Adamis Pharmaceuticals Reports First Quarter 2023 Financial Results and Provides Corporate Update
15 Maio 2023 - 5:47PM
Adamis Pharmaceuticals Corporation (NASDAQ: ADMP), a
commercial-stage biopharmaceutical company focused on developing
and commercializing products in various therapeutic areas,
including opioid overdose, allergy, respiratory and inflammatory
disease, today announced financial results for the first quarter
ended March 31, 2023, and provided an update on recent corporate
developments.
Q1 2023 Corporate Highlights
Nasdaq Continued Listing
- On February 23, 2023, Adamis announced that Nasdaq had granted
its request to extend the period for the Company to regain
compliance with the $1 minimum bid share price requirement, subject
to the Company evidencing compliance with all applicable criteria
for continued listing, by no later than a final extension date of
June 26, 2023.
- The Company’s continued listing is subject to the timely
satisfaction of certain interim milestones and undertaking of
certain corporate actions during the compliance period, including
without limitation: (1) the Company executing the merger agreement
with DMK Pharmaceuticals Corporation; (2) effecting a reverse stock
split of its common stock; and (3) achieving the minimum closing
bid price of at least $1.00 per share for a minimum of ten
consecutive business days prior to the expiration of the compliance
period.
- On April 12, 2023, Adamis received
another notice from Nasdaq indicating that for the last 30
consecutive business days, the Company’s minimum Market Value of
Listed Securities (MVLS) was below the minimum of $35 million
required for continued listing on the Nasdaq Capital Market.
Pursuant to Nasdaq listing rules, the Company will have until
October 9, 2023, to regain compliance with the MVLS standard, which
requires that the MVLS be at least $35 million for a minimum of 10
consecutive business days at any time before expiration of the
compliance period. The notice had no current effect on the listing
of the Company’s common stock.
- The Company believes that by both effecting a reverse stock
split and closing the merger transaction with DMK Pharmaceuticals,
it can regain compliance with both Nasdaq requirements prior to the
June 26th deadline.
Merger Agreement with DMK Pharmaceuticals
- On February 24, 2023, the Company entered into an Agreement and
Plan of Merger and Reorganization with DMK Pharmaceuticals
Corporation (the “Agreement”).
- DMK is a private, clinical-stage biotechnology company at the
forefront of endorphin-inspired drug design focused on developing
novel treatments for opioid use disorder and other neuro-based
diseases.
- At a special meeting of stockholders of the Company held on May
15, 2023, the stockholders of the Company approved proposals
relating to the proposed DMK merger transaction and the proposed
reverse stock split. The Company expects to close the merger
transaction as soon as all remaining closing conditions have been
either met or waived by the parties.
Financing
- On March 14, 2023, the Company announced that it had entered
into a securities purchase agreement with a single,
healthcare-focused institutional investor for the purchase and sale
of 16,500,000 shares of its common stock and pre-funded warrants to
purchase up to 7,500,000 shares of common stock, together with
warrants to purchase up to 48,000,000 shares of common stock. The
Company received gross proceeds of approximately $3.0 million,
before deducting fees and other estimated offering expenses.
- On May 2, 2023, the investor exercised the pre-funded warrants
in full.
Q1 2023 Financial Highlights
- Total net revenue for the first quarter of 2023 was
approximately $1.5 million compared to approximately $1.2 million
in the first quarter of 2022, an increase of approximately 26%. The
increase in revenues was primarily due to increased sales of ZIMHI.
No revenues relating to SYMJEPI were reported in the first quarter
of 2023 or 2022, due to its manufacturing hold and voluntary recall
that was announced in March 2022.
- Operating expenses (selling, general and administrative
expenses and research and development expenses) for the first
quarter of 2023 were approximately $6.1 million compared to $7.6
million in the first quarter of 2022, a decrease of approximately
20%. The decrease was primarily due to lower development spending,
offset by increases in legal, audit and advisory fees associated
with both the proposed merger transaction with DMK and the March
financing transaction.
- Net loss for the combined (continued and discontinued)
operations for the first quarter of 2023 was approximately $8.9
million compared to a net loss of $10.4 million in the first
quarter of 2022, a decrease of approximately 14%.
- Cash and cash equivalents as of March 31, 2023, were
approximately $3.1 million.
Conference Call Information
Management will host a live webcast/conference call today, May
15, 2023, at 2:00 p.m. PT / 5:00 p.m. ET, during which Company
executives will review financial information for the first quarter
of 2023 and provide a corporate update, which may include an update
concerning the results of the Company’s special meeting of
stockholders held on May 15, 2023, as well as concerning the
proposals acted upon at the meeting.
U.S. Dial-in (Toll Free):
1-877-423-9813Toll/International Dial-in: 1-201-689-8573
A live audio webcast of the conference call will also be
available via this link. If you are unable to participate in the
live call, a replay will be available shortly after the live event.
To listen to the replay please visit the events page of the Adamis
investor relations section of the company website at
http://ir.adamispharmaceuticals.com/events-presentations.
About Adamis Pharmaceuticals
Adamis Pharmaceuticals Corporation is a specialty
biopharmaceutical company primarily focused on developing and
commercializing products in various therapeutic areas, including
opioid overdose, allergy, respiratory and inflammatory disease. The
Company’s products approved by the FDA include
ZIMHI® (naloxone) Injection for the treatment of opioid
overdose and SYMJEPI® (epinephrine) Injection for use in the
emergency treatment of acute allergic reactions, including
anaphylaxis. For additional information about Adamis
Pharmaceuticals, please visit our website and follow us
on Twitter and LinkedIn.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are identified by terminology such
as “may,” “should,” “expects,” “plans,” “anticipates,” “could,”
“intends,” “target,” “projects,” “contemplates,” “believes,”
“estimates,” “predicts,” “potential” or “continue” or the negative
of these terms or other similar words. Such forward-looking
statements include those that express plans, anticipation, intent,
contingencies, goals, targets or future development and/or
otherwise are not statements of historical fact. These statements
relate to future events or future results of operations, including,
but not limited to statements concerning the following matters: (i)
the proposed merger transaction with DMK and the timing of the
anticipated closing of the proposed merger; (ii) risks that one or
more conditions to closing of the merger may not be satisfied
within the expected timeframe or at all or that the closing of the
proposed merger will not occur; (iii) the outcome of any current
legal proceedings or future legal proceedings, including
proceedings related to the Agreement or the proposed merger; (iv)
whether the combined business of DMK and Adamis will be successful;
(v) whether any DMK product candidates will be successfully
developed or commercialized; (vi) the Company’s ability to regain
compliance with Nasdaq listing standards so that the Company’s
Common Stock continues to be listed on the Nasdaq Capital Market;
(vii) the Company’s ability to raise capital to continue as a going
concern; and (viii) those risks detailed in Adamis’ most recent
Annual Report on Form 10-K and subsequent reports filed with the
Securities and Exchange Commission (“SEC”), as well as other
documents that may be filed by Adamis from time to time with the
SEC. These statements are only predictions and involve known and
unknown risks, uncertainties, and other factors, which may cause
Adamis’ actual results to be materially different from the results
anticipated by such forward-looking statements. Accordingly, you
should not rely upon forward-looking statements as predictions of
future events. Adamis cannot assure you that the events and
circumstances reflected in the forward-looking statements will be
achieved or occur, and actual results could differ materially from
those projected in the forward-looking statements. Factors that
could cause actual results to differ materially from management’s
current expectations include those risks and uncertainties relating
to: our ability to raise capital; our ability to complete the
proposed merger transaction with DMK; our ability to maintain
continued listing of the Common Stock on the Nasdaq Capital Market;
risks associated with development of DMK’s drug product candidates;
our cash flow, cash burn, expenses, obligations and liabilities;
the outcomes of any litigation, regulatory proceedings, inquiries
or investigations that we are or may become subject to; and other
important factors discussed in the Company’s filings with the
Securities and Exchange Commission (“SEC”). If we do not obtain
required additional equity or debt funding in the near term, our
cash resources will be depleted and we could be required to
materially reduce or suspend operations, which would likely have a
material adverse effect on our business, stock price and our
relationships with third parties with whom we have business
relationships, at least until additional funding is obtained. If we
do not have sufficient funds to continue operations or satisfy out
liabilities, we could be required to seek bankruptcy protection or
other alternatives to attempt to resolve our obligations and
liabilities that could result in our stockholders losing most or
all of their investment in us. You should not place undue reliance
on any forward-looking statements. Further, any forward-looking
statement speaks only as of the date on which it is made, and
except as may be required by applicable law, we undertake no
obligation to update or release publicly the results of any
revisions to these forward-looking statements or to reflect events
or circumstances arising after the date of this press release.
Certain of these risks and additional risks, uncertainties, and
other factors are described in greater detail in Adamis’ filings
from time to time with the SEC, including its annual report on Form
10-K for the year ended December 31, 2022, and subsequent filings
with the SEC, which Adamis strongly urges you to read and consider,
all of which are available free of charge on the SEC’s website at
http://www.sec.gov.
Contact:Adamis Investor RelationsRobert UhlManaging DirectorICR
Westwicke619.228.5886
ADAMIS
PHARMACEUTICALS CORPORATION AND SUBSIDIARIES |
CONSOLIDATED
BALANCE SHEET DATA (Unaudited) |
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
December 31, 2022 |
Cash and Cash Equivalents |
|
$ |
3,099,843 |
|
|
$ |
1,081,364 |
|
Total
Current Assets |
|
|
7,547,030 |
|
|
|
9,272,150 |
|
Total
Assets |
|
|
9,076,095 |
|
|
|
10,930,840 |
|
Total
Liabilities |
|
|
18,600,473 |
|
|
|
11,581,605 |
|
Accumulated
Deficit |
|
|
(313,506,993 |
) |
|
|
(304,564,086 |
) |
Total
Mezzanine and Stockholders’ Equity |
|
|
9,076,095 |
|
|
|
10,930,840 |
|
ADAMIS
PHARMACEUTICALS CORPORATION AND SUBSIDIARIES |
CONSOLIDATED
STATEMENTS OF OPERATIONS DATA (Unaudited) |
|
|
|
|
|
|
|
Three Months
Ended March 31, |
2023 |
|
|
2022 |
|
Revenue, net |
$ |
1,453,000 |
|
|
$ |
1,154,514 |
|
Cost of
Goods Sold |
|
1,788,066 |
|
|
|
1,463,582 |
|
Selling,
General and Administrative Expenses |
|
4,782,086 |
|
|
|
3,382,696 |
|
Research and
Development |
|
1,310,529 |
|
|
|
4,221,525 |
|
Loss from
Operations |
|
(6,427,681 |
) |
|
|
(7,913,289 |
) |
Total Other
Income (Expense), net |
|
(2,586,927 |
) |
|
|
(2,276,465 |
) |
Net Loss
Applicable to Common Stock |
$ |
(9,014,608 |
) |
|
$ |
(10,189,754 |
) |
Basic &
Diluted Loss Per Share |
$ |
(0.06 |
) |
|
$ |
(0.07 |
) |
Basic &
Diluted Weighted Average Shares Outstanding |
|
152,916,598 |
|
|
|
149,617,429 |
|
|
|
|
|
|
|
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