REG - Genflow Biosciences - Half-year results
30/09/2022 07:00
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RNS Number : 3100B Genflow Biosciences PLC 30 September 2022
PRESS RELEASE
30 September 2022
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 2022.
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 2022.
Following the Company's successful listing to the Standard Segment of the
London Stock Exchange in January 2022 ("Admission"), making it the first
longevity focussed company listed in Europe, it quickly (March 2022) secured a
non-dilutive research grant award of up to €3.375m from the regional
government of Wallonia in southern Belgium SPW ("Grant"). The Grant will
cover two years of costs of the pre-clinical research and development program
'AAV/SIRT6 Gene Therapy for the Treatment of Progeria' conducted by our
subsidiary, Genflow Biosciences Srl ("Genflow BE"), within the European
Community. The total financed program is for up to €3,375,770 covering 70%
of the Group's EU research and development. These funds are in addition to
the placing monies the Company received from its oversubscribed placing at
Admission.
During the period, the Company was pleased to announce it had entered into
collaborative research agreements with some of the most prestigious
organisations in the biotechnology space.
In March 2022, the Company commenced a scientific research collaboration with
the University of Rochester's Aging Research Center (RoAR), one of the world's
pre-eminent age research facilities. The collaborative research will be
spearheaded by a member of the Company's scientific advisory board, Dr Vera
Gorbunova, who is an internationally acclaimed leading scientist in the areas
of DNA repair and the aging process. The data obtained from the collaboration
will support the pre-clinical trials Genflow is undertaking and will expedite
its development of gene therapies.
Further to this, in May 2022, the Company entered into a collaborative
research agreement with Organips, a France-based biotechnology company founded
by Prof Jean Marc Lemaitre. The research programme entitled "Evaluation of
SIRT6 Activity On iPSC Derived WRN Liver Organoids As A Prerequisite For SIRT6
Therapy", will seek to demonstrate both the safety, and efficacy, of SIRT6 in
reliable Werner syndrome models. Organips has significant expertise in taking
old cells and rejuvenating them, and Prof Jean Marc Lemaitre (who has
published several papers on reprogramming cells), is a leader in this field
and has filed several patents.
The most recent partnership (entered into in late June 2022) is with Magnitude
Biosciences Limited ("Magnitude"), a UK-based, specialist biotechnology
research organisation that supports drug discovery and product development.
Magnitude leverages Artificial Intelligence and uses nematode worms, called C.
elegans, for in-vivo testing in aging research, to accelerate early,
pre-clinical drug development for biotech and pharmaceutical firms. Its
sophisticated 'Magnitude Biosciences Healthspan technology' enables it to
monitor large numbers of C. elegans under multiple conditions and effectively
assess the impact of compounds on health and longevity.
Through the collaboration with Magnitude, Genflow's future therapeutic
developments will be accelerated by Magnitude's innovative technology which
has the capacity to significantly expedite product development, supported by
sophisticated machine monitoring.
Changes to the Board of Directors
In June 2022, the Company welcomed two new Independent Non-Executive
Directors, Tamara Joseph and Dr Guy-Charles Fanneau de la Horie, to its Board
of Directors.
Tamara has extensive experience in both early-stage and commercial biotech
companies in the US. Her outstanding track record in biotechnology, with
particular exposure to listed firms in the US, dovetails with Genflow's
growing exposure in the US following its recent distinguished collaborations
summarised above.
Dr Guy-Charles has built, and led, biotech executive teams over the past 20
years where he has acted as Chief Executive Officer and successfully led IPOs
and completed multiple fundraisings. His expertise in the biotechnology field
and in capital markets specifically, will be an invaluable asset for Genflow
as the Company continues to grow and perform against its stated strategy.
In June 2022, the Company also announced the resignation of Dr Gabrielle
Silver who stepped down from the Board to focus on her other board roles, and
Professor Andrew Scott who stepped down in order to devote more time to his
research and writing, aimed at raising awareness around longevity.
Financial Overview
As at 30 June 2022, the Group had cash reserves of £2,945,624, up from
£224,004 as at 1 January 2022 and the Company remains debt free.
On 17 January 2022, the Company successfully listed on the Standard Segment of
the London Stock Exchange. The fundraise at the time of Admission consisted
of issuing 47,036,500 Ordinary Shares at 8p, receiving placing proceeds of
£3,499,516 net of commissions.
Administration expenses for 30 June 2022 totalled £696,402 (30 June 2021:
£372,291), which primarily consisted of legal and professional fees totalling
£267,535 for the period (30 June 2021: £135,431), which are largely
associated with Admission. The Group also has costs of £97,304 (30 June 2021:
£75,551) in respect of research and development activities.
Other Comprehensive Income was charged with a translation gain of £14,017
upon converting the Subsidiary's results for the period since acquisition to
GBP.
Future
On behalf of the Board, I thank you for your continued support and look
forward to continuing to build on Genflow's position in the longevity sector
both in Europe and the US. The strategic collaborations combined with the deep
expertise of Genflow's management team and the Company's strong cash position,
enables us to look to the future with confidence.
Yassine Bendiabdallah
Chairman
Consolidated Statement of Financial Position
As at 30 June 2022
Note
Unaudited Unaudited Audited
30 June 2022 30 June 2021 31 December 2021
Current assets
Trade and other receivables 70,527 33,473 52,547
Cash and cash equivalents 2,945,624 535,919 224,004
Total Current assets 3,016,151 569,392 276,551
Total assets 3,016,151 569,392 276,551
Current liabilities
Trade and other payables 149,288 133,990 221,427
Total Current liabilities 149,288 133,990 221,427
Total liabilities 149,288 133,990 221,427
Net Assets 2,866,863 435,402 55,124
Equity
Share capital 6 87,752 22,886 73,371
Share premium 4,190,900 659,807 633,765
Other reserves 170,200 126,771 156,183
Retained earnings/loss (1,581,989) (374,062) (808,195)
Total equity 2,866,863 435,402 55,124
The financial statements were approved and authorised for issue by the Board
of Directors on 29 September 2022 and were signed on its behalf by:
Eric Leire
Chief Executive Officer
Consolidated Statement of Comprehensive Income
For The Six Months Ended 30 June 2022
Notes Unaudited Unaudited Audited
6 Months ended 6 Months ended Year ended
30 June 2022 30 June 2021 31 December 2021
Administrative expenses 4 (696,402) (372,291) (938,096)
Other losses (77,082) (1,771) (50,000)
Operating loss (773,484) (374,062) (988,096)
Finance income/(costs) (310) - (99)
Gain on revaluation of assets held at fair value through profit and loss - - -
Foreign exchange - - -
Profit/(Loss) before tax (773,794) - (988,195)
Tax - - -
expense
(773,794) (374,062) (988,195)
Loss for the year from continuing operations
- - -
Profit from discontinued operations - assets sold
Loss from discontinued operations - assets held for sale - - -
Profit/ (Loss) for the period / year attributable to owners of the parent (773,794) (374,062) (988,195)
Other Comprehensive (loss) / income:
Items that could be reclassified to profit or loss
Exchange differences on translation of foreign operations 14,017 (43,477) (14,065)
Total comprehensive (loss) / income for the period / year attributable to (759,777) (417,539) (1,002,260)
owners of the parent
Loss per share (cents) from continuing operations attributable to owners of 5 (0.267) (0.17) (0.593)
the Parent - Basic & Diluted
Consolidated Statement of Cash Flows
For The Six Months Ended 30 June 2022
Unaudited Unaudited Audited
6 Months ended 6 Months ended Year ended
30 June 2022 30 June 2021 31 December 2021
Cash flows used in operating activities:
Loss after taxation (773,794) (374,062) (988,195)
Adjustments for:
Share based payments - - 18,960
Impairment of receivables - - 50,000
Net finance income 90 - 99
Increase in trade and other receivables (17,980) (33,658) (49,668)
Increase in trade and other payables (139) 154,558 221,427
Foreign exchange 14,017 3,247 -
Net cash outflow from operating activities (777,806) (249,915) (747,377)
Cash flow used in investing activities:
Cash acquired through business combinations - 198,502 198,502
Loans granted to subsidiaries - - -
Net cash used in investing activities - 198,502 198,502
Cash flow from financing activities:
Proceeds from issue of shares 3,762,830 587,332 783,711
Cost of share issue (263,404) - -
Net cash generated from financing activities 3,499,426 587,332 783,711
Net (decrease)/increase in cash and cash equivalents 2,721,620 535,919 224,004
Cash and cash equivalents at beginning of period / year 224,004 - -
Cash and cash equivalents at end of period 2,945,624 535,919 224,004
Non- Cash Investing and Financing Activities
Unaudited 6 months ended 30 June 2022 - 900,000 Ordinary shares were issued at
nominal value as non-cash consideration to three Directors of the Company in
lieu of fees.
Unaudited 6 months ended 30 June 2022 - 203,833,878 Ordinary shares were
issued at nominal value as non-cash consideration for the acquisition of
Genflow Biosciences Srl, as part of a share for share exchange arrangement.
Audited Year ended 31 December 2021 - 8,500,00 Ordinary Shares were issued at
nominal value and 474,000 new Ordinary Shares at a price of 4 pence per share
in lieu of fees totalling £18,960.
Consolidated Statement of Changes In Equity
For The Six Months Ended 30 June 2022
Share capital Share Shares
premium to be issued Other reserves Retained earnings/loss
Total
Unaudited- 30 June 2022
At 1 January 2022 73,371 633,765 - 156,183 (808,195) 55,124
Loss of the period - - - - (773,794) (773,794)
Exchange differences on translation of foreign operations - - - 14,017 - 14,017
Total comprehensive income for the period - - - 14,017 (773,794) (759,777)
Transactions with owners
Issue of share capital 14,111 3,748,809 - - - 3,762,920
Costs of issue - (263,404) - - - (263,404)
Share based payments 270 71,730 - - - 72,000
Total Transactions with owners 14,381 3,557,135 - - - 3,571,516
At 30 June 2022 (unaudited) 87,752 4,190,900 - 170,200 (1,581,989) 2,866,863
Unaudited- 30 June 2021
At 18 January 2021 - - - - - -
Loss of the period - - - - (374,062) (374,062)
Other comprehensive income for the period - - - (43,477) - (43,477)
Total comprehensive profit/(loss) for the period - - - (43,477) (374,062) (417,539)
Transactions with Owners
Issue of ordinary shares 22,886 659,807 - - - 682,693
Acquisition of subsidiaries under common control - - - 170,248 - 170,248
Total Transactions with owners 22,886 659,807 - 170,248 - 852,941
At 30 June 2021 (unaudited) 22,886 659,807 - 126,771 (374,062) 435,402
Audited- 31 December 2021
At 18 January 2021 - - - - - -
Loss for the year - - - - (988,195) (988,195)
Exchange differences on translation of foreign operations - - - (14,065) - (14,065)
Total comprehensive profit/(loss) for the period - - - (14,065) (988,195) (1,002,260)
Transactions with Owners
Issue of ordinary shares 27,597 859,539 - - - 887,136
Issue of bonus shares 45,774 (45,774) - - - -
Capital Reduction - (180,000) - - 180,000 -
Merger of entity under common control - - - 170,248 - 170,248
Total Transactions with owners 73,371 633,765 - 170,248 180,000 1,057,384
At 31 December 2021 (audited) 73,371 633,765 - 156,183 (808,195) 55,124
1. Reporting Entity
Genflow Biosciences Plc (the "Company" or the "Group") is a company domiciled
in the United Kingdom. The consolidated interim financial information as at
and for the six months ended 30 June 2022 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 2021 are available upon request from the Company's
registered office at Suite 1, 15 Ingestre Place, London, England, W1F 0DU or
at genflowbio.com (http://genflowbio.com/) .
2. BASIS OF PREPARATION
The financial information set out in this report is based on the consolidated
financial information of Genflow Biosciences Plc and its subsidiary companies.
The financial information of the Group for the 6 months ended 30 June 2022 was
approved and authorised for issue by the Board on 29 September 2022. 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 Genflow Biosciences Plc for the year
ended 31 December 2021 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 2021 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 Genflow
Biosciences Plc and its subsidiaries undertakings as at 30 June 2022. The
corresponding amounts are for the year ended 31 December 2021 and for the 6
month period ended 30 June 2021.
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 2022 and will be adopted in the 2022
annual financial statements.
A number of new standards, amendments and became effective on 1 January 2022
and have been adopted by the Group. None of these standards have materially
affected the Group.
3. GOING CONCERN
Although the Group's assets are not generating revenue streams, an operating
loss has been reported and an operating loss is expected in the 12 months to
30 June 2023, 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 18 months from the date of approval of
these financial statements. During the period, the Company received net
proceeds of £3,499,516 from the issuance of 47,036,500 Ordinary Shares, and
the Group has retained the majority of these funds with £2,945,624 in cash at
the period end. During the period, the Group received notification that it had
been awarded a non-dilutive research grant award of up to €3.375m from the
regional government of Wallonia in southern Belgium. The funds are yet to be
received, however management hope to use the funds to expedite certain phases
of its planned research and development. Management has prepared forecast
covering 18 month post-period end and believe that current cash reserves will
adequately cover the working capital requirements of the Group in addition to
meeting research and development commitments.
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 Annual Report and financial statements.
4. EXPENSES BY NATURE
Unaudited Unaudited Audited
6 Months ended 6 Months ended Year ended
30 June 2022 30 June 2021 31 December 2021
Directors' fees 172,851 18,534 166,441
Professional, legal and consulting fees 267,535 135,431 386,325
PR and marketing 89,935 18,960 138,933
Accounting related services 591 27,103 95,530
Insurance 17,305 - 4,340
Office and administrative expenses 2,303 6,394 3,531
IT and software services 396 16,479 27,199
Travel and entertainment 15,062 2,048 6,668
Research and development costs 97,304 75,551 86,044
AIM costs 26,177 66,729 18,960
Other expenses 6,943 5,062 4,125
Total administrative expenses 696,402 372,291 938,096
5. PROFIT/(LOSS) PER SHARE
Unaudited Unaudited Audited
6 Months ended 6 Months ended Year ended
30 June 2022 30 June 2021 31 December 2021
Net loss for the year from continued operations attributable to equity (773,794) (374,062) (988,195)
shareholders
Weighted average number of shares for the period/year 289,858,193 216,113,467 166,669,960
Basic profit/(loss) per share for continued operations (expressed in pence) (0.267) (0.17) (0.593)
6. Share capital
Company Number of shares Ordinary shares Share premium Total
£ £ £
Issued and fully paid
Issued on incorporation 100 1 - 1
Issue of new shares - 25 March 2021 6,312,500 630 251,869 252,499
Issue of new shares - 1 April 2021 203,833,878 20,383 - 20,383
Issue of new shares - 2 June 2021 18,724,000 1,872 407,938 409,810
At 30 June 2021 228,870,478 22,886 659,807 682,693
Issue of bonus shares on a 2:1 basis - 13 July 2021 457,740,956 45,774 (45,774) -
Consolidation of share capital - 13 July 2021 (457,740,956) - - -
Capital reduction - 13 July 2021 - - (180,000) (180,000)
Issue of Ordinary Shares - 9 November 2021 15,699,640 4,711 199,732 204,443
At 31 December 2021 244,570,118 73,371 633,765 707,136
Issue of Ordinary Shares - 17 January 2022 47,936,500 14,381 3,820,539 3,834,920
Deduction of cost of capital - - (263,404) (263,404)
At 30 June 2022 292,506,618 87,752 4,190,900 4,278,652
On 17 January 2022, the Company issued and allotted 47,036,500 new Ordinary
Shares at a price of 8 pence per share for gross proceeds of £3,762,920. On
the same day, the Company issued and allotted 900,000 new Ordinary Shares at
nominal value in lieu of fees of £72,000.
7. COMMITMENTS
The commitments stated in the Group's Annual Financial Statements for the year
ended 31 December 2021 remain in place.
8. EVENTS AFTER THE REPORTING DATE
On 15 July 2022 and 18 July 2022, Eric Leire, a director of the company,
purchased 308,999 ordinary shares at a weighted average price per ordinary
share of 3.03p.
On 18 July 2022, Yassine Bendiabdallah, Chairman of the Company, and Peter
King-Lewis, a non-executive director of the Company, each purchased 108,000
and 82,000 ordinary shares respectfully, both at a weighted average price per
ordinary share of 0.037.
On 18 August 2022, Eric Leire, a director of the company, purchased 106,000
ordinary shares at a weighted average price per ordinary share of 2.8p.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of Regulation (EU) No
596/2014 until the release of this announcement.
For further information please contact:
Genflow Biosciences Plc
Dr Eric Leire via Tancredi +44 203 434 2330
Chief Executive
Clear Capital Markets Ltd
Corporate Broker +44 203 869 6086
Jonathan Critchley +44 203 897 0981
Keith Swann
Tancredi Intelligent Communication
Media Relations
Salamander Davoudi +44 7957 549 906
Helen Humphrey +44 7449 226 720
Benedetta Negri da Oleggio +44 7838 029 970
genflowbio@tancredigroup.com
About Genflow
Genflow is a UK-based biotechnology company established in 2020. The Company
is developing gene therapies designed to target the aging process and to
reduce and delay the incidence of age-related diseases. This will be done
through novel therapeutics targeting aging in humans by using adeno-associated
virus ("AAV") vectors to deliver copies of the Sirtuin-6 ("SIRT6") gene
variant that is found in centenarians into cells.
Its mission is to increase understanding of the factors that control and
impact lifespan. Genflow researches, develops, and commercialises therapeutic
solutions to lengthen health span, the amount of time we live in good health,
creating biological interventions that enable longer and healthier lives.
Genflow is dedicated to the development and commercialisation of novel
therapeutics targeting aging in dogs and humans. By treating aging, Genflow
can contribute to a decrease in healthcare costs and lessen the emotional and
societal burden that comes with an aging population.
To learn more visit www.genflowbio.com (http://www.genflowbio.com)
-Ends-
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