Lorus Therapeutics raises C$12 million in first quarter to advance pipeline

By Lisa Kerner

Charlotte, N.C., Oct. 10 - Lorus Therapeutics Inc. said it ended the first quarter of fiscal 2007 with two financing transactions that generated more than C$12 million.

In August, the company raised gross proceeds of C$10.7 million through a subscription agreement for 28.8 million units at C$0.36 per common share and gross proceeds of C$1.8 million through a private placement of 5 million units at C$0.36 per common share.

Lorus plans to use the proceeds to advance its pipeline.

The company also had cash, cash equivalents and short-term investments totaling C$18.2 million at Aug. 31, compared with C$8.3 million at May 31.

Lorus decreased the amount of cash used in operating activities for the three-month period by 62% to C$1.8 million from C$4.8 million for the same period of last year. The company attributed the decrease to lower research and development expenditures, staff reductions and the completion of the Virulizin phase 3 clinical trial in fiscal 2006.

Research and development expenses for the period were down 66.4% at C$1.3 million, compared with C$4.0 million for the prior-year period.

The company saw its general and administrative expenses drop by 26.8% to C$788,000 for the quarter from C$1.1 million for the same period last year.

Lorus reported a net loss for the three-month period ended Aug. 31 of C$2.8 million, compared with a loss of C$5.7 million for the same three-month period in 2005.

"I am pleased to be leading the Lorus team as we further develop GTI-2040 in the clinic, advance our lead small molecule LT-253 toward the clinic and work towards enhancing shareholder value," new company president and chief executive officer Aipinig H. Young said in a news release.

Toronto-based Lorus is a biopharmaceutical company that develops and commercializes pharmaceutical products for the management of cancer.

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