iCo Therapeutics Announces First Quarter 2021 Financial Results

Vancouver, British Columbia – (Newsfile Corp. – May 31, 2021) – iCo Therapeutics (TSXV: ICO) (OTCQB: ICOTF) (“iCo” or the “Company”) today announced financial results for the quarter ended March 31 announced, 2021. Unless otherwise stated, amounts are expressed in Canadian dollars and presented in accordance with International Financial Reporting Standards (“IFRS”).

William Jarosz, CEO of iCo Therapeutics Inc. stated, “We are very encouraged with our progress in the first quarter of 2021. We are working to finalize our previously announced agreement with Satellos. We have raised CAD 7.25 million for a private placement We.” have received a vote of confidence from existing investors regarding the exercise of outstanding warrants and are developing our oral Amp B program towards clinical results across multiple indications. In the near future, we will be carefully working with the stock exchange to finalize our filing for the annual general meeting and the date for the general meeting to review the agreement with Satellos is expected to be announced in the near future. “

Q1 2021 operational and financial highlights

Corporate

On March 21, 2021, the Company entered into an agreement (the “Agreement”) that provides for the business combination of iCo and Satellos Bioscience Inc. (“Satellos”) under a draft agreement (the “Agreement”). in accordance with Section 192 of the Canada Business Corporations Act (the “CBCA”). Under the terms of the agreement, Satellos will become a wholly-owned subsidiary of iCo and the parties expect a merger of iCo and Satellos to result in “Satellos Bioscience Inc.” is completed. (the “Resulting Issuer”) operating in the life science industry. Under the agreement and concurrent financing (described below), iCo shareholders will own approximately 27.7% and Satellos shareholders will own approximately 58.8% of the outstanding common stock of the resulting issuer.

The story goes on

The completion of the Agreement will result in a readmission of iCo as defined in the policies of the TSX Venture Exchange (the “Exchange”). The conclusion of the agreement is subject, among other things, to the approval of the stock exchange, court approval and approval by the shareholders of iCo and Satellos. Under the Agreement, iCo has entered into a private placement (the “Concurrent Funding”) of subscription receipts (the “Subscription Receipts”) that will produce 85,294,117 subscription receipts at a cost of $ 0.085 per subscription receipt for a total of approximately 7.25 million gross proceeds . CAD Each subscription receipt entitles the holder to receive one common share of the resulting issuer upon fulfillment of certain conditions for the release of escrow accounts and without payment of any additional consideration. The proceeds from the simultaneous financing have been deposited and will be used for research, development and general corporate expenses of the resulting issuer after fulfillment of the release conditions and conclusion of the agreement.

For the quarter ended March 31, 2021, 27,335,000 warrants were exercised for proceeds of $ 1,758,795.

Oral Amp B delivery system

On March 15, 2021, iCo announced that its wholly owned subsidiary Amphotericin B Technologies, Inc. has entered into an agreement with the IIT Research Institute to evaluate the in vivo efficacy of the novel Amphotericin B oral asset (“iCo-019”) by iCo to be tested against SARS-CoV-2, the causative agent of COVID-19 in the hACE2 mouse model (the “iCo-019 study”). iCo expects the iCo-019 study to be completed by the end of the second quarter of 2021.

Financial results for the quarter ended March 31, 2021

For the quarter ended March 31, 2021, we recorded a total loss of $ 780,194 compared to a total loss of $ 645,570 for the quarter ended March 31, 2020, which is an increased loss of $ 134,624. The increase in loss is mainly due to higher general administrative expenses and lower refundable research and development tax credits, which were offset by lower research and development expenses in 2021.

Research and development costs were $ 82,971 for the quarter ended March 31, 2021, compared to $ 670,690 for the quarter ended March 31, 2020, a decrease of $ 587,719. The decrease was due to the completion of our Phase 1b clinical trial of Oral Amp B in the same quarter last year. Accordingly, our contract research costs have fallen significantly compared to the previous year.

For the quarter ended March 31, 2021, general and administrative expenses were $ 690,899 compared to $ 216,436 for the quarter ended March 31, 2020, an increase of $ 474,463. The increase reflects higher fees incurred in connection with the agreement with Satellos during the reporting period.

Liquidity and outstanding share capital

We had cash and cash equivalents of $ 2,103,250 as of March 31, 2021, compared to $ 65,413 as of December 31, 2020.

As of May 31, 2021, we had an unlimited number of authorized common shares with 181,292,713 common shares issued and outstanding.

For full financial results, please see our records at www.sedar.com.

About iCo Therapeutics Inc.

iCo Therapeutics identifies existing assets under development for use in underserved eye and infectious diseases. Such assets may be of use in non-ophthalmic conditions outside of the company’s core business activities. In this case, the company will seek additional value through partnerships. iCo shares trade on the TSX Venture Exchange under the symbol “ICO” and on the OTCQB under the symbol “ICOTF”.

For more information, please visit the company’s website at: www.icotherapeutics.com.

No regulatory authority has approved or disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulatory Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Forward-Looking Statements

Certain statements contained in this press release may be viewed as forward-looking statements within the meaning of applicable securities laws, which may include, but are not limited to, statements regarding the conclusion of the agreement, the general meeting of shareholders to review the agreement, satisfaction of the conditions for release of the escrow account, intended use of the proceeds from the concurrent funding, progress of the Oral Amp B program and potential of the Oral Amp B as a therapeutic for the novel coronavirus. Forward-looking statements can be identified by words such as: “anticipate”, “intend”, “plan”, “aim”, “seek”, “believe”, “project”, “estimate”, “expect”, “strategize”, ” “The future,” “likely,” may, “” should, “” will “and similar references to future periods. Such statements involve known and unknown risks, uncertainties and other factors that could cause actual results, performance or successes differ materially from those implied by such statements. Therefore, these statements should not be taken as guarantees of future performance or results. All forward-looking statements are based on iCo’s current beliefs and assumptions and information currently available to iCo relate, among other things, to expected financial performance, business prospects, strategies, regulatory developments, market acceptance and future obligations statements, including statements regarding the reporting of further study data for the Oral Amp Delivery System, the timing of receipt of statistical analysis for clinical data, the timing, receipt and amount of recoverable tax credits in Australia, the decline in research and development expenditures and completion of additional expenditures Funding and initiation of additional clinical trials. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based only on information currently available to iCo and speak only as of the date of this press release. Actual events could differ materially from current expectations due to risks and uncertainties, including those risks and uncertainties identified by iCo in its public security filings and on its website. In evaluating any forward-looking statements, readers should consider the risk factors listed herein in the “Risk Factors Relating to the Agreement” section of the Company’s Management Discussion and Analysis dated May 31, 2021 and the Company’s Annual Information Form dated April 29, 2019, which both are available under iCo’s profile on SEDAR at www.sedar.com and are identified from time to time in the company’s filings under its profile on SEDAR. All forward-looking statements are made as of the date of this press release and iCo disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, unless required by law.

iCo contact information

William Jarosz
managing Director
iCo Therapeutics
(917) 692-8799
Jarosz@icotherapeutics.com

NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISTRIBUTION TO US NEWSWIRE SERVICES.

The source version of this press release can be found at https://www.newsfilecorp.com/release/85924

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