-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KXlVITSXCsnZq3w19vPX3kd+Vbpb32wWKtzyKNZ8fm50frIWz7a3qt6+iu5oB7py uAD6tm8YGclMpjo0Piz2QA== 0001047469-99-030364.txt : 20010524 0001047469-99-030364.hdr.sgml : 20010524 ACCESSION NUMBER: 0001047469-99-030364 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990809 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VISIBLE GENETICS INC CENTRAL INDEX KEY: 0001010819 STANDARD INDUSTRIAL CLASSIFICATION: 3826 IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 000-28550 FILM NUMBER: 99681151 BUSINESS ADDRESS: STREET 1: 700 BAY ST STREET 2: SUITE 1000 CITY: TORONTO ONTARIO CANA STATE: A6 BUSINESS PHONE: 2127025700 MAIL ADDRESS: STREET 1: 700 BAY ST STE 1000 STREET 2: TORONTO ONTARIO CANADA CITY: M5G 1Z6 6-K 1 FORM 6-K - - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 FILING NO. 1 FOR THE MONTH OF AUGUST, 1999 VISIBLE GENETICS INC. -------------------------- (Exact name of Registrant) 700 BAY STREET, SUITE 1000, TORONTO ON, CANADA M5G 1Z6 ------------------------------------------------------ (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F Form 20-F X Form 40-F __ Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes __ No X - - -------------------------------------------------------------------------------- VISIBLE GENETICS INC. On August 6, 1999, the Company announced its results for the second quarter ended June 30, 1999. All figures are in United States dollars. Sales in the second quarter of 1999 were $1.9 million compared to $2.5 million in the second quarter of 1998. The net loss for the second quarter of 1999 was $7.1 million, or $0.75 per share, compared to a net loss of $4.2 million, or $0.56 per share, in the second quarter of 1998. For the six months ended June 30, 1999, sales were $5.2 million with a loss per share of $1.21 compared to sales of $3.6 million and a loss per share of $0.97 for the corresponding period in 1998. The increase in the net loss for the quarter was due to increased general and administrative expenses related to developing the Company's infrastructure, for international sales and marketing activities, and a provision, totaling $0.3 million, for bad debt and warranty expenses. In addition, the cost of goods sold for the period includes a write-off of obsolete and discontinued instruments and related parts in the amount of $0.62 million. Subsequent to the end of the quarter, in July, the Company completed a $30 million convertible preferred share issue with Warburg, Pincus & Co., LLC, one of the world's leading private equity investment firms. At the same time part of the Company's outstanding debt was converted to preferred shares and the balance of the debt was repaid from the proceeds of the issue. After the transactions, the Company had $27 million in cash. Visible Genetics Inc. manufactures and markets high performance automated DNA sequencing systems and complete kits for the analysis of genes linked to disease. The Company's OpenGene(TM) system employs proprietary stratified DNA testing and single-tube, single-step sequencing methods to significantly reduce the time and cost involved in identifying clinically relevant genetic information. The Company is a leader in the emerging field of pharmacogenomics, which will use genetic information in the identification, and analysis of genes in order to improve patient care and reduce healthcare costs. This Form 6-K contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors that may cause the Company's results to differ materially from expectations. These include risks relating to the ability to obtain regulatory approval, market acceptance of genotyping and the Company's products and other risks detailed from time to time in the Company's SEC filings, including its most recent Annual Report on Form 20-F. These forward-looking statements speak only as of the date hereof. VGI disclaims any intent or obligation to update these forward-looking statements. The Company hereby incorporates by reference this Form 6-K into the Company's Registration Statements on Form F-3 (File Nos. 333-67607 and 333-68939) and Form S-8 (File Nos. 333-6454 and 333-8804). Exhibit 1. Second Quarter Financial Results SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. VISIBLE GENETICS INC. Date: August 6, 1999 By: /s/ Richard T. Daly ------------------- Name: Richard T. Daly Title: President and CEO VISIBLE GENETICS INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED, UNITED STATES DOLLARS)
JUNE 30 DECEMBER 31 1999 1998 ------------ ------------ ASSETS CURRENT ASSETS Cash and cash equivalents $ 902,348 $ 6,165,924 Short-term investments -- 5,108,254 Trade receivables 4,322,602 4,770,796 Other receivables 1,258,517 1,445,820 Prepaid and deposits 670,750 233,072 Inventory 4,435,928 3,912,336 ------------ ------------ TOTAL CURRENT ASSETS 11,590,145 21,636,202 Deferred financing costs 648,773 -- Other long-term assets 694,617 -- Fixed assets 4,337,589 3,877,163 Patents and licences 2,574,231 2,269,170 ------------ ------------ $ 19,845,355 $ 27,782,535 ============ ============ LIABILITIES CURRENT LIABILITIES Notes payable $ 8,000,000 $ 7,494,877 Accounts payable 5,039,856 3,985,103 Accrued liabilities 1,722,358 1,723,840 ------------ ------------ TOTAL CURRENT LIABILITIES 14,762,214 13,203,820 ------------ ------------ SHAREHOLDERS' EQUITY Share capital 48,080,318 46,412,685 Other equity 2,940,252 2,232,465 Cumulative translation adjustment (342,276) 84,822 Deficit (45,595,153) (34,151,257) ------------ ------------ 5,083,141 14,578,715 ------------ ------------ $ 19,845,355 $ 27,782,535 ============ ============
VISIBLE GENETICS INC. CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED, UNITED STATES DOLLARS)
THREE MONTHS ENDED JUNE 30 SIX MONTHS ENDED JUNE 30 ------------------------------ ------------------------------ 1999 1998 1999 1998 ----------- ------------ ------------ ----------- SALES $ 1,925,375 $ 2,507,045 $ 5,185,988 $ 3,566,763 Cost of sales ( Note 1 ) 1,913,349 1,664,694 4,063,821 2,474,465 ----------- ------------ ------------ ----------- GROSS MARGIN 12,026 842,351 1,122,167 1,092,298 EXPENSES Sales, general and administrative 4,567,531 2,739,980 7,731,259 4,929,813 Research and development 2,020,471 2,221,709 3,874,292 3,367,988 ----------- ------------ ------------ ----------- 6,588,002 4,961,689 11,605,551 8,297,801 ----------- ------------ ------------ ----------- Loss from operations before interest (6,575,976) (4,119,338) (10,483,384) (7,205,503) Interest income 27,574 73,149 141,224 156,762 Interest and financing expense (561,450) (115,629) (1,101,736) (117,171) ----------- ------------ ------------ ----------- NET LOSS FOR THE PERIOD $(7,109,852) $ (4,161,818) $(11,443,896) $(7,165,912) Weighted average number of common shares outstanding 9,536,356 7,398,122 9,464,636 7,366,337 ----------- ------------ ------------ ----------- BASIC AND FULLY DILUTED LOSS PER SHARE $ (0.75) $ (0.56) $ (1.21) $ (0.97) =========== ============ ============ ===========
NOTE 1 Included in cost of sales for the three months ended June 30, 1999 is a specific provision for obsolete and discontinued instruments and related parts in the amount of $617,546. VISIBLE GENETICS INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED, UNITED STATES DOLLARS)
SIX MONTHS ENDED JUNE 30 1999 1998 ------------ ----------- CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Net Loss for the period $(11,443,896) $(7,165,912) Add: Items not involving cash - Depreciation 773,389 477,079 Amortization 192,447 87,968 Deferred compensation cost related to options granted -- 38,582 In-process research and development acquired -- 490,875 Non cash financing expense related to warrants granted 636,602 -- Foreign exchange 52,051 -- Increase ( decrease ) from changes in - Trade receivables 71,221 (1,502,560) Other receivables 187,303 (315,956) Prepaid and deposits (437,678) (532,668) Inventory (523,592) (1,233,481) Other long-term assets (694,617) -- Accounts payable 898,040 1,203,990 Accured liabilities (1,482) 236,434 ------------ ----------- (10,290,212) (8,215,649) ============ =========== Financing activities Common shares issued, net of expenses 1,481,554 261,581 Other equity issuances 11,438 (35,323) Short term borrowings -- 7,382,441 Capital lease obligation -- (8,366) ------------ ----------- 1,492,992 7,600,333 ============ =========== Investing activities Marketable securities 5,108,254 4,241,216 Fixed assets (1,233,815) (1,674,073) Intangible assets (340,795) (219,802) ------------ ----------- 3,533,644 2,347,341 ============ =========== Increase (decrease) in cash during the period (5,263,576) 1,732,025 CASH, BEGINNING OF PERIOD 6,165,924 1,866,679 ------------ ----------- CASH, END OF PERIOD $ 902,348 $ 3,598,704 ============ ===========
VISIBLE GENETICS INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED, UNITED STATES DOLLARS) SIX MONTHS ENDED JUNE 30 1999 1998 ------------ ----------- Net loss for the period $(11,443,896) $(7,165,912) Other comprehensive income: Foreign currency translation adjustments (427,098) -- ------------ ----------- Comprehensive loss for the period $(11,870,994) $(7,165,912) ------------ ----------- VISIBLE GENETICS INC. CONSOLIDATED STATEMENTS OF DEFICIT (UNAUDITED, UNITED STATES DOLLARS) SIX MONTHS ENDED JUNE 30 1999 1998 ------------ ------------ Deficit, beginning of year $(34,151,257) $(19,260,296) Net loss for the period (11,443,896) (7,165,912) ------------ ------------ Deficit, end of the period $(45,595,153) $(26,426,208) ------------ ------------ -----END PRIVACY-ENHANCED MESSAGE-----