FYI News.
HemaSure Inc. Announces Two Million Dollar Equity Financing With Sepracor
Thursday, April 1, 1999 10:25 AM
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Releases Fourth-quarter and Year-end Financial Results
MARLBOROUGH, Mass., April 1 /PRNewswire/ -- HemaSure Inc. (OTC Bulletin Board: HMSR), a
developer of blood filtration technologies, announced today that it has closed on $2 million in equity
financing with Sepracor Inc. (Nasdaq: SEPR), its largest shareholder.
Financing Agreement
The financing agreement with Sepracor includes a combination of equity and warrants to purchase
additional shares of the Company's common stock. HemaSure has obtained $2 million in equity
financing from Sepracor at a price of $1.50 per share. With the completion of the financing, Sepracor
now owns 42 percent of HemaSure's outstanding shares. Approximately $1 million in additional equity
could also be received through the exercise of the 667,000 warrants acquired by Sepracor in the
financing, exercisable at $1.50 per share. HemaSure may require that the warrants be exercised under
certain conditions as specified in the agreement. The financing will be used for general corporate
purposes.
Stated HemaSure President and Chief Executive Officer Jack McGuire, "This financing agreement with
Sepracor satisfies our immediate capital needs. We are pleased that Sepracor continues to recognize
the marketplace potential of the r\LS product. In addition to the Sepracor financing, HemaSure is
aggressively seeking additional financing needed to ensure the launch of the r\LS and successful sales
growth. Possible sources of capital include strategic partnerships, public or private equity and/or debt
financing."
"The world continues to move rapidly toward increased leukoreduction of donated blood supplies," said
McGuire. "This has been especially evident in our key target markets of Europe and the United States.
We are very excited about our potential to capture market share in the growing European market. In
addition, we look forward to commercializing the product in the U.S. market pending the 510(k)
clearance of the product by the U.S. Food and Drug Administration (FDA). We currently anticipate that
FDA clearance of our 510(k) application could occur during the second quarter of 1999," concluded
McGuire.
Fourth-quarter and 1998 Financial Results
The Company reported no revenues during the fourth quarter of 1998 ended December 31, 1998 due to
its decision, announced in February 1998, to discontinue manufacturing and selling its LeukoNet(TM)
Pre-Storage Leukoreduction System in order to focus on developing its next-generation red blood cell
filtration product, the r\LS Red Blood Cell Filtration System. The Company reported revenues of
$767,000 in the fourth quarter of 1997. For the fourth quarter of 1998, HemaSure reported a net loss of
$(3.2) million, or $(0.35) per share basic and diluted. In the fourth quarter of 1997, the Company reported
a net loss of $(3.6) million, or $(0.44) per share basic and diluted.
Revenues for the 12-month period ended December 31, 1998 were $25,000, compared with $2.4 million
for the same period of 1997. HemaSure reported a net loss of $(12.2) million, or $(1.35) per share basic
and diluted, in 1998, compared with a net loss of $(9.9) million, or $(1.22) per share basic and diluted, in
1997.
HemaSure Inc., based in Marlborough, Massachusetts, develops and delivers innovative filtration
technologies designed to set standards of safety for processing blood components worldwide.
Any statements contained herein that are not historical facts are forward- looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties.
Potential factors could cause actual results to differ materially from those expressed or implied by such
statements, which include, but are not limited to, the development and commercialization of the
Company's r\LS System in the United States and internationally and its ability to raise additional capital
necessary to continue its operations, of which there can be no assurance. In addition, there can no
assurance that the FDA will clear the product for marketing in the United States. Information on the
potential factors that could affect the Company's actual results of operations are included in its filings
with the Securities and Exchange Commission, including but not limited to its Annual Report on Form
10-K for the fiscal year ended December 31, 1998.
The Consolidated Statements of Operations and Consolidated Condensed Balance Sheets follow:
HemaSure Inc.
Consolidated Statements of Operations
Three months ended Twelve months ended
(In thousands, except
per share amounts) December 31, December 31,
(Unaudited)
1998 1997 1998 1997
Revenues:
$-- $767 $25 $2,357
Cost and expenses:
Cost of products sold -- 1,653 657 4,158
Research and
development 928 878 3,794 3,577
Legal expense
related to patents 1,027 234 3,340 506
Selling, general
and administrative 983 1,374 4,201 4,458
Restructuring charge -- -- -- 1,215
Total costs
and expenses 2,938 4,139 11,992 13,914
Loss from
operations (2,938) (3,372) (11,967) (11,557)
Other (expense)
income (258) (241) (203) 1,673
Net (loss) $(3,196) $(3,613) $(12,170) $(9,884)
Net (loss)
per share -
basic and diluted $(0.35) $(0.44) $(1.35) $(1.22)
Weighted average
number of common
stock outstanding -
basic and diluted 9,058 8,140 9,025 8,127
HemaSure Inc.
Consolidated Condensed Balance Sheets
December 31, December 31,
(In thousands) 1998 1997
(Unaudited)
ASSETS
Cash and marketable
securities $1,827 $8,156
Accounts receivable -- 436
Inventories 206 158
Property, plant and
equipment, net 1,505 1,478
Other assets 2,117 379
Total assets $5,655 $10,607
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Accounts payable, accrued expenses,
capital lease obligations
and notes payable $8,487 $3,387
Convertible subordinated
note payable -- 8,687
Total stockholders'
(deficit) (2,832) (1,467)
Total liabilities and
stockholders'
(deficit) $5,655 $10,607
SOURCE HemaSure Inc.
CONTACT: James B. Murphy, Senior Vice President, Finance and Administration of HemaSure Inc.,
508-490-9500
Quote for referenced ticker symbols: SEPR, HMSR
© 1999, PR Newswire
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