REG - Immupharma PLC - Finals results for y/e 31 December 2021
25/05/2022 07:00
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RNS Number : 6634M Immupharma PLC 25 May 2022
RNS:
RELEASE
25 May 2022
ImmuPharma PLC
("ImmuPharma" or the "Company")
FINAL RESULTS ANNOUNCEMENT
for the year ended 31 December 2021
ImmuPharma PLC (LSE:IMM), ("ImmuPharma" or the "Company"), the specialist drug
discovery and development company, is pleased to announce its final results
for the twelve months ended 31 December 2021 (the "Period").
Key Highlights (including post Period review)
· Loss for the Period of £8.2m (£6.9m at 31 December 2020)
· Research and development expenses of £3.7m (31 December 2020:
£2.4m)
· Administrative expenses of £1.0m (31 December 2020: £1.8m)
· Exceptional items of £1.4m (31 December 2020: £Nil),
representing corporate reorganisation costs
· Expected cost savings after corporate reorganisation (commencing
from 2022) of approximately £1.1m per annum in committed overheads cost
(excluding R&D project cost), a decrease of around 50%, including
reduction of costs relating to Board and connected parties of £0.5m per annum
· Cash balance at 31 December 2021 of £1.6m (31 December 2020:
£5.9m)
· Successful subscription and placing, raising in total £3.55m
(gross) - December 2021
· Lanstead derivative financial asset of £0.9m (31 December 2020:
£1.2m)
· Incanthera financial asset of £1.2m (£1.8m at 31 December 2020)
and warrants financial asset of £0.2m (£0.6m at 31 December 2020)
· Convertible loan notes of £Nil (£0.6m at 31 December 2020).
Convertible loan notes repaid, totalling £0.8m (with accrued interest)
'Autoimmunity': Lupuzor™ ("P140")
· P140 Pharmokinetic ("PK") study successfully completed with key
endpoints met. Subcutaneous injection of P140 in 200 mcg and 800 mcg doses
showed a clear time and dose-related PK profile, detectable in the blood of
human volunteers and applicable for all potential clinical dosing regiments of
P140
· P140 was safe and well tolerated across all doses and in all
subjects
· Discussions continue with potential partners for Lupuzor™
(P140) outside of US in key territories
· P140 for CIDP which is in active preparation for a phase 2/3
clinical study has now been initiated and specialist CRO appointed. Commercial
partnering discussions ongoing
'Anti-Infection'
· BioAMB - further pre-clinical studies expected in second half of
2022. Commercial partnering discussions ongoing
· BioCin - further pre-clinical studies expected in second half of
2022
Commenting on the statement and outlook Tim McCarthy, CEO, said: "2021 brought
significant changes in the leadership of ImmuPharma. We have created positive
and constructive developments within the business, with a focus on delivery of
pipeline progression, meeting key future milestones and having a much more
commercially driven corporate strategy.
"With now a fully reviewed and assessed R&D development pipeline, we
remain focused on bringing our two late-stage clinical assets, Lupuzor™ and
P140 for CIDP closer to the market. Specifically, on Lupuzor™, our partner
Avion, is committed to moving this program into Phase 3 as soon as possible,
following final discussions with the FDA and based on the positive readout of
the recent PK study. We are also focused on ensuring earlier stage assets,
specifically within anti-infectives, progress, with a key strategy on securing
partnering opportunities over the medium term.
We were delighted to secure the successful fundraising in late 2021, as it
demonstrated that our corporate repositioning efforts, since the Board
changes, were recognised by our existing shareholders and partner, Avion
(Alora Pharmaceuticals).
"In closing, we look forward to sharing value enhancing newsflow over the next
period, including progress within Lupuzor and our P140 platform. We would also
like to thank our shareholders for their continuing support, particularly
through the significant changes made over the last year, as well as our staff,
corporate and scientific advisers and our partners including, CNRS and
Avion."
Market Abuse Regulation (MAR) Disclosure
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
For further information please contact:
ImmuPharma PLC (www.immupharma.com (http://www.immupharma.com) ) + 44 (0) 2072 062650
Tim McCarthy, Chief Executive Officer, Chairman
Dr Tim Franklin, Chief Operating Officer
Lisa Baderoon, Non - Executive Director, Head of Investor Relations + 44 (0) 7721 413496
SPARK Advisory Partners Limited (NOMAD) +44 (0) 203 368 8974 (about%3Ablank)
Neil Baldwin
Stanford Capital Partners (Joint Broker) +44 (0) 203 815 8880
Patrick Claridge, John Howes
SI Capital (Joint Broker) +44 (0) 1483 413500
Nick Emerson
ImmuPharma plc
Chairman's Report
2021 was a year of successful evolution and transition for ImmuPharma. Key
board and management restructuring was at the heart of these changes. This was
combined with a complete re-evaluation of our pipeline, focusing on the key
assets, which we believe, can deliver long term shareholder value.
As echoed in recent statements, whilst being one of the most challenging
periods we have been involved with at ImmuPharma, it has been one of the most
exciting periods in the Company's history. This would not have been possible
without the enormous amount of teamwork involved, from both the ImmuPharma
team, its partners and collaborators.
At the epicentre of ImmuPharma throughout 2021, was the continued progress of
our late-stage program, Lupuzor™, in conjunction with our US partner, Avion
Pharmaceuticals ("Avion"), as we moved closer to commencing the pivotal Phase
3 study in 2022. During the second half of 2021, ImmuPharma started
preparations for the commencement of the pharmacokinetic ("PK") study, as
requested by the US Food and Drug Administration ("FDA"). The PK study has
been successfully completed in April 2022.
In December 2021 we successfully raised £3.55m (gross), which was supported
by our US partner, Avion and longstanding shareholder, Lanstead Capital.
Outside of the US, ImmuPharma continued to explore opportunities with other
potential commercial partners for Lupuzor™ and also within the Company's
extended pipeline.
Lupuzor™ - opportunity and next steps
There are an estimated five million people globally suffering from lupus, with
approximately 1.5 million patients in the US, Europe and Japan (Source: Lupus
Foundation of America). Current 'standard of care' treatments, including
steroids and immunosuppressants, can potentially have either serious side
effects for patients or limited efficacy, with over 60 per cent of patients
not adequately treated.
ImmuPharma believes Lupuzor™ has the potential to be a novel specific drug
therapy for the treatment of Lupus by specifically modulating the immune
system and halting disease progression in a substantial proportion of
patients.
Lupuzor™ has a unique mechanism of action that does not suppress the immune
system and which normalises the over-activity of CD4 T-cells which are
involved in the cell-mediated immune response which leads to the lupus
disease. Lupuzor™, taken over the long term, as indicated in earlier stage
clinical trials, has the potential to prevent the progression of lupus rather
than just treating its symptoms, with the rest of the immune system retaining
the ability to work normally.
The Board is confident that there are a number of routes to market for
Lupuzor™, including corporate collaborations. Such a collaboration was
successfully completed at the end of November 2019, resulting in a signed
exclusive Trademark, License and Development Agreement with Avion in the US.
Positive discussions with a number of potential commercial partners for
Lupuzor™ in key territories outside of the US are continuing.
Lupuzor™ and Avion Pharmaceuticals | Background
On 28 November 2019, ImmuPharma and Avion signed an exclusive Trademark,
License and Development Agreement for Lupuzor™, with Avion agreeing to fund
a new international Phase 3 trial and commercialising Lupuzor™ in the US.
Since then, both companies have been working closely on the clinical trial
design and strategy, bolstered by consultation with an eminent group of key
opinion leaders. This tripartite Phase 3 protocol development approach
provided thorough and detailed support for developing the most relevant
clinical trial for Lupuzor™ in systemic lupus erythematosus ("SLE")
patients. Data and results from the first Phase 3 clinical study were analysed
and considered in detail and, as a result, a new optimised international Phase
3 study protocol was approved on the 22 July 2021 by the FDA, subject to prior
successful completion of the PK study.
In the first half of 2021 ImmuPharma provided progress updates to the market
in respect to guidance meetings between the FDA and Avion.
As part of this feedback and as announced on 9 February 2021, the FDA
requested that Avion and ImmuPharma develop and validate a bioanalytical assay
in order to confirm the unique pharmacokinetic ("PK") profile of Lupuzor™/
P140. Principally to demonstrate that P140 shows a positive result within
plasma at the subcutaneous level.
On 24 June 2021 it was announced that following submission by Avion of the PK
methodology study, the FDA would, by written response, approve the PK study
around the end of July 2021.
On 12 August 2021 ImmuPharma announced that the FDA had approved the
commencement of the PK study.
The PK study is a Phase 1 study to assess the presence of Lupuzor™ in the
body after administration of a single dose. The study was carried out in a
total of 24 healthy male volunteers.
Since the approval of the commencement of the PK study by the FDA, we worked
with Avion and our specialist Contract Research Organisation ("CRO"), Simbec
Orion in respect to this study. In preparing the study drug material, we have
taken the opportunity to greatly improve the product characterisation and
analytical method validations. This has resulted in a new proprietary
synthesis of P140 which gives greater IP protection and lowers the cost of
production.
P140 PK study has been successfully completed as announced on 13 April 2022,
with all key endpoints requested by FDA being met. The key highlights from the
study were summarised as below.
Subcutaneous injection of P140 (in both 200 microgram ("mcg") and 800 mcg
doses (note: 1mcg = 1 millionth of a gram) showed a clear time and
dose-related PK profile, which is detectable in the blood of human volunteers
and applicable for all potential clinical dosing regiments of P140.
The final group of subjects completed dosing on 30 March 2022. This was a
group of subjects that received an intravenous injection of a 800 mcg dose of
P140, which showed successful measurement of the absolute bioavailability of
the drug (as a control). In-line with all human dosing to date, P140 was safe
and well tolerated across all doses and in all subjects.
Avion, our US partner, has been integral to the development, initiation and
successful conclusion of this PK study.
Centre National de la Recherche Scientifique (CNRS)
ImmuPharma continues to have important collaboration arrangements with the
Centre National de la Recherche Scientifique ("CNRS"), the French National
Council for Scientific Research and the largest basic research organisation in
Europe. This is where Lupuzor™ /P140 platform was invented by Prof. Sylviane
Muller, Emeritus Research Director at the CNRS. Through this partnership, the
CNRS will be entitled to receive from ImmuPharma, low double-digit royalty
payments of funds received by ImmuPharma from Avion through the Licence and
Development Agreement.
Pipeline Overview
In the second half of 2021, the Board completed a full review of the R&D
activities across the Group which resulted in the Board having the following
conclusions:
There is a depth of scientific knowledge and innovation within the R&D
team in Bordeaux and with the new scientific leadership we expect there to be
a significant improvement in productivity and achievement of product
development targets in the future. There is a need for a focus on those
product developments (see below) which offer the highest probability of both
scientific and commercial success.
Management will concentrate more of their time on identifying and concluding
commercial collaborations and licensing deals across the product portfolio.
Having assessed our current portfolio and resources, the focus will now be on
Autoimmunity, Anti-infection and those product developments which offer
near-term and commercially viable opportunities:
Autoimmunity & Inflammation
The increasing knowledge of P140's mode of action and its relevance to many
autoimmune and inflammatory conditions provides a depth of disease states for
ImmuPharma and its partners to explore in the near future. The therapeutic
potential of P140 goes beyond just lupus, with Chronic Inflammatory
Demyelinating Polyneuropathy ("CIDP") being the next step. This expanding
insight is fundamentally driven by the excellent research partnership between
the Company and Prof. Sylviane Muller, inventor of P140 and Emeritus Research
Director CNRS, France. Key highlights within the progression of the P140
platform are summarized below:
o Lupuzor™ (P140) - successfully completed PK study prior to the
commencement of the optimized Phase 3 study in lupus.
o P140 - CIDP a neurological disorder targeting the body's nerves. Active
preparation for a phase 2/3 clinical study has now been initiated.
o P140 - Other indications. Further clinical applications based on further
preclinical investigation include asthma, Sjogrens syndrome, renal
inflammation in diabetes, periodontitis and gout.
o P140 - Second generation. Our pre-clinical team in Bordeaux, 'ImmuPharma
Biotech' has commenced work to develop a pharmacologically improved version of
P140, a second generation product that aims to further strengthen the IP
position and provide therapies with different improved administration
modalities, yet still maintaining P140 as the active moiety.
Anti-Infection
The innovative peptide technology at ImmuPharma Biotech has been a huge
success and very recently has given rise to a number of novel development
programs, out of which we have identified two core programs, in pre-clinical
development; BioAMB and BioCin, which we believe have the best commercial
opportunity and speed to market.
o BioAMB, a novel peptide-based drug that offers a potential improvement on
the limiting side effects and poor administration regime of current
Amphotericin-B ("AMB") formulations. AMB is one of a last line of agents
against serious and life-threatening fungal infections caused by the
aspergillus family of fungi.
o BioCin, a novel peptide-based drug based on an existing potent
antibacterial used in high medical need cases and in many cases the last line
of defense. BioCin has the potential to offer improved safety and/or
administration benefits.
Euronext de-listing
After careful review of our listing on the Euronext Growth Brussels Exchange
("Euronext"), it became apparent that the cost of the listing outweighed the
benefits, as the vast majority of the trades in the Company's shares were
conducted through our primary listing on AIM, rather than Euronext. Taking
this into account and the best interests of shareholders, the Board made the
decision to de-list from Euronext with the effective date of 18 October 2021.
Board changes and corporate reorganisation
During 2021, a number of key Board changes happened. In June 2021, Dr Robert
Zimmer, co-founder of ImmuPharma and Chief Scientific Officer, retired to
pursue other endeavours after 16 years of service. As a substantial
shareholder in ImmuPharma and to demonstrate his continued support of the
Company, Dr Zimmer entered into a lock-in agreement, to not dispose of shares
in which he has an interest, for a period of three years or, if earlier than
three years, the date of the reporting by the Company of the preliminary
results of the next Phase 3 clinical trial of Lupuzor™.
On 16 July 2021, Dr Tim Franklin, Chief Operating Officer, was appointed to
the Board of Directors. Tim has worked for ImmuPharma for over three years,
initially as a consultant and more recently appointed as Chief Operating
Officer in November 2020. His key responsibilities include working closely
with ImmuPharma's product development team and scientific advisors, in
addition to exploring business development opportunities with potential
partners. These activities aim to progress the Company's drug development
portfolio, both through in house development and partnering opportunities.
On 30 July 2021, as part of a Board Changes announcement, it was confirmed
that Dimitri Dimitriou, co-founder and CEO of ImmuPharma, for over 16 years,
had decided to step down from his position, in order to pursue a number of
other external opportunities. Tim McCarthy, Chairman, has been appointed as
CEO. The Company has initiated a process to identify a suitable person to take
over as Non-Executive Chair of the Company and during this interim period Tim
McCarthy will continue as Chairman.
Further, on 30 July 2021, Dr Franco di Muzio, Senior NED and Dr Stéphane
Méry, NED stepped down from the Board, following 14 and 6 years in these
roles respectively.
On 30 July 2021, Dr Sanjeev Pandya was appointed as Senior Independent NED. In
addition, Lisa Baderoon was appointed to the Board as a NED.
The corporate reorganisation initiatives (including the Board changes) are
expected to result, from 2022, in overall cost savings across the Group of
approximately £1.1m per annum. This is a decrease of around 50% (compared to
2020), in the Company's committed overhead costs (excluding R&D project
costs). Included in this overall cost saving are reductions in the costs
relating to the Board and connected parties amounting to approximately £0.5m
per annum.
Interest in Incanthera Plc
ImmuPharma has a 13.37% interest in Oncology specialist, Incanthera plc, which
trades on Aquis Stock Exchange ("AQSE") under the ticker (TIDM:INC).
ImmuPharma also has 7,272,740 warrants options in Incanthera at an exercise
price of 9.5p pence, being the price at which new shares have been issued in
the Placing accompanying Incanthera's listing.
As a major shareholder, ImmuPharma remains supportive of Incanthera.
Convertible loan notes
On 15 December 2021, the Company repaid in full the remaining outstanding
balance of $950,000 (£837,859) principal and $160,278 (£121,120) of accrued
interest, the total of $1,110,278 (£958,979) due to L1 Capital Global
Opportunities Master Fund ("L1").
By 15 December 2021, both convertible security deeds with L1 and Lind Global
Macro Fund, LP ("Lind") have been repaid and/or converted.
L1 and Lind each have 12,820,127 Options in the Company, which may be
exercised at any time up to 10 June 2023 with an exercise price of 11p, which,
if all exercised, would amount to $3.60 million (£2.82 million).
Capital subscription
On 20 December 2021 ImmuPharma announced subscriptions and placing to raise in
total £3.55m (before expenses) through the issue of 32,272,727 new ordinary
shares of 10 pence each in ImmuPharma at a price of 11p per ordinary share
("Issue Price"). The Company has also entered into a sharing agreement
("Sharing Agreement") with Lanstead Capital Investors L.P. ("Lanstead"), see
below.
The subscriptions comprised of 10,909,091 new ordinary shares by Alora
Pharmaceuticals LLC ("Alora"), the parent company of Avion, to raise £1.2m
and a further £2.2m subscription for 20,000,000 new ordinary shares with
Lanstead Capital Investors LP ("Lanstead"), at an Issue Price of 11 pence per
share, together with a related Sharing Agreement. The Chelverton Asset
Management placing secured £150k for 1,363,636 new ordinary shares.
The £2.2 million gross proceeds of the Lanstead subscription was followed by
the Sharing Agreement with Lanstead for 100% of these shares with a reference
price of 14.6667p per share ("Benchmark Price"). The Sharing Agreement is for
a 24 month period and the Company will receive 24 equal monthly settlements,
as measured against Benchmark Price. The actual consideration is variable
depending upon ImmuPharma's share price and provides the opportunity for
ImmuPharma to benefit from a positive future share price performance.
The Company also agreed to issue Lanstead 1,400,000 ordinary shares in
connection with entering into the Sharing Agreement ("Value Payment Shares").
The Company also issued 90,909 and 1,000,000 new Ordinary Shares ("Fee
Shares") at an issue price of 11 pence per share to SPARK and Stanford Capital
Partners respectively, in lieu of fees.
The Issue Price of 11 pence represented a 80 percent premium to the closing
mid-market price (of 6.1p) of the Ordinary Shares on 17 December 2021, the
latest business date prior to the Subscriptions and Placing.
Warrants
On 23 December 2021, for each ordinary share subscribed for, as detailed
above, two warrants were issued by ImmuPharma. The warrants are exercisable
for 10 years at an exercise price of 11 pence. In total 64,545,454 warrants
were issued under the Subscriptions and Placing.
Current Activities and Outlook
2021 brought significant changes in the leadership of the ImmuPharma. We have
created positive and constructive changes within the business, with a focus on
delivery of product development, value added milestones and a much more
commercially driven corporate strategy.
With now fully reviewed and assessed R&D development programs, we remain
focused on bringing our two late-stage clinical assets, Lupuzor™ and CIDP
closer to the market, whilst ensuring earlier stage assets, specifically
within anti-infectives progress, with a key focus on partnering opportunities.
We were delighted to secure the successful fundraising in late 2021, as it
demonstrated that our corporate repositioning efforts, since the Board
changes, were recognised by our existing shareholders and partner, Avion
(Alora Pharmaceuticals).
In closing, we look forward to sharing value enhancing newsflow over the next
period and we would like to thank our shareholders for their support as well
as our staff, corporate and scientific advisers and our partners including,
CNRS and Avion.
Tim McCarthy
Chairman & CEO
Financial Review
The financial results of the ImmuPharma Group in this report cover the year
ended 31 December 2021. The Group's principal activity is that of research and
development of novel drugs to treat serious medical conditions.
Income Statement and Statement of Comprehensive Income
The operating loss for the year ended 31 December 2021 was £6.6 million, up
from £5.6 million for the year ended 31 December 2020. The research and
development expenditure was £3.7 million, up from £2.4 million in 2020. P140
related expenditure was the main reason for this increase. Administrative
expenses were £1.0 million (2020: £1.8 million). The operating loss for the
year includes exceptional costs of £1.4m (2020: £Nil) in respect of
corporate reorganisation, including the departures of Board members (including
Dr Robert Zimmer and Dimitri Dimitriou) and respective settlement agreements.
Finance income has decreased from £41k in 2020 to £1k in 2021. Finance costs
amounted to £2.4 million, up from £1.7 million in 2020, caused largely by
the loss on the Lanstead derivative financial asset. The loss after tax for
the year was £8.2 million, an increase from £6.9 million in 2020.
The amounts recognised directly in the Statement of Comprehensive Income
include the total fair value loss of £1.0 million (2020: fair value gain of
£1.5 million) which comprises the following components: fair value loss on
shares held in Incanthera plc of £584k (2020: fair value gain of £852k) and
fair value loss on Incanthera's warrants of £418k (2020: fair value gain of
£626k). Total comprehensive loss for the year was £9.2 million, an increase
from £5.3 million in 2020.
Statement of Financial Position
The Group cash and cash equivalents at 31 December 2021 amounted to £1.6
million (2020: £5.9 million) with the decrease caused by the research and
development expenditure related to PK study, exceptional costs and repayment
of convertible loan notes. The convertible loan notes liability has been
repaid in full in 2021 totalling £838k (2020: £635k). Trade and other
payables increased to £1.6 million (2020: £0.6 million) and was largely due
to PK study related expenditure. The total value of the financial asset
equated to £1.4 million, comprising of shares in Incanthera of £1.2 million
(2020: £1.8 million) and warrants in Incanthera of £0.2 million (2020: £0.6
million). At 31 December 2021 the Lanstead derivative financial asset amounted
to £0.9 million (2020: £1.2 million). The decrease was a result of the fair
value calculation performed at year end, reflecting the decrease in
ImmuPharma's share price.
Results
The Group recorded a loss for the year of £8.2 million (2020: £6.9 million).
Basic and diluted loss per share was 3.25p (2020: 3.43p). In accordance with
the Group's loss making position, no dividend is proposed.
Total Voting Rights
The Company had a total of 284,984,933 ordinary shares in issue at 31 December
2021 with each share carrying the right of one vote.
Treasury Policy
The policy continues to be that surplus funds of the Group are held in
interest-bearing bank accounts on short or medium maturities, until
commitments to future expenditure are made, when adequate funds are released
to enable future expenditure to be incurred. The Group's Treasury Policy and
controls are straightforward and approved by the Board.
Financial Strategy
The overall strategy is to maintain a tight control over cash resources whilst
enabling continued progress of the Company's development assets.
On behalf of the Board
Tim McCarthy
Director
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
Year ended Year ended
Notes 31 December 2021 31 December 2020
£ £
Continuing operations
Revenue 118,350 126,667
Research and development expenses (3,650,400) (2,372,834)
Exceptional items (1,427,084) -
Administrative expenses (1,011,398) (1,764,897)
Share based payment expense (616,423) (1,578,368)
Operating loss (6,586,955) (5,589,432)
Finance costs (2,354,872) (1,697,832)
Finance income 1,107 41,089
Loss before taxation (8,940,720) (7,246,175)
Tax 766,815 386,248
Loss for the year (8,173,905) (6,859,927)
Attributable to:
Equity holders of the parent company (8,173,905) (6,859,927)
Loss per ordinary share
Basic and diluted 2 (3.25)p (3.43)p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
Year Year
ended 31 December ended 31 December
2021 2020
£ £
Loss for the financial period (8,173,905) (6,859,927)
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss:
Fair value (loss)/gain on investment (584,355) 851,772
Fair value (loss)/gain on warrants (418,068) 625,576
Total items that will not be reclassified subsequently to profit or loss (1,002,423) 1,477,348
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations (36,177) 42,207
Total items that may be reclassified subsequently to profit or loss (36,177) 42,207
Other comprehensive (loss)/income for the period (1,038,600) 1,519,555
Total comprehensive loss for the period (9,212,505) (5,340,372)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
31 December 2021 31 December 2020
£ £
Non-current assets
Intangible assets 477,553 484,042
Property, plant and equipment 352,996 411,606
Derivative financial asset 405,489 174,488
Financial assets 1,415,835 2,418,258
Total non-current assets 2,651,873 3,488,394
Current assets
Trade and other receivables 427,199 161,998
Derivative financial asset 508,167 1,016,635
Cash and cash equivalents 1,649,374 5,862,057
Current tax asset 761,188 386,590
Total current assets 3,345,928 7,427,280
Current liabilities
Financial liabilities - borrowings (700) (6,939)
Trade and other payables (1,583,604) (619,037)
Convertible loan notes - (634,902)
Total current liabilities (1,584,304) (1,260,878)
Net current assets 1,761,624 6,166,402
Net assets 4,413,497 9,654,796
EQUITY
Ordinary shares 28,498,494 25,022,130
Share premium 27,237,329 27,237,329
Merger reserve 106,148 106,148
Other reserves 5,153,159 3,255,536
Retained earnings (56,581,633) (45,966,347)
Total equity 4,413,497 9,654,796
The financial statements were approved by the Board of Directors and
authorised for issue on 24 May 2022
They were signed on its behalf by:
Tim
McCarthy
Tim Franklin
Director
Director
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
Other reserves - Share based payment reserve Other reserves - Convertible option reserve
Other reserves - Acquisition reserve Other reserves - Translation reserve Other reserves - Warrant reserve
Share capital Share premium Merger reserve Retained earnings
Total equity
£ £ £ £ £ £ £ £ £ £
At 1 January 2020 16,736,093 27,187,316 106,148 (3,541,203) (1,350,687) 6,322,227 - - (40,190,680) 5,269,214
Loss for the financial year - - - - - - - - (6,859,927) (6,859,927)
Exchange differences on translation
of foreign operations - - - - 42,207 - - - - 42,207
Transactions with owners:
Share based payments - - - - - 1,751,369 - - - 1,751,369
Equity component of convertible loan notes - - - - - - 31,623 - - 31,623
New issue of equity capital 8,286,037 665,281 - - - - - - - 8,951,318
Costs of new issue of equity capital - (615,268) - - - - - - (393,088) (1,008,356)
Fair value gain on investments - - - - - - - - 851,772 851,772
Fair value gain on share warrants - - - - - - - - 625,576 625,576
At 31 December 2020 25,022,130 27,237,329 106,148 (3,541,203) (1,308,480) 8,073,596 31,623 - (45,966,347) 9,654,796
Loss for the financial year - - - - - - - - (8,173,905) (8,173,905)
Exchange differences on translation
of foreign operations - - - - (36,177) - - - - (36,177)
Transactions with owners:
Share based payments - - - - - 616,423 - - - 616,423
New issue of equity capital 3,476,364 322,727 - - - - - - (1,349,000) 2,450,091
Costs of new issue of equity capital - (322,727) - - - - - - (121,581) (444,308)
Fair value loss on investments - - - - - - - - (584,355) (584,355)
Fair value loss on share warrants - - - - - - - - (418,068) (418,068)
Settlement of convertible loans reserve - - - - - - (31,623) - 31,623 -
Issue of warrants - - - - - - - 1,349,000 - 1,349,000
At 31 December 2021 28,498,494 27,237,329 106,148 (3,541,203) (1,344,657) 8,690,019 - 1,349,000 (56,581,633) 4,413,497
Attributable to:-
Equity holders of the parent company 28,498,494 27,237,329 106,148 (3,541,203) (1,344,657) 8,690,019 - 1,349,000 (56,581,633) 4,413,497
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
Notes Year ended Year ended
31 December 2021 31 December
2020
£ £
Cash flows from operating activities
Cash used in operations 3 (5,222,446) (3,879,936)
Tax received 392,217 606,157
Interest paid (2,943) (55,622)
Net cash used in operating activities (4,833,172) (3,329,401)
Investing activities
Purchase of property, plant and equipment (50,934) (360,290)
Interest received 651 41,089
Purchase of investments - (250,000)
Net cash used in investing activities (50,283) (569,201)
Financing activities
Decrease in bank overdraft (211) (184)
Loan repayments (6,028) (21,256)
Settlements from Sharing Agreement 328,495 1,292,393
Gross proceeds from issue of new share capital 3,550,000 8,000,000
Share capital issue costs (132,350) (702,133)
Funds deferred per Sharing Agreement (2,200,000) (1,300,000)
Gross proceeds from issue of convertible loan notes - 2,152,252
Interest paid on convertible loan notes (121,120)
Convertible loan notes issue costs - (235,552)
Convertible loan notes repaid (716,739) (815,166)
Net cash generated from financing activities 702,047 8,370,354
Net increase/(decrease) in cash and cash equivalents (4,181,408) 4,471,752
Cash and cash equivalents at beginning of year 5,862,057 1,364,840
Effects of exchange rates on cash and cash equivalents (31,275) 25,465
Cash and cash equivalents at end of year (excluding overdraft) 1,649,374 5,862,057
1 BASIS OF PREPARATION
The financial information set out in this announcement does not comprise the
Group's statutory accounts as defined in section 434 of the Companies Act 2006
for the year ended 31 December 2021 or 31 December 2020.
The financial information has been extracted from the statutory accounts for
the years ended 31 December 2021 and 31 December 2020. The auditors reported
on those accounts; their reports were unqualified and did not contain a
statement under either Section 498(2) or Section 498(3) of the Companies Act
2006 in respect of the years ended 31 December 2021 and 31 December 2020. For
the year ended 31 December 2021 it did include an emphasis of matter paragraph
relating to the carrying value of Parent Company's investment in subsidiaries
and receivables due from group undertakings, and a reference to which the
auditor drew attention by way of emphasis without qualifying their report in
respect of going concern.
For the year ended 31 December 2020, it did include an emphasis of matter
paragraphs relating to the carrying value of Parent Company's investment in
subsidiaries and receivables due from group undertakings. The Group's
statutory accounts for the year ended 31 December 2020 have been delivered to
the Registrar of Companies, whereas those for the year ended 31 December 2021
will be delivered to the Registrar of Companies following the Company's Annual
General Meeting.
The accounting policies are consistent with those applied in the preparation
of the statutory accounts for the year ended 31 December 2020 and interim
results for the period ended 30 June 2020, which have been prepared in
accordance with International Financial Reporting Standards ('IFRS').
The financial information is for the year ended 31 December 2021 and the
comparatives are for the year ended 31 December 2020 and 31 December 2019.
The Group's statutory accounts incorporate the financial statements of
ImmuPharma plc and other entities controlled by the company ("the
subsidiaries"). The control principle in IFRS 10 sets out the following three
elements of control: power over the investee; exposure, or rights, to variable
returns from involvement with the investee; and. the ability to use power over
the investee to affect the amount of those returns. The financial statements
of these other entities cease to be included in the Group financial statements
from the date that control ceases.
2 LOSS PER SHARE Year ended 31 December 2021 Year ended 31 December
- Group 2020
£ £
Loss
Loss for the purposes of basic loss per share being net loss after tax
attributable to equity shareholders
(8,173,905) (6,859,927)
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings
per share
251,164,361 200,176,156
Basic loss per share (3.25)p (3.43)p
Diluted loss per share (3.25)p (3.43)p
There is no difference between basic loss per share and diluted loss per share
as the share options and warrants are anti-dilutive.
3 CASH USED IN OPERATIONS
Group Group
31 December 2021 31 December 2020
£ £
Operating loss (6,586,955) (5,589,432)
Depreciation and amortisation 114,119 170,954
Share-based payments 616,423 1,578,368
(Increase) in trade and other receivables (265,201) (8,380)
Increase in trade and other payables 896,798 113,926
(Gain)/loss on foreign exchange 2,370 (145,372)
Cash used in operations (5,222,446) (3,879,936)
4. ANNUAL REPORT
The annual report for the year ended 31 December 2021 will be posted to
shareholders shortly, and will be made available on the Company's website
www.immupharma.co.uk (http://www.immupharma.co.uk) .
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