Market Overview

Kalytera Reports First Quarter 2017 Financial Results


VANCOUVER, British Columbia, May 31, 2017 (GLOBE NEWSWIRE) -- Kalytera Therapeutics, Inc. (TSX-V:KALY) (OTCQB:KALTF), a clinical-stage pharmaceutical company developing cannabinoid therapeutics for Graft versus Host Disease ("GvHD"), today reported financial results for the quarter ended March 31, 2017. (All dollars U.S. unless otherwise noted.)

First Quarter 2017 Result Highlights

Working capital totaled $1.8 million, including cash and cash equivalents of $3.1 million, as of March 31, 2017, compared with $2.9 million and $673,000, respectively, as of December 31, 2016.

The Company's March 31, 2017 cash balance was $3.1 million (unaudited) and reflects its February 2017 equity private placement of CDN$15 million, of which USD$10 million was invested in its acquisition of Talent Biotechs in that same month.

As of May 29, 2017, Kalytera had 129,235,073 common shares outstanding.

Research and development expenses were $404,000 for the quarter ended March 31, 2017 compared with $157,000 for the same period in 2016.

General and administrative expenses were $1.2 million for the quarter ended March 31, 2017 compared with $392,000 for the same period in 2016. The increase resulted primarily from a higher level of operations.

Net loss for the quarter ended March 31, 2017 was $1.6 million compared with a net loss of $549,000 for the same period in 2016.

Recent Development

Kalytera's Board of Directors has appointed Gary Leong as a member of the Audit Committee to serve until the conclusion of the next annual meeting of shareholders.

Kalytera Therapeutics, Inc.      
U.S. dollars in thousands March 31,   December 31,
    2017     2016
  Unaudited   Audited
Current assets:      
Cash and cash equivalents $  3,136   $  673
Other receivables and prepaid expenses    379      4,141
Non-current assets:      
Investment in Talent Biotechs Ltd.   16,258      - 
Total assets $  19,773   $  4,814
Total current liabilities    1,705      1,897
Total equity    18,068      2,917
Total liabilities and equity $  19,773   $  4,814


Three months ended
U.S. dollars in thousands, except share and per share data March 31,   March 31,
    2017       2016  
  Unaudited   Unaudited
Operating expenses:      
Research and development $  404     $  157  
General and administrative    1,209        392  
Total operating expenses    1,613        549  
Loss from operations $  (1,613 )   $  (549 )
Other expense:      
Finance expense, net    8        -   
Loss before income taxes    (1,621 )      (549 )
Income taxes    -         -   
Net loss and comprehensive loss $  (1,621 )   $  (549 )
Basic and diluted loss per share $  (0.02 )   $  (0.02 )
Weighted average number of Common shares outstanding    105,907,664        27,071,521  

Three months ended
  March 31,   March 31,
U.S. dollars in thousands   2017       2016  
  Unaudited   Unaudited
Net loss $  (1,621 )   $  (549 )
Net cash used in operating activities    (2,130 )      (337 )
Net cash used in investing activities    (10,000 )      -   
Net cash provided by financing activities    14,593        230  
Increase (decrease) in cash and cash equivalents    2,463        (107 )
Cash and cash equivalents at the beginning of the period    673        622  
Cash and cash equivalents at the end of the period $  3,136     $  515  
Non-cash transactions:      
Issuance of common shares upon acquisition of Talent Biotechs Ltd. $  6,258     $  -   

About Kalytera Therapeutics
Kalytera Therapeutics is a clinical-stage pharmaceutical company developing cannabinoid therapeutics. Through its proven leadership, drug development expertise, and growing intellectual property portfolio, Kalytera seeks to establish a leading position in the development of novel cannabinoid medicines for a range of important unmet medical needs, with an initial focus on Graft versus Host Disease ("GvHD").

Kalytera is also developing proprietary cannabidiol ("CBD") prodrugs intended for commercialization as FDA and EMEA-approved prescription medications. CBD has shown activity against a number of pharmacological targets. However, there are limitations associated with CBD, including its poor oral bioavailability. Kalytera's CBD prodrugs have been designed to overcome these limitations. In addition to licensed IP rights, Kalytera has filed composition of matter and method of use patents covering its inventions to reinforce its position in the market.

Safe Harbor
This news release contains "forward-looking information" within the meaning of applicable securities laws, including in respect of its product candidate pipeline, planned clinical trials, regulatory approval prospects, intellectual property objectives, management goals, capital raising abilities and other statements included in this news release of a forward-looking nature. Although Kalytera believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because Kalytera can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The statements in this press release are made as of the date of this release. Kalytera undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of Kalytera, its securities, or its respective financial or operating results (as applicable). Kalytera disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Neither 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.

Company Contact
Robert Farrell
President, COO and CFO
Phone: (888) 861-2008

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