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1440 Davey Road
Woodridge, IL 60517
Company Contact: Joe Camp 630-754-4352
Advanced Life Sciences Announces First Quarter 2010 Financial Results
and Debt Restructuring Agreements
CHICAGO, IL, May 10, 2010/PRNewswire/: Advanced Life Sciences Holdings, Inc. (OTCBB: ADLS), a biopharmaceutical company engaged in the discovery, development and commercialization of novel drugs in the therapeutic areas of infection, oncology and respiratory diseases, today announced its financial results for the first quarter ended March 31, 2010.
The net loss allocable to common shareholders for the three months ended March 31, 2010 was $2.0 million or ($0.02) per share compared to a net loss allocable to common shareholders of $2.3 million or ($0.06) per share for the three months ended March 31, 2009. The decrease in the net loss is due to decreased support costs involved in the clinical activities and regulatory review of the Companys lead compound, Restanza (cethromycin).
The Company ended the first quarter of 2010 with cash and cash equivalents totaling $2.8 million. Cash used for operating activities during the quarter was approximately $2.3 million.
Following the successful approval of the measures voted on by our shareholders at our recent shareholder meeting, we are excited to continue to advance our development of Restanza for use as a drug to treat serious community-based infection such as pneumonia and as a broad spectrum countermeasure against key bioterror pathogens, said Michael T. Flavin, Ph.D., chairman and chief executive officer of Advanced Life Sciences.
The Company also announced today that it has amended its loan agreement with Leaders Bank to extend the date of maturity by 12 months to January 1, 2012. In connection with this extension, the Company reduced the amount currently outstanding under the facility from $10 million to $8.5 million and has agreed to further reduce the outstanding balance to $6 million by April 1, 2011. Advanced Life Sciences has also agreed to increase the interest rate from 8.5% to 10% and to issue 1,000,000 common stock warrants to Leaders Bank.
In addition, the Company announced that it has entered into an agreement providing that the $2 million promissory note with Michael T. Flavin, Ph.D., chairman and chief executive officer of Advanced Life Sciences, will be exchanged for equity securities of the Company. The exchange is expected to occur at the same price and time as a contemplated concurrent sale of equity securities and will result in cancellation of the outstanding indebtedness.
We view these two debt restructuring commitments as very positive transactions that will strengthen the Companys balance sheet and provide financial flexibility as we move forward, said John L. Flavin, president and chief financial officer of Advanced Life Sciences. In addition to reducing the debt on our balance sheet, the steps we have taken will mitigate our annual cash outflows by close to $400,000.
The following information was filed by Advanced Life Sciences Holdings, Inc. (ADLS) on Monday, May 10, 2010 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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