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Aug. 30, 2021, 8:01 a.m. EDT

Portage Biotech Announces Results for First Quarter of 2022 Fiscal Year

WESTPORT, Conn., Aug 30, 2021 (GLOBE NEWSWIRE via COMTEX) -- - $29 million raised during quarter with broad institutional support

- Proceeds will accelerate advancement of clinical pipeline toward multiple data readouts over the next 18-24 months

WESTPORT, Conn., Aug. 30, 2021 (GLOBE NEWSWIRE) -- Portage Biotech Inc. /zigman2/quotes/205701577/composite PRTG -8.42% ("Portage" or the "Company") a clinical-stage immuno-oncology company focused on the development of therapies and treatments targeting cancer treatment resistance, today announced financial results for the quarter ended June 30, 2021.

"With the transformation of Portage now complete, our focus for the coming year is to significantly accelerate our clinical pipeline of novel immuno-oncology therapeutics designed to overcome cancer treatment resistance," said Dr. Ian Walters, chief executive officer of Portage Biotech. "Our recent financings provide us with the resources to complete Phase 1 and Phase 2 clinical trials for our lead invariant natural killer T cell (iNKT) agonists, PORT-2 and PORT-3, which we believe have the potential to synergize with PD-1 agents and overcome PD-1 resistance. These attributes represent a substantial opportunity to expand the already significant PD-1 cancer treatment market. Recent increased interest and transactional activity from big pharma in the iNKT space has served as further validation of the role of iNKT cells in cancer. With sufficient resources now in place, we plan to also advance our broader pipeline and to other value-driving catalysts in the coming fiscal year."

First Quarter FY 2022 Financial & Business Highlights

  • Increased financial resources with over $29 million raised since fiscal year-end:

  • Improved stock liquidity:

  • Broad-based investor outreach planned for Fall 2021 through participation and/or presentation at the following conferences:

First Quarter FY 2022 Clinical Highlights

  • Acceleration of development programs from the Company's first-in-class immuno-oncology asset portfolio, including milestones related to lead iNKT agonists PORT-2 and PORT-3 and intratumoral amphiphilic therapy PORT-1. Key milestones included:

First Quarter FY 2022 Financial Results

The Company generated a net loss and comprehensive loss of approximately $3.2 million in the three months ended June 30, 2021 ("Fiscal 2022 Quarter"), compared to a net loss of approximately $0.7 million and a comprehensive loss of approximately $0.6 million in the three months ended June 30, 2020 ("Fiscal 2021 Quarter"), an increase in loss of $2.5 million and $2.6 million, respectively, year over year. Operating expenses, which include research and development and general and administrative expenses, were $3.6 million in the Fiscal 2022 Quarter, compared to $1.0 million in the Fiscal 2021 Quarter, an increase of $2.6 million, which is discussed more fully below. Operating expenses included $2.2 million of non-cash stock-based compensation expense in the Fiscal 2022 Quarter, compared to $0.3 million in the Fiscal 2021 Quarter.

The Company's other items of income and expense were substantially non-cash in nature and were approximately $0.3 million net other income in each of the Fiscal 2022 Quarter and the Fiscal 2021 Quarter. Non-cash items included in other income and expenses in the Fiscal 2022 Quarter were:

  • A gain of $0.4 million representing the change in the fair value of the warrants issued with respect to the SalvaRx settlement; and

  • A small loss of $0.04 million generated by Stimunity, which operates our STING platform, accounted for under the equity method in the Fiscal 2022 Quarter, compared to a $0.4 million gain in the Fiscal 2021 Quarter.

Additionally, the Company reflected a net income tax benefit of approximately $0.1 million in the Fiscal 2022 Quarter, attributable to recoverable research and development tax credits generated in the U.K., partially offset by the foreign currency exchange rate effect on deferred tax liability.

Research & Development ("R&D") costs increased by approximately $1.0 million, from approximately $0.5 million during the three months ended June 30, 2020, to approximately $1.5 million during the three months ended June 30, 2021. The increase was primarily attributable to non-cash stock-based compensation expense associated with grants made under the 2021 Equity Incentive Plan in connection with our R&D efforts of $1.0 million.

General and administrative ("G&A") expenses increased by approximately $1.5 million, from approximately $0.5 million during the three months ended June 30, 2020, to approximately $2.0 million during the three months ended June 30, 2021. The principal reason for the increase in the Fiscal 2022 Quarter was the $1.1 million of non-cash stock-based compensation expense associated with the Company's 2021 Equity Incentive Plan. No stock-based compensation expense under the 2021 Equity Incentive Plan was incurred during the three months ended June 30, 2020. Additionally, the Company incurred an increase of $0.3 million in professional fees relating to initiatives associated with a corporate restructuring and public relations/business development. Finally, D&O insurance premiums increased by $0.4 million in the current year period due to market rate increases in the cost of coverage.

As of June 30, 2021, the Company had cash and cash equivalents of approximately $28.6 million and total current liabilities of approximately $2.5 million (inclusive of approximately $0.7 million warrant liability settleable on a non-cash basis). For the three months ended June 30, 2021, the Company is reporting a net loss of approximately ($3.2) million and cash used in operating activities of approximately $1.6 million. As of July 31, 2021, the Company had approximately $28.0 million of cash on hand.

About Portage Biotech Inc.
Portage is a clinical-stage immuno-oncology company advancing first-in-class therapies that target known checkpoint resistance pathways to improve long-term treatment response and quality of life in patients with evasive cancers. The Company's access to next-generation technologies coupled with a deep understanding of biological mechanisms enables the identification of the most promising clinical therapies and product development strategies that accelerate these medicines through the translational pipeline. Portage's portfolio consists of five diverse platforms, leveraging delivery by intratumorals, nanoparticles, liposomes, aptamers, and virus-like particles. Within these five platforms, Portage has 10 products currently in development with multiple clinical readouts expected over the next 12-24 months. For more information, please visit www.portagebiotech.com , follow us on Twitter at @PortageBiotech, or find us on LinkedIn at Portage Biotech Inc.

Forward-Looking Statements

This news release contains statements about the Company's information that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.

FOR MORE INFORMATION, PLEASE CONTACT:

Investor Relations

Chuck Padala
chuck@lifesciadvisors.com

Media Relations
Gwen Schanker
gschanker@lifescicomms.com

-tables to follow-


PORTAGE BIOTECH INC.
Condensed Consolidated Interim Statements of Operations and Comprehensive (Loss)
(U.S. Dollars in thousands, except per share amounts)

Three Months Ended
June 30, 2021 June 30, 2020
Expenses
Research and development $ 1,546 $ 452
General and administrative expenses 2,047 521
Loss from operations (3,593 ) (973 )
Change in fair value of warrant liability 369 -
Share of (loss) income in associates accounted for using equity method (44 ) 440
Interest (expense) (34 ) (122 )
Loss before provision for income taxes (3,302 ) (655 )
Income tax benefit 79 -
Net (loss) (3,223 ) (655 )
Other comprehensive income (loss)
Unrealized gain on investments - 78
Total comprehensive (loss) for period $ (3,223 ) $ (577 )
Net (loss) income attributable to:
Owners of the Company $ (3,066 ) $ (696 )
Non-controlling interest (157 ) 41
$ (3,223 ) $ (655 )
Comprehensive (loss) income attributable to:
Owners of the Company $ (3,066 ) $ (618 )
Non-controlling interest (157 ) 41
$ (3,223 ) $ (577 )
(Loss) per share
Basic and diluted $ (0.25 ) $ (0.06 )
Weighted average shares outstanding
Basic and diluted 12,213 11,104


PORTAGE BIOTECH INC.
Condensed Consolidated Interim Statements of Financial Position
(U.S. Dollars in thousands)

As of, June 30,
2021
March 31,
2021
(Audited)
Assets
Current assets
Cash and cash equivalents $ 28,617 $ 2,770
Prepaid expenses and other receivables 1,995 2,176
30,612 4,946
Long-term assets
Long-term portion of other receivables 22 22
Investment in associate 1,691 1,735
Investments in private companies 7,409 7,409
Goodwill 43,324 43,324
In-process research and development 117,388 117,388
Other assets 36 36
Total assets $ 200,482 $ 174,860
Liabilities and Equity
Current liabilities
Accounts payable and accrued liabilities $ 1,605 $ 1,938
Warrant liability 751 1,120
Unsecured notes payable 150 150
2,506 3,208
Non-current liabilities
Deferred tax liability 24,171 24,050
24,171 24,050
Total liabilities 26,677 27,258
Shareholders' Equity
Capital stock 157,895 130,649
Stock option reserve 10,059 7,977
Accumulated other comprehensive income 958 958
Accumulated deficit (41,201 ) (38,135 )
Total equity attributable to owners of the Company 127,711 101,449
Non-controlling interest 46,094 46,153
Total equity $ 173,805 $ 147,602
Total liabilities and equity $ 200,482 $ 174,860
Commitments and Contingent Liabilities

COMTEX_392430618/2471/2021-08-30T08:01:00

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/zigman2/quotes/205701577/composite
US : U.S.: Nasdaq
$ 13.49
-1.24 -8.42%
Volume: 68,054
Dec. 1, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$196.55 million
Rev. per Employee
N/A
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