Market Newsdesk

TORONTO, Nov. 17, 2020 (GLOBE NEWSWIRE) — Flow Capital Corp. (TSXV: FW) (“Flow Capital”) today announced its financial and operating results for the three-month and nine-month periods ended September 30, 2020. Financial references are in Canadian dollars unless otherwise specified.

2020
Third
Quarter Highlights

• Estimated book value at the end of Q3 of approximately $0.55 per share; year-to-date (YTD) growth of more than 21% from the book value at the year-end December 31, 2019
• Q3 total revenue under IFRS $3,839,000; YTD $6,767,000
• Q3 net income from continuing operations of $1,846,000; YTD $1,504,000
• Q3 adjusted EBITDA⁽¹⁾ of $1,520,000; YTD $2,356,000
• Q3 cash generated from operations of $1,567,000; YTD $2,230,000

“In the third quarter, we achieved a steady growth in revenue as well as high levels of operating efficiency and resource allocation. The strong performance of our investment portfolio, throughout the COVID-19 uncertainty has helped us grow book value per share by over 21% year to date,” said Alex Baluta, Chief Executive Officer of Flow Capital.

“We were also focused on fundraising and closed $17,000,000 post quarter-end in early October, as the first tranche towards Priority Return Fund II. The capital raised adds to our capacity to make more investments and freed up capital to repay our outstanding B debenture. To that end we recently announced that we will be redeeming the B debenture 7 months early, and in the past two weeks we have closed two investments, deploying $6,500,000. Looking ahead we remain focused on deal origination and continued growth in book value.”

Financial Highlights

(1) Adjusted EBITDA, Free Cash Flow and Net Asset Value per outstanding share are non-IFRS measures. Refer to section Definition of Non-IFRS Measures in the MD&A for further explanation and definitions.
(2) Calculated by taking Total Shareholders’ Equity as reported on the Statements of Financial Position over the number of outstanding common shares.
(3) The Book Value per share for the three and nine-month periods ended September 30, 2019 includes a deferred tax asset valued at $0.2328 per share. This deferred tax asset was written down to zero on the books at the end of the financial year at December 31, 2019 but is available for Flow Capital to use against future profits in tranches till 2039. Hence, the relevant comparable value of Book Value per share for September 30, 2019 is $0.4624. As at September 30, 2020, the Book Value per share has increased to $0.5501.

Revenues

Total revenues were $3,839,000 and $6,767,000 for the three-month (Q3 2020) and nine-month (YTD 2020) periods ended September 30, 2020 compared to $473,000 and $2,017,000 for the corresponding periods in 2019. Recurring royalties and interest earned were $1,611,000 for Q3 2020 and $3,837,000 for YTD 2020, an increase of 20% and a decline of 12% compared to $1,340,000 and $4,343,000 in the corresponding periods in 2019. The decline in recurring revenue was due to royalty buyouts in the last twelve months and continued non-accrual of royalty income from old distressed investments.

Non-cash items included in revenue under IFRS, had a net impact of $1,893,000 in the quarterly period ended Q3 2020, compared to $(2,426,000) in the corresponding period in 2019. This represents $2,108,000 for adjustments to fair value and $(215,000) for foreign exchange loss. Included in the adjustments to fair value was $(804,000) relating to equity instruments held and $2,912,000 for fair value adjustments on various investments in the portfolio.

Operating Expense

Total operating expenses were $520,000 and $2,827,000 for Q3 2020 and YTD 2020 compared to $890,000 and $2,881,000 for the corresponding periods in 2019.   The operating expenses in Q3 2020 are lower, primarily due to lower professional fees and general administrative expenses offset by an increase in salaries due to additions to the team.

Profit
(Loss)
After Taxes

Profit (loss) after taxes from continuing operations was $1,846,000 and $1,504,000 for Q3 2020 and YTD 2020 compared to $(896,000) and $(2,034,000) for the corresponding periods in 2019. The improving profitability reflects the continued emphasis on cost efficiencies, growth in the fair value of the investment portfolio and no additional investments becoming distressed in the current year.

Adjusted
EBITDA

<sup>(


1)</sup>


Adjusted EBITDA(1) was $1,520,000 and $2,356,000 for Q3 2020 and YTD 2020 compared to $1,717,000 and $3,723,000 for the corresponding periods in 2019. The decrease in Adjusted EBITDA(1) for Q3 2020 and YTD 2020 compared to the corresponding periods in 2019 was mainly attributed to higher earnings in the current period offset by greater realized losses from investments written off and sale of equity investments, and unrealized foreign exchange movements, in the previous periods.

Free Cash
Flow

<sup>(


1)</sup>


Free Cash Flow(1) was $1,047,000 and $1,012,000 for Q3 2020 and YTD 2020 compared to $1,477,000 and $2,138,000 for the corresponding periods in 2019, with the decline primarily due to $931,000 of cash flow in YTD 2019 contributed by the LOGiQ Global Partners business which was subsequently sold in Q2 2019.

Assets

(1) Adjusted EBITDA, and Free Cash Flow are non-IFRS measures. Refer to section Definition of Non-IFRS Measures in the MD&A for further explanation and definitions.

Conference Call Details
Flow Capital will host a conference call to discuss these results at 8:30 a.m. Eastern Time, Wednesday, November 18, 2020. Participants should call +1 (778) 560-2703 or +1 (833) 968-1926 and ask an operator for the Flow Capital earnings call. Please dial in 10 minutes prior to the call to secure a line. A replay will be available shortly after the call. To access the replay, please dial +1 (416) 621-4642 or +1 (800) 585-8367 and enter access code 4878065. The replay recording will be available until 11:59 p.m. Eastern Time, November 25, 2020.

An audio recording of the conference call will be also available on the investors’ page of Flow Capital’s website at www.flowcap.com/financials. 

About Flow
Capital

Flow Capital Corp. is a diversified alternative asset investor and advisor, specializing in providing minimally dilutive capital to emerging growth businesses. To apply for financing, visit www.flowcap.com.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; including the Company’s opinion regarding the current and future performance of its portfolio, expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in the Company’s business and the markets in which it operates; the amount and timing of the payment of dividends by the Company; and the Company’s financial position. By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.

An investment in securities of the Company is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in the Company; the volatility of the Company’s share price; the Company’s limited operating history; the Company’s ability to generate sufficient revenues; the Company’s ability to manage future growth; the limited diversification in the Company’s existing investments; the Company’s ability to negotiate additional royalty purchases from new investee companies; the Company’s dependence on the operations, assets and financial health of its investee companies; the Company’s limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of the Company’s investments; the Company’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters, including the potential impact of the Foreign Account Tax Compliance Act on the Company; the potential impact of the Company being classified as a Passive Foreign Investment Company (“PFIC”); the Company’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly the Company’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions; as well as the risks discussed in the joint management information circular of the Company dated May 2, 2018 and the risks discussed herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect the Company’s business and its ability to identify and close new opportunities with new investees are material factors that the Company considered when setting its strategic priorities and objectives, and its outlook for its business.

Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies relevant to the Company’s investment focus will remain relatively stable over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that the Company’s existing investees will continue to make royalty payments to the Company as and when required; that the businesses of the Company’s investees will not experience material negative results; that the Company will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital; that the Company will have the ability to raise required equity and/or debt financing on acceptable terms; and that the Company will have sufficient free cash flow to pay dividends. The Company has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, the Company primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

The forward-looking information and forward-looking statements contained in this PRESS RELEASE are made as of the date of this PRESS RELEASE, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For
further
information,
please
contact:

Flow Capital
Corp.:

Alex Baluta

Chief
Executive
Officer
Tel: (416) 777-0383

SAN DIEGO, Nov. 17, 2020 (GLOBE NEWSWIRE) — Oncternal Therapeutics, Inc. (Nasdaq: ONCT), a clinical-stage biopharmaceutical company focused on the development of novel oncology therapies, today announced that it has entered into an underwriting agreement with H.C. Wainwright & Co., LLC under which the underwriter has agreed to purchase on a firm commitment basis 6,451,613 shares of common stock of the Company, at a price to the public of $3.10 per share, less underwriting discounts and commissions. The closing of the offering is expected to occur on or about November 20, 2020, subject to satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the sole book-running manager for the offering.

The Company also has granted to the underwriter a 30-day option to purchase up to an additional 967,741 shares of common stock at the public offering price, less underwriting discounts and commissions. The gross proceeds to Oncternal, before deducting underwriting discounts and commissions and offering expenses and assuming no exercise of the underwriter’s option to purchase additional common stock, are expected to be approximately $20.0 million. The Company intends to use the net proceeds from this offering for general corporate purposes, including expenses related to the clinical and preclinical development of cirmtuzumab and TK216, preclinical development of its ROR1 CAR-T program, and for working capital.

The shares of common stock are being offered by Oncternal pursuant to a “shelf” registration statement on Form S-3 (File No. 333-222268) previously filed with the Securities and Exchange Commission (the “SEC”) on December 22, 2017 and declared effective by the SEC on January 5, 2018. The offering of the shares of common stock is made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the shares of common stock being offered will be filed with the SEC.  Electronic copies of the preliminary prospectus supplement and accompanying prospectus may be obtained, when available, on the SEC’s website at http://www.sec.gov or by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (646) 975-6996 or e-mail at [email protected].

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Oncternal Therapeutics

Oncternal Therapeutics is a clinical-stage biopharmaceutical company focused on the development of novel oncology therapies for the treatment of cancers with critical unmet medical need. Oncternal focuses drug development on promising yet untapped biological pathways implicated in cancer generation or progression. The clinical pipeline includes cirmtuzumab, an investigational monoclonal antibody designed to inhibit the ROR1 pathway, a type I tyrosine kinase-like orphan receptor, that is being evaluated in a Phase 1/2 clinical trial in combination with ibrutinib for the treatment of patients with mantle cell lymphoma (MCL) and chronic lymphocytic leukemia (CLL) and in an investigator-sponsored, Phase 1b clinical trial in combination with paclitaxel for the treatment of women with HER2-negative metastatic or locally advanced, unresectable breast cancer. The clinical pipeline also includes TK216, an investigational targeted small-molecule inhibitor of the ETS family of oncoproteins, that is being evaluated in a Phase 1 clinical trial for patients with Ewing sarcoma alone and in combination with vincristine chemotherapy. In addition, Oncternal has a program utilizing the cirmtuzumab antibody backbone to develop a CAR-T therapy that targets ROR1, which is currently in preclinical development as a potential treatment for hematologic cancers and solid tumors. More information is available at www.oncternal.com.

Forward-Looking Information

Oncternal cautions you that statements included in this press release that are not a description of historical facts are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negatives of these terms or other similar expressions. These statements are based on Oncternal’s current beliefs and expectations.  Forward-looking statements include statements regarding: the completion of the offering, the satisfaction of customary closing conditions related to the offering and the intended use of net proceeds from the offering. The inclusion of forward-looking statements should not be regarded as a representation by Oncternal that any of its plans will be achieved. Actual results may differ from those set forth in this release due to the risks and uncertainties inherent in Oncternal’s business, including, without limitation: market and other conditions and the satisfaction of customary closing conditions related to the offering; and other risks described in Oncternal’s prior press releases as well as in public periodic filings with the U.S. Securities & Exchange Commission. All forward-looking statements in this press release are current only as of the date hereof and, except as required by applicable law, Oncternal undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements are qualified in their entirety by this cautionary statement. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Oncternal Contacts:

Company Contact

Richard Vincent
858-434-1113
[email protected]

Investor Contact

Corey Davis, Ph.D.            
LifeSci Advisors                 
212-915-2577                   
[email protected]

Source: Oncternal Therapeutics, Inc.

EPS Increases


to $0.65 per Basic Share

Balance Sheet Fortified with $43.3


Million


in Cash, No Debt

SAN DIEGO, Nov. 17, 2020 (GLOBE NEWSWIRE) —  Franklin Wireless Corp.(FKWL), a market leader in broadband data communications including hardware and software solutions for M2M and the IoT (Internet of Things), today announced record financial results for the first fiscal quarter, the period ended September 30, 2020.

Financial and Operational Highlights

• First quarter revenues increased 605% to a record $62.6 million.
• First quarter operating income of $9.2 million versus $276,000 in the first quarter last year.
• First quarter net income increased to $6.9 million, a positive swing of $6.6 million versus the first quarter last year.

“The record quarterly results reflect continued strong demand for our solutions as schools and businesses adapt to the network requirements of today,” said OC Kim, president of Franklin Wireless. “This level of activity is likely to normalize over time as the global situation improves, but we remain well-positioned with compelling, American solutions for in-demand technologies like broadband mobile hotspots.”

First
Quarter Financial Results
(three months ended
September
30, 2020 compared to three months ended
September
30
,
2019)

The Company reported net sales of $62.6 million, compared with $8.9 million in net sales in the same period last year. The 605% year-over-year growth in net sales was due to increased demand for wireless connectivity, including broadband mobile devices and IOT products.

Net income was approximately $6.9 million, or $0.65 per basic share, compared to approximately $254,000, or $0.02 per basic share last year.

The Company’s 10-Q filing for the period ending September 30, 2020 is on file with the SEC (www.sec.gov).

About Franklin Wireless

Franklin Wireless Corp. (FKWL) is a global leader in innovative hardware and software products that support machine-to-machine (M2M) applications and the Internet of Things (IoT), as well as intelligent wireless solutions including mobile hotspots, routers and modems. For more information, please visit www.franklinwireless.com.

Safe Harbor Statement:

Certain statements in this press release constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any future results, performance or achievements, expressed or implied by such forward-looking statements.

Contact:

Franklin Wireless Corp.
+1 858 623 0000
[email protected]