Monday, 1 June 2009

MBI Releases First Quarter Results

Basic shares: 41 million
Fully diluted: 63 million


Late Friday, MBI released its first quarter financial results, and also used the release to sum up the business developments for the quarter.

Highlights of the first quarter include the following:

· Berkeley Capital Corp. II placed a lead order into MBI’s non brokered private placement worth approximately $635,000. For this private placement, which is currently underway, MBI intends to raise between $1.3 million and $1.6 million. The money will be used to commercially launch LungExpressDx™ in the United States later this year.

· April 2009 saw MBI enter into an expanded license and development agreement with the University Health Network for the LungExpressDx™ product.

· April 2009 initiated an additional study to validate LungExpressDx™ in predicting a patient’s prognosis for survival. The study is expected to be completed in the third quarter 2009.

· In March 2009, Dave Matthews was appointed CFO

First quarter financial highlights:

· MBI incurred a loss of $551,530 ($0.01 per share) for the first quarter of 2009, compared to a loss of $492,947 ($0.02 per share) for the first quarter of 2008. The loss reflects MBI's increased commercialization and partnering efforts regarding LungExpress Dx(TM).

· Research and development expenses were $202,288 for the first quarter of 2009, compared to $168,725 for the comparable period a year earlier. Laboratory supplies expenses decreased significantly in the first quarter of 2008 compared to the first quarter of 2009 and were offset by an increase in fees paid to the University Health Network in respect of the collaborative development of LungExpressDx(TM). Contributions under a Canadian government IRAP grant relating to MBI's cardiovascular program were $11,420 for the first quarter of 2009, compared to $34,465 for the first quarter of 2008. Funding under this grant was fully drawn during the first quarter of 2009 and subsequent to quarter-end the funds relating to this program were collected.

· General and administrative expenses increased marginally to $327,531 during the first quarter of 2009, compared to $311,733 for the first quarter of 2008. Personnel costs and public company costs increased between the comparative quarters and were partly offset by lower communications and professional fees. Stock-based compensation expenses increased to $71,642 as a result of options issued during the first quarter of 2009 to certain members of management and the board of directors.

· At March 31, 2009, MBI had cash and equivalents and government receivables totaling $701,422 compared to $1,057,230 at December 31, 2008. The decrease relates to operational cash outflows during the quarter with no offsetting financing activities. Including the expected proceeds from the proposed financing mentioned above, MBI expects to have sufficient cash to fund its operations through the end of 2009.

To view the full release, please click here.