EQS-Adhoc: Cytos Biotechnology Ltd Reports the Financial Results of 2014

EQS Group-Ad-hoc: Cytos Biotechnology AG / Key word(s): Final Results Cytos Biotechnology Ltd Reports the Financial Results of 2014

2015-04-28 / 07:00 Release of an ad hoc announcement pursuant to Art. 53 KR. The issuer is solely responsible for the content of this announcement.

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Cytos Biotechnology Ltd Reports the Financial Results of 2014

Schlieren (Zurich), Switzerland, April 28, 2015 - Cytos Biotechnology Ltd. (SIX:CYTN) ("Cytos" or the "Company") today presented its full year 2014 financial results and updated on progresses made to date.

The Company has achieved a number of key steps to date towards elimination of its debt burden. First, the bondholders meeting held in January 2015 approved the conversion of their bonds into shares with an 84% majority of all bond holders voting in favor of the conversion. The second step required was an approval by the Higher Court of the Canton of Zurich which was obtained in March 2015. The appeal period with the Federal Supreme Court will end by the end of April 2015 and - unless an appeal is filed - the application becomes final and binding soon thereafter. In March 2015, the shareholders have also approved the capital needed to create the shares used for the exchange of the bonds. As a consequence, the Company expects that the bonds can be exchanged into shares in the first half of May 2015 (subject to no appeal being filed). With this conversion, about half of the overall debt as per year-end 2013 will be eliminated.

As with regards to the second half of the debt: the non-subordinated part of CHF 14.2 million has been repaid at maturity, i.e. on February 10, 2015. Further, CHF 2 million of the claims of the loan note holders has been eliminated by converting the same amount into 1'600 convertible bonds. As a result, a residual subordinated claim of CHF 6 million remains due to date. Cytos is currently in discussions with the loan note holders regarding the settlement of theses residual claims. Such agreement is expected to ensure the continued going concern of Cytos allowing Cytos to potentially acquire a privately held company with intact projects and/or commercial products using stock. Such a combined company would have an intact asset base and potential for value creation for shareholders.

Full year consolidated financial figures 2014:

Balance sheet Funds available for financing the Company's operations amounted to CHF 17.06 million as per December 31, 2014, and include cash and cash equivalents, financial assets and trade and other receivables. This is CHF 22.95 million lower than on December 31, 2013 (CHF 40.00 million). This net change is composed of a cash increase of payment of CHF 1.00 million from a collaboration partner and other payments (mainly payments from sub-tenants) of CHF 3.01 million. Cash decreased primarily due to expenses incurred from ongoing activities (CHF 15.35 million) as well as costs associated with winding down supplier agreements (CHF 5.60 million). In addition, a payment of CHF 2.00 million was made in connection with a final settlement related to liabilities of Asklia Holding AG which were assumed in the 2002 merger.

As per December 31, 2014 the total amount of debt amounted to around CHF 46 million. Half of the debt was comprised of the convertible bonds issued in 2007 and restructured in 2012. , As outlined above, the Company expects that the bonds can be exchanged into shares in the first half of May 2015. The other half of the debt is comprised of the convertible loan notes issued in 2012 of which a major part has been repaid at maturity and negotiations on the settlement of the remaining part are ongoing with the loan note holders.

Revenues Revenues comprising income from license fees paid by Novartis of CHF 1.00 million has been recognized in the year 2014, unchanged from the same period in 2013.

Cash burn The gross cash burn for operating activities, as calculated on the cash flow statement, was CHF 2.06 million on average per month during the year 2014, compared to CHF 1.68 million on average per month in the year of 2013.

 
(in CHF million)                                          FY 2014   FY 2013 
Revenue                                                       1.0       1.0 
Net operating costs                                        (19.9)    (24.3) 
Operating loss                                             (18.9)    (23.3) 
Net loss                                                   (34.0)    (30.8) 
Net loss per share (in CHF)                                (1.11)    (1.32) 
 
(in CHF million)                                     31.12.2014  31.12.2013 
 
Cash, cash equivalents & trade and other                     17.1      40.0 
receivables 
Full-time equivalents                                         8.0      28.7 
 

The detailed Annual Report 2014 can be downloaded at:

http://www.cytos.com/uploads/2014/Cytos_FY_2014_EN.pdf

For further information, please contact:

Cytos Biotechnology Ltd Harry Welten, MBA Chief Financial Officer Tel: +41 44 733 46 46 harry.welten@cytos.com

About Cytos Biotechnology Ltd

Cytos is a public biopharmaceutical company located in Schlieren (Zurich), Switzerland. The Company is listed according to the Main Standard on the SIX Swiss Exchange Ltd under the symbol CYTN.

Forward Looking Statements This media release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. You are urged to consider statements that include the words "will" or "expect" or the negative of those words or other similar words to be uncertain and forward-looking. Factors that may cause actual results to differ materially from any future results expressed or implied by any forward-looking statements include scientific, business, economic and financial factors, Against the background of these uncertainties, readers should not rely on forward-looking statements. The Company assumes no responsibility for updating forward-looking statements or adapting them to future events or developments.

www.cytos.com End of ad hoc announcement

+++++ Additional features:

Document: http://n.equitystory.com/c/fncls.ssp?u=AWUBPYOEUC Document title: Cytos_AR14_150428

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2015-04-28 News transmitted by EQS Schweiz AG. www.eqs.com - news archive: http://switzerland.eqs.com/de/News

The issuer is responsible for the contents of the release.

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Language: English Company: Cytos Biotechnology AG Wagistr. 25 8952 Schlieren Switzerland Phone: +41 44 733 4747 Fax: +41 44 733 4740 E-mail: info@cytos.com Internet: www.cytos.com ISIN: CH0011025217, CH0029060735 Valor: - Listed: Regulated Unofficial Market in Berlin, Munich, Stuttgart; Open Market in Frankfurt ; SIX

End of News EQS Group News-Service =-------------------------------------------------------------------- 349321 2015-04-28 (END) Dow Jones Newswires

   April 28, 2015 01:00 ET (05:00 GMT)- - 01 00 AM EDT 04-28-15