REG - Genflow Biosciences - Half-year Report
30/09/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240930:nRSd1227Ga&default-theme=true
RNS Number : 1227G Genflow Biosciences PLC 30 September 2024
PRESS RELEASE
30 September 2024
Genflow Biosciences Plc
("Genflow" or "the Company")
HALF YEAR RESULTS
Genflow (LSE: GENF) is pleased to announce its half year results for the
six-month period ended 30 June 2024.
Chairman's Statement
It is with pleasure that I take this opportunity to update shareholders of
Genflow Biosciences Plc ("Genflow" or the "Company") on the Company's
performance during the first six months of 2024.
Over the six months to 30 June 2024, the Company has made strides in its
principal longevity programs: MASH (Metabolic Dysfunction-Associated
Steatohepatitis) and Werner Syndrome.
In June, we updated shareholders on the momentum created with respect to our
pre-clinical programs in MASH, and the guidance expected to be received from
the FDA in the future. This guidance, which we anticipate receiving in the
future, is expected to come through the FDA's Initial Targeted Engagement for
Regulatory Advice on CBER Products (INTERACT), as a result of the Company
submitting a comprehensive briefing package conducted with our lead drug
candidate, GF-1002, for the treatment of MASH. In the meantime, the FDA has
encouraged Genflow to proceed with its plans to identify appropriate animal
models through pilot proof-of-concept ("POC") studies. Specifically, we have
established a functional 3-D organoids of liver using cells from Werner
patients. This organoid testing helps reduce the need for animal models in
our scientific research. Organoids are miniature, lab-grown versions of human
organs or tissues that mimic the structure and function of their real
counterparts. By using these organoids, we can model human Werner Syndrome and
better test response of our SIRT6 based gene therapy in a more human-relevant
environment, rather than relying on unreliable animal models.
Additionally, we have initiated a feasibility study with a Contract
Development Manufacturing Organization (CDMO), Exothera S.A, to assess the
ability to produce its future MASH clinical lot in accordance with Good
Manufacturing Practices (GMP). We are also in the process of selecting
Contract Research Organizations (CROs) to conduct our upcoming dog clinical
trial, aimed at studying our simplified Nake DNA version of our Centenarian
SIRT6 drug candidate, GF-1004. We will provide updates in relation to our
veterinary study in due course.
Over the period, we have also been working on two exciting collaborations
supported by non-diluting and non-reimbursable research grants from the
Government of Wallonia in Belgium, as follows;
· Sarcopenia research program with Revatis SA - focusing on the
development of muscle progenitor cells which will be loaded with Genflow's
proprietary SIRT6 for the prevention and treatment of sarcopenia, the
age-related loss of muscle mass and function. Genflow aims to counteract the
detrimental effects of aging on muscle tissue with our sarcopenia program,
which holds potential for significantly improving the quality of life for
older adults affected by muscle loss and weakness.
· Exosome-mRNA project with EXO Biologics - which aims to deliver a
therapeutic product composed of exosomes encapsulating an AAV or mRNA encoding
SIRT6. The exosome therapy will be designed to target liver fibrosis (MASH)
and Werner Syndrome, potentially leading to groundbreaking treatments for both
diseases.
During the period, the Company has received grant funding of totalling
€777,281 in respect of these projects, with further financial support
committed in the first half of 2025.
In addition, Genflow Biosciences SRL, received €350,000 in April 2024, from
the regional government of Wallonia - Belgium Service Public de Wallonie,
representing the second tranche of this awarded grant recognised in the
previous year, 2023.
Further strengthening the Company's financial position and increasing its
institutional investor base, the Company completed a placing and subscription
to which raised £715,000 (before expenses) during the period. We were
privileged to have Premier Miton, a well-known UK institution, participate in
this fundraise.
Financial Overview
As of 30 June 2024, the Group had cash reserves of £1,139,859 (31 December
2023: £683,974) which has been derived from equity fundraising of £663,600
(net of expenses) and the receipt of research and development grants of
£664,219 (€777,281) and £299,145 (€350,000) The Company remains debt
free.
Administration expenses for 30 June 2024 totalled £1,316,368 (30 June 2023:
£815,477), which primarily consisted of research and development costs of
£938,109 (30 June 2023: £415,157), legal and professional fees totalling
£90,654 (30 June 2023: £103,366) and Directors' fees of £178,656 (30 June
2023: £178,783).
The significant jump in research and development costs for 2024 is in relation
to the advancement of testing, which has transitioned to the in vivo stage,
which is inherently more costly.
Other Comprehensive Income was charged with a translation gain of £8,652 upon
converting the Subsidiary's results for the period to GBP.
Future
On behalf of the Board, I thank you for your continued support. Our commitment
to pioneering therapeutic solutions for longevity has been strengthened by the
support of our collaborative partners and promising feedback from the FDA
during the six-months to 30 June 2024. This encouragement reinforces our
commitment to developing effective therapeutic solutions for age-related
diseases. We remain focused on our mission to improve healthspan, and I look
forward to providing you with further updates as we progress through our work
programs, including clinical dog trials.
Tamara Joseph
Chairman
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 June 2024
Note Unaudited Audited Unaudited
6 Months ended 12 Months ended 6 Months ended
30 June 2024 31 December 2023 30 June 2023
Non-current assets
Property, plant & equipment 3,456 3,394 3,991
Total non-current assets 3,456 3,394 3,991
Current assets
Trade and other receivables 6 207,791 384,285 400,891
Cash and cash equivalents 1,139,859 683,974 1,507,437
Total current assets 1,347,650 1,068,259 1,908,328
Total assets 1,351,106 1,071,653 1,912,319
Current liabilities
Trade and other payables 7 492,761 345,738 194,134
Total current liabilities 492,761 345,738 194,134
Total liabilities 492,761 345,738 194,134
Net Assets 858,345 725,915 1,718,185
Equity
Share capital 8 104,912 87,752 87,752
Share premium 8 4,837,340 4,190,900 4,190,900
Other reserves 9 212,577 219,488 204,592
Retained earnings (4,296,484) (3,772,225) (2,765,059)
Total equity 858,345 725,915 1,718,185
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2024
Notes Unaudited Audited Unaudited
6 Months ended 12 Months ended 6 Months ended
30 June 2024 31 December 2023 30 June 2023
Other operating income 792,109 169,854 194,068
Administrative expenses 4 (1,316,368) (1,798,559) (815,477)
Operating loss (524,259) (1,628,705) (621,409)
Finance costs - - (130)
Loss before tax (524,259) (1,628,705) (621,539)
Tax - - -
expense
Loss for the period / year attributable to owners of the parent (524,259) (1,628,705) (621,539)
Other Comprehensive loss:
Items that could be reclassified to profit or loss
Exchange differences on translation of foreign operations (8,652) (11,853) (26,749)
Total comprehensive loss for the period / year attributable to owners of the (532,911) (1,640,558) (648,288)
parent
Loss per share (pence) from continuing operations attributable to owners of 5 (0.165) (0.557) (0.210)
the Parent - Basic & Diluted
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
Unaudited Audited Unaudited
6 Months ended 12 Months ended 6 months ended
30 June 2024 31 December 2023 30 June 2023
Cash flows used in operating activities:
Loss after taxation (524,259) (1,628,705) (621,539)
Adjustments for:
Depreciation & amortisation 605 1,034 413
Share based payments 1,741 - -
Decrease/(increase) in trade and other receivables 168,964 (131,014) (142,229)
Increase/(decrease) in trade and other payables 154,185 103,228 (107,585)
Foreign exchange - - 26,749
Net cash outflow from operating activities (198,764) (1,655,457) (844,191)
Cash flow used in investing activities:
Purchase of property, plant & equipment (743) (2,439) (4,528)
Net cash used in investing activities (743) (2,439) (4,528)
Cash flow from financing activities:
Proceeds from issue of shares 715,000 - -
Cost of share issue (51,400) - -
Net cash generated from financing activities 663,600 - -
Net increase/(decrease) in cash and cash equivalents 464,093 (1,657,896) (848,719)
Cash and cash equivalents at beginning of period / year 683,974 2,356,225 2,356,225
FX on cash (8,208) (14,355) (69)
Cash and cash equivalents at end of period 1,139,859 683,974 1,507,437
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2024
Share capital Share
premium Other reserves Retained earnings/loss
Total
Unaudited- 30 June 2024
At 1 January 2024 87,752 4,190,900 219,488 (3,772,225) 725,915
Loss of the period - - - (524,259) (524,259)
Exchange differences on translation of foreign operations - - (8,652) - (8,652)
Total comprehensive loss for the period - - (8,652) (524,259) (532,911)
Transactions with owners
Issue of share capital 17,160 697,840 - - 715,000
Costs of issue - (51,400) - - (51,400)
Share based payments - - 1,741 - 1,741
Total Transactions with owners 17,160 646,440 1,741 - 665,341
At 30 June 2024 (unaudited) 104,912 4,837,340 212,577 (4,296,484) 858,345
Unaudited- 30 June 2023
At 1 January 2023 87,752 4,190,900 231,341 (2,143,520) 2,366,473
Loss of the period - - - (621,539) (621,539)
Exchange differences on translation of foreign operations - - (26,749) - (26,749)
Total comprehensive loss for the period - - (26,749) (621,539) (648,288)
Total Transactions with owners - - - - -
At 30 June 2023 (unaudited) 87,752 4,190,900 204,592 (2,765,059) 1,718,185
Audited- 31 December 2023
At 1 January 2023 87,752 4,190,900 231,341 (2,143,520) 2,366,473
Loss for the year - - - (1,628,705) (1,628,705)
Exchange differences on translation of foreign operations - - (11,853) - (11,853)
Total comprehensive loss for the period - - (11,853) (1,628,705) (1,640,558)
Total Transactions with owners - - - - -
At 31 December 2023 (audited) 87,752 4,190,900 219,488 (3,772,225) 725,915
1. Reporting Entity
Genflow Biosciences Plc (the "Company") is a company domiciled in the United
Kingdom. The consolidated interim financial information as at, and for the six
months ended, 30 June 2024 comprise the results of the Company and its
subsidiaries (together referred to as the "Group").
The consolidated financial statements of the Group as at, and for the year
ended, 31 December 2023 are available upon request from the Company's
registered office at 6 Heddon Street, London, W1B 4BT or at genflowbio.com
(http://genflowbio.com/) .
2. BASIS OF PREPARATION
The financial information of the Group for the 6 months ended 30 June 2024 was
approved and authorised for issue by the Board of the Company on 30 September
2024. The interim results have not been audited. This financial information
has been prepared in accordance with the accounting policies that are expected
to be applied in the Report and Accounts of the Company for the year ended 31
December 2023 and are consistent with the recognition and measurement
requirements of IFRS as adopted by the United Kingdom. The comparative
information for the full year ended 31 December 2023 is not the Group's full
annual accounts for that period but has been derived from the annual financial
statements for that period.
The consolidated financial information incorporates the results of the Group
as at 30 June 2024. The corresponding amounts are for the year ended 31
December 2023 and for the 6 month period ended 30 June 2023.
The Group financial information is presented in Pound Sterling and values are
rounded to the nearest pound.
The same accounting policies, presentation and methods of computation are
followed in the interim consolidated financial information as were applied in
the Group's latest annual audited financial statements except for those that
relate to new standards and interpretations effective for the first time for
periods beginning on (or after) 1 January 2024 and will be adopted in the 2024
annual financial statements.
A number of new standards and amendments became effective on 1 January 2024
and have been adopted by the Group. None of these standards have materially
affected the Group.
3. GOING CONCERN
As the Group's assets are not generating revenue, an operating loss has been
reported and an operating loss is expected in the 12 months to 30 June 2025.
However, the Directors believe that the Group will have sufficient funds to
meet its immediate working capital requirements and undertake its targeted
operating activities over the next 12 months from the date of approval of
these financial statements.
As at 30 June 2024, the Group has cash resources of £1,139,859. The Group
received funding during the period to support working capital requirements and
to support its scientific research and development work streams. In April
2024, the Company completed a placing and subscription which raised £715,000
(before expenses); and received the second tranche of the grant from the
Wallonia Region, totalling €350,000. In May 2024, the Group secured further
grant funding of €1.55m, of which €777,273 has been received and the
remainder will be received in 2025.
Management plan to use these funds, and future grant funding, to meet the
working capital requirements of the Group and to further its research and
development activities. In early 2024, management prepared a forecast covering
18-months and believe that current cash reserves plus the receipt of committed
grant funding in 2025 will adequately cover the working capital requirements
of the Group. Notably, all research and development costs are discretionary
and therefore, can be reduced if necessary. However, the Group will need to
seek further funding to progress the Group's research workstreams and to
progress to the clinical trial phase.
As such, the Directors have a reasonable expectation that the Group has, and
will have, future access to adequate resources to continue in operational
existence for the foreseeable future and, therefore, continue to adopt the
going concern basis in preparing the interim financial statements.
4. EXPENSES BY NATURE
Unaudited Audited Unaudited
6 Months ended 12 Months ended 6 Months ended
30 June 2024 31 December 2023 30 June 2023
£ £ £
Directors' fees 178,656 362,312 178,783
Directors' pensions 713 1,093 381
Directors' social security contributions 5,069 14,945 8,245
Fees payable to the Company's auditors for the audit of the Parent Company and 5,000 53,285 -
group financial statements
Professional, legal and consulting fees 90,654 215,971 103,366
PR and marketing 48,535 106,819 63,903
Accounting related services 3,780 7,839 8,638
Insurance 19,595 22,476 19,563
Office and administrative expenses 10,777 18,897 5,092
IT and software services 7,377 5,828 1,492
Travel and entertainment 927 23,830 13,255
Research and development costs 938,109 960,314 415,157
Share based payments 1,741 - -
Depreciation 610 1,034 -
Other expenses 4,825 3,196 (2,398)
Total administrative expenses 1,316,368 1,798,559 815,477
5. LOSS PER SHARE
Unaudited Audited Unaudited
6 Months ended 12 Months ended 6 Months ended
30 June 2024 31 December 2023 30 June 2023
£ £ £
Net loss for the year from continued operations attributable to equity 524,259 1,628,705 621,539
shareholders
Weighted average number of shares for the period/year 318,085,714 292,506,618 292,506,618
Basic loss per share for continued operations (expressed in pence) (0.165) (0.557) (0.210)
6. TRADE AND OTHER DEBTORS
Trade and other debtors Unaudited
6 Months ended Audited Unaudited
30 June 2024 12 Months ended 6 Months ended
£ 31 December 2023 30 June 2023
£ £
VAT receivable 46,011 36,278 48,205
Prepayments 158,748 41,041 22,854
Other receivables 3,032 306,966 329,832
207,791 384,285 400,891
Trade and other receivables are all due within one year. The fair value of all
receivables is the same as their carrying values stated above. These assets,
excluding prepayments, are the only form of financial asset within the Group,
together with cash and cash equivalents. There are no trade receivables
therefore an aging analysis has not been provided.
7. TRADE AND OTHER PAYABLES
Unaudited
6 Months ended Audited Unaudited
30 June 2024 12 Months ended 6 Months ended
£ 31 December 2023 30 June 2023
£ £
Trade payables 442,221 254,695 143,654
Accruals 32,841 60,014 34,012
Other payables 17,699 31,029 16,468
492,761 345,738 194,134
All trade and other payables are due for payment within twelve months. Trade
payables are settled within normal commercial terms, usually between 30-60
days.
8. Share capital
Company Number of shares Ordinary shares Share premium Total
£ £ £
Issued and fully paid
At 1 January 2023 292,506,618 87,752 4,190,900 4,278,652
At 30 December 2023 292,506,618 87,752 4,190,900 4,278,652
Issue of Ordinary Shares 57,200,000 17,160 697,840 715,000
Deduction of cost of capital - - (51,400) (51,400)
At 30 June 2024 349,706,618 104,912 4,837,340 4,942,252
On 9 Aril 2024, the Company issued and allotted 57,200,000 new Ordinary Shares
at a price of 0.0125 pence per share for gross proceeds of £715,000
(excluding expenses).
9. Share WARRANT reserve
The balance held in the share options reserve relates to the fair value of the
share warrants that have been charged to the profit or loss since adoption of
IFRS 2 'Share-based payment'.
Warrants:
At 30 June 2024, 2,860,000 warrants over shares were exercisable (31 December
2023: No warrants were exercisable).
2,860,000 warrants were granted during the year (31 December 2023: No warrants
granted) pursuant to the terms of a placing of shares.
During the period ended 30 June 2024, no warrants were exercised (year ended
31 December 2023: No warrants were exercised) and no warrants expired in the
period (year ended 31 December 2023: No warrants expired).
£1,741 was charge to loss for the year in respect of outstanding warrants
(2023: Nil).
10. COMMITMENTS
The commitments stated in the Group's Annual Financial Statements for the year
ended 31 December 2023 remain in place.
11. EVENTS AFTER THE REPORTING DATE
There were no events after the reporting period.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation ("MAR")
(EU) No. 596/2014, as incorporated into UK law by the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement, this inside
information is now considered to be in the public domain.
Contacts
Genflow Biosciences Harbor Access
Dr Eric Leire, CEO Jonathan Paterson, Investor Relations
+32-477-495-881 +1 475 477 9401
Jonathan.Paterson@Harbor-access.com
Corporate Brokers
Capital Plus Partners Ltd
Keith Swann, +44 0203 821 6169
Jon Critchley, +44 0203 821 6168
About Genflow Biosciences
Founded in 2020, Genflow Biosciences Plc. (LSE:GENF) (OTCQB:GENFF), a
biotechnology company headquartered in the UK with R&D facilities in
Belgium, is pioneering gene therapies to decelerate the aging process, with
the goal of promoting longer and healthier lives while mitigating the
financial, emotional, and social impacts of a fast-growing aging global
population. Genflow's lead compound, GF-1002, works through the delivery of a
centenarian variant of the SIRT6 gene which has yielded promising preclinical
results. Scheduled to begin in 2025, Genflow's clinical trial aims to explore
the potential benefits of GF-1002 in treating MASH (Metabolic
Dysfunction-Associated Steatohepatitis), the most prevalent chronic liver
disease for which there is no effective treatments. Please
visit www.genflowbio.com (http://www.genflowbio.com/) and follow the
Company on LinkedIn and Twitter/X.
DISCLAIMER
The contents of this announcement have been prepared by, and are the sole
responsibility of, the Company.
This announcement may contain forward-looking statements. The forward-looking
statements include, but are not limited to, statements regarding the Company's
or the Directors' expectations, hopes, beliefs, intentions or strategies
regarding the future. In addition, any statement that refers to projections,
forecasts or other characterisations of future events or circumstances,
including any underlying assumptions, is a forward-looking statement. The
words "anticipate", "believe", "continue", "could", "estimate", "expect",
"intend", "may", "might", "plan", "possible", "potential", "predict",
"project", "seek", "should", "would" and similar expressions, or in each case
their negatives, may identify forward-looking statements, but the absence of
these words does not mean that a statement is not forward-looking.
Forward-looking statements include all matters that are not historical facts.
Forward-looking statements are based on the current expectations and
assumptions regarding the Company, the business, the economy and other future
conditions. Because forward-looking statements relate to the future, by their
nature, they are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. Forward-looking statements are
not guarantees of future performance and the Company's actual financial
condition, actual results of operations and financial performance, and the
development of the industries in which it operates or will operate, may differ
materially from those made in or suggested by the forward-looking statements
contained in this announcement. In addition, even if the Company's financial
condition, results of operations and the development of the industries in
which it operates or will operate, are consistent with the forward-looking
statements contained in this announcement, those results or developments may
not be indicative of financial condition, results of operations or
developments in subsequent periods. Important factors that could cause actual
results to differ materially from those in the forward-looking statements
include regional, national or global, political, economic, social, business,
technological, competitive, market and regulatory conditions.
Any forward-looking statement contained in this announcement applies only as
of the date of this announcement and is expressly qualified in its entirety by
these cautionary statements. Factors or events that could cause the Company's
actual plans or results to differ may emerge from time to time, and it is not
possible for the Company to predict all of them. The Company expressly
disclaims any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained in this announcement to
reflect any change in its expectations or any change in events, conditions or
circumstances on which any forward-looking statement contained in this
announcement is based, unless required to do so by applicable law, the
Prospectus Regulation Rules, the Listing Rules, the Disclosure Guidance and
Transparency Rules of the FCA or the UK Market Abuse Regulation.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR BKLFLZKLXBBERecent news on Genflow Biosciences
See all newsREG - Genflow Biosciences - Holding(s) in Company
AnnouncementREG - Genflow Biosciences - Share Subscription, Director's Dealing and Update
AnnouncementREG - Genflow Biosciences - Final Results
AnnouncementRCS - Genflow Biosciences - Launch of AI-Powered Partnership
AnnouncementREG - Official List - Official List Notice
Announcement