, May 9, 2013, at 8:30 a.m. Eastern Daylight Time.

To access the call live, please dial 416-340-2216 (Toronto), 1-866-226-1792 (Canada and U.S.) or 1-800-9559-6849 (International). Listeners are encouraged to dial in 10 minutes before the call begins to avoid delays.

A replay of the conference call will be available until 7:00 p.m. Eastern Daylight Time on Thursday, May 16, 2013 by dialing 905-694-9451 (Toronto), 1-800-408-3053 (Canada and U.S.) or 00-800-3366-3052 (International), using access code: 3086288#.

Financial Results for the Three Months Ended March 31, 2013

For the three month period ended March 31, 2013, Trimel incurred Research and Development ("R&D") expenses of US$4.9 million, as compared to US$4.4 million for the comparable 2012 period. The increase in R&D spending for the 2013 period relates primarily to the payment of a milestone payment to the Company's technology partner which offset the decrease in other R&D expenses.

Trimel incurred General and Administrative expenses of US$3.4 million for the three month period ended March 31, 2012, as compared to US$2.0 million for the comparable 2012 period. The increase in spending for the 2013 period as compared to spending levels for the same 2012 period was primarily attributable to legal fees associated with matters relating to the Company's intellectual property and changes in the management composition.

For the three month period ended March 31, 2013, the Company incurred a net loss of US$0.09 per share, as compared to a net loss of US$0.08 per share for the comparable 2012 period.

As at March 31, 2013, the Company had total assets of US$11.8 million, as compared to US$16.9 million at December 31, 2012 and total liabilities of US$15.1 million at March 31, 2013, as compared to US$12.2 million at December 31, 2012.

The information set out above is in summary form. Readers are encouraged to review the Company's annual information form, financial statements (and accompanying notes), together with management's discussion and analysis available on SEDAR at www.sedar.com.

Recent Developments

Submission of CompleoTRT™ New Drug Application ("NDA")

On April 30, 2013, the Company announced that it had submitted a NDA to the United States Food and Drug Administration ("FDA") for approval of its bioadhesive intranasal gel testosterone product, indicated for the treatment of testosterone deficiency in men. The Company expects the CompleoTRT™ NDA will be subject to a standard review cycle, which could be completed as early as the first half of 2014.

Equity Financing Completed

On April 24, 2013, the Company announced that it completed its public offering (the "Offering") for aggregate gross proceeds of $40.0 million ($37.8 million after deducting applicable underwriting commission). In connection with the Offering, the Company issued a total of 50.0 million common shares at a price of $0.80 per common share. The Offering was completed by a syndicate of underwriters led by RBC Capital Markets and including D&D Securities and Paradigm Capital (collectively, the "Underwriters").

On May 1, 2013, the Company announced the issuance of an additional 7.5 million common shares of the Company at a price of $0.80 per common share for gross proceeds of $6.0 million ($5.67 million after deducting applicable underwriting commission). The issuance was pursuant to the exercise of the overallotment option granted to the Underwriters.

About Trimel

Trimel is a specialty pharmaceutical company actively developing medications for male hypogonadism, female sexual dysfunction and various respiratory disorders. A New Drug Application for CompleoTRT, a product using Trimel's licensed bioadhesive intranasal technology, has been filed with the FDA for regulatory approval in the United States. For more information, please visit www.trimelpharmaceuticals.com.

Notice regarding forward-looking statements:

Information in this press release that is not current or historical factual information may constitute forward looking information within the meaning of securities laws. Implicit in this information, are assumptions regarding our future operational results. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the Company is subject to a number of risks and uncertainties (including, whether the Company will be successful in obtaining FDA approval of CompleoTRT™), and could differ materially from what is currently expected as set out above. For more exhaustive information on these risks and uncertainties you should refer to our annual information form dated March 24, 2013 and prospectus dated April 18, 2013 which are available at www.sedar.com. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities law.

TRIMEL PHARMACEUTICALS CORPORATION CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT MARCH 31, 2013
UNAUDITED
(expressed in U.S. Dollars)
ASSETS
March 31, December 31,
2013 2012
CURRENT
Cash $ 4,208,844 $ 9,216,999
Other receivables 48,828 72,209
Prepaids and other assets 1,182,989 1,023,047
5,440,661 10,312,255
NON-CURRENT ASSETS
Restricted cash 24,616 25,128
Property and equipment, net 2,826,027 3,026,160
Intangible assets 3,488,650 3,562,600
TOTAL ASSETS $ 11,779,954 $ 16,926,143
LIABILITIES
CURRENT
Accounts payable and accrued liabilities $ 8,389,107 $ 4,802,114
Provisions 33,899 42,494
Current portion of capital lease obligation 34,723 140,551
Current portion of long-term debt, net of issuance costs 2,714,787 2,425,562
11,172,516 7,410,721
LONG-TERM
Long-term debt, net of issuance costs 3,867,254 4,561,686
Derivative financial instrument 67,281 203,248
TOTAL LIABILITIES 15,107,051 12,175,655
SHAREHOLDERS' EQUITY
Share capital 78,214,661 78,214,661
Warrants 3,452,607 3,452,607
Contributed surplus 4,796,472 4,318,927
Accumulated other comprehensive income 236,433 362,920
Deficit (90,027,270 ) (81,598,627 )
TOTAL SHAREHOLDERS' EQUITY (3,327,097 ) 4,750,488
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 11,779,954 $ 16,926,143
TRIMEL PHARMACEUTICALS CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012
UNAUDITED
(expressed in U.S. Dollars)
2013 2012
EXPENSES
Research and development $ 4,874,417 $ 4,398,574
General and administrative 3,405,681 2,018,594
Total operating expenses 8,280,098 6,417,168
FINANCE COSTS, NET
Interest on long-term debt and other financing costs 288,655 9,684
Interest income (4,143 ) (2,391 )
Change in fair value of derivative financial instrument (135,967 ) -
148,545 7,293
LOSS BEFORE INCOME TAXES (8,428,643 ) (6,424,461 )
PROVISION FOR (RECOVERY OF) INCOME TAXES
Current - -
Deferred - (57,851 )
- (57,851 )
NET LOSS $ (8,428,643 ) $ (6,366,610 )
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation adjustment (126,487 ) 30,891
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD $ (8,555,130 ) $ (6,335,719 )
Basic and diluted weighted average shares outstanding 90,796,762 83,131,781
Basic and diluted net loss per common share $ (0.09 ) $ (0.08 )
TRIMEL PHARMACEUTICALS CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIENCY) FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012
UNAUDITED
(expressed in U.S. Dollars)
Accumulated
other
Contributed comprehensive
Share capital Warrants surplus income Deficit Total
Balance, January 1, 2012 $ 67,430,241 $ 2,413,367 $ 1,610,972 $ 78,682 $ (53,574,914 ) $ 17,958,348
Net loss for the period - - - - (6,366,610 ) (6,366,610 )
Cumulative translation adjustment - - - 30,891 - 30,891
Total comprehensive loss for the period - - - 30,891 (6,366,610 ) (6,335,719 )
Share based compensation - - 416,587 - - 416,587
Balance as at March 31, 2012 $ 67,430,241 $ 2,413,367 $ 2,027,559 $ 109,573 $ (59,941,524 ) $ 12,039,216
Balance, January 1, 2013 $ 78,214,661 $ 3,452,607 $ 4,318,927 $ 362,920 $ (81,598,627 ) $ 4,750,488
Net loss for the period - - - - (8,428,643 ) (8,428,643 )
Cumulative translation adjustment - - - (126,487 ) - (126,487 )
Total comprehensive loss for the period - - - (126,487 ) (8,428,643 ) (8,555,130 )
Share based compensation - - 477,545 - - 477,545
Balance as at March 31, 2013 $ 78,214,661 $ 3,452,607 $ 4,796,472 $ 236,433 $ (90,027,270 ) $ (3,327,097 )
TRIMEL PHARMACEUTICALS CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012
UNAUDITED
(expressed in U.S. Dollars)
2013 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period $ (8,428,643 ) $ (6,366,610 )
Items not requiring an outlay of cash:
Amortization of intangible assets 73,950 73,950
Depreciation of property and equipment 170,414 173,325
Accretion of long-term debt 14,927 -
Amortization of deferred financing costs 79,866 -
Interest expense 194,574 -
Change in fair value of derivative financial instrument (135,967 ) -
Share based compensation 477,545 416,587
Loss on property and equipment 4,241 -
Income tax provision - (57,851 )
Other - (25,548 )
Net changes in non-cash working capital items related to operating activities:
Other receivables 22,422 (2,902 )
Accounts payable and accrued liabilities 3,561,219 1,824,075
Prepaids and other assets (181,369 ) (7,357 )
Provisions (7,784 ) (357,878 )
(4,154,605 ) (4,330,209 )
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of long-term debt obligations (500,000 ) -
Payment of capital lease obligations (103,705 ) (97,401 )
Interest paid (130,311 ) -
(734,016 ) (97,401 )
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment (34,796 ) (18,863 )
Proceeds from sale of fixed assets 1,015 -
(33,781 ) (18,863 )
NET DECREASE IN CASH FOR THE PERIOD (4,922,402 ) (4,446,473 )
Exchange gain on cash (85,753 ) 3,501
CASH, BEGINNING OF THE PERIOD 9,216,999 14,528,625
CASH, END OF THE PERIOD $ 4,208,844 $ 10,085,653

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
Trimel Pharmaceuticals Corporation
Kenneth G. Howling
Chief Financial Officer
416 679 0536
www.trimelpharmaceuticals.com

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