Bradmer Announces Third Quarter 2017 Financial and Operational Results

TORONTO, ONTARIO -- (Marketwired) -- 11/06/17 -- Bradmer Pharmaceuticals Inc. (NEX: BMR.H) ("Bradmer" or the "Company") today announced its third quarter 2017 financial results.

Financial Results

Amounts in US dollars, unless specified otherwise, and results prepared in accordance with International Financial Reporting Standards ("IFRS").

For the three months ended September 30, 2017, Bradmer recorded a net loss of $36,000 or $0.002 per common share based on the weighted average outstanding shares of 19,659,726 during the three month period, compared to a net loss of $20,000 or $0.001 per common share for the quarter ended September 30, 2016 based on the weighted average outstanding shares of 19,659,726.

General and administrative expenses were $24,000 in the three months ended September 30, 2017 compared to $24,000 in the same quarter of the prior year. Major expenses in 2017 consisted of consulting fees of $14,400, legal fees of $1,300, directors' and officers' liability insurance premiums of $2,500 and audit fees of $2,500. Expenses in 2016 consisted of consulting fees of $14,000, legal fees of $3,100, audit fees of $2,300 and directors' and officers' liability insurance premiums of $2,400.

The $12.700 foreign exchange loss in the third quarter of 2017 compared with a $3,100 foreign exchange gain in the same quarter of 2016.

For the nine months ended September 30, 2017, the Company recorded a net loss of $110,000 or $0.006 per common share based on the weighted average outstanding shares of 19,659,726 during the nine month period, compared to a net loss of $114,000 or $0.006 per common share for the nine months ended September 30, 2016 based on the weighted average outstanding shares of 19,659,726.

General and administrative expenses were $84,000 in the nine months ended September 30, 2017 compared to $92,000 in the same period of the prior year. Major expenses in 2017 consisted of consulting fees of $41,300, legal fees of $19,400, audit fees of $7,600 and insurance premiums of $7,300. Expenses in 2016 consisted of consulting fees of $41,000, legal fees of $23,000, transfer agent and stock exchange listing fees of $10,000, audit fees of $7,000 and insurance premiums of $7,000.

A $25,600 foreign exchange loss in the first nine months of 2017 compared with a $22,200 foreign exchange loss in the same period of 2016.

Bradmer's operational activities for the nine months ended September 30, 2017 were financed by cash on hand. At September 30, 2017, the Company had working capital of $296,000, compared to $382,000 at December 31, 2016. Bradmer had available cash of $316,000 (CDN $395,000) as at September 30, 2017, compared to cash of $414,000 (CDN $556,000) as at December 31, 2016. The $98,000 decrease in cash was due to the $110,000 net loss and the $12,000 increase in non-cash working capital, offset by $24,000 of foreign currency adjustments.

As at November 6 and September 30, 2017, the Company had 19,659,726 common shares and options to purchase 1,950,000 common shares outstanding.

Proposed Reverse Takeover Transaction

Bradmer entered into a letter of intent dated October 10, 2017 with First Coin Capital Corp. ("First Coin"), pursuant to which Bradmer proposes to complete a business combination with First Coin (the "Proposed Transaction").

First Coin is a Vancouver based technology company focusing on executing and investing in Initial Coin Offerings ("ICO's") for established companies with a proven track record of success based on revenue and EBITDA margins. First Coin's objective is to provide institutional and retail investors with exposure to blockchain and to the cryptocurrency ecosystem through a proprietary brokerage platform that allows direct investment in ICO's. By so doing First Coin intends to benefit from the increase in the amount of capital entering the cryptocurrency space.

First Coin is a technology services company engaged in the business of helping established companies access the emerging digital currency asset class. It does so by enabling the issue of tokens or coins that will trade against other cryptocurrencies or against fiat currency. These coins are intended for use within a client company's business ecosystem and to help fund the expansion of their businesses.

The Proposed Transaction will be conditional upon negotiation and execution of a definitive agreement for the completion of the Proposed Transaction (the "Definitive Agreement"). The Definitive Agreement will include customary representations and warranties and conditions to closing.

If completed, the Proposed Transaction will constitute a reverse takeover of Bradmer by First Coin pursuant to the policies of the TSX Venture Exchange (the "TSXV"). The Proposed Transaction will be an arm's length transaction.

As part of the Proposed Transaction, First Coin intends to complete a private placement of subscription receipts (the "Subscription Receipts") for gross proceeds of up to $10.0 million, with an agreed upon minimum of $4.0 million (the "Minimum Offering Amount"). Purchasers of the Subscription Receipts will ultimately acquire common shares of Bradmer pursuant to the Transaction, following the satisfaction of certain specified escrow release conditions attached to the Subscription Receipts. The Subscription Receipt financing will be led by GMP Securities L.P. and will be priced in the context of the market.

The Proposed Transaction is anticipated to be completed under an amalgamation or arrangement transaction under which the shareholders of First Coin, including the purchasers of the Subscription Receipts, will receive common shares of Bradmer. The number of shares of Bradmer to be issued to the shareholders of First Coin will be determined based on the agreed upon value of the outstanding common shares of Bradmer and the value of First Coin indicated by the price of the Subscription Receipts.

It is anticipated that Bradmer will complete a consolidation of its common shares in advance and as a condition to the completion of the Proposed Transaction. In addition, it is contemplated that Bradmer will change its corporate name and appoint nominees of First Coin to its board of directors upon completion of the Proposed Transaction. If a Definitive Agreement is concluded, it is anticipated that a meeting of the shareholders of Bradmer will be called to approve the share consolidation, the name change and the appointment of the First Coin directors.

Additional information about Bradmer, including the MD&A and financial results may be found on SEDAR at www.sedar.com.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Bradmer's common shares have not been registered under the Securities Act of 1933, as amended (the "Securities Act") or any state regulatory agency in the United States. The resale or transfer by a U.S. investor of such common shares of Bradmer Pharmaceuticals Inc. is subject to the requirements of Rule 904 of Regulation S of the Securities Act or such other applicable exemption thereunder, and other applicable state securities laws.

Except for historical information, this news release may contain forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause but are not limited to, changing market conditions, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.



BRADMER PHARMACEUTICALS INC.
Condensed Interim Statements of Financial Position
As at
(All amounts expressed in United States dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                          September 30,         December 31
                                                   2017                2016
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Assets

Current assets
  Cash                               $          316,366  $          413,894
  Amounts receivable                              2,381               3,413
  Prepaid expenses                                3,797               1,176
----------------------------------------------------------------------------

Total assets                         $          322,544  $          418,483
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Liabilities and Shareholders' Equity

Current liabilities
  Accounts payable and accrued
   liabilities                       $           26,793  $           36,759
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Shareholders' Equity
  Share capital                               1,839,905           1,710,138
  Contributed surplus                         2,033,152           1,889,755
  Accumulated other comprehensive
   income                                       646,029             895,332
  Deficit                                    (4,223,335)         (4,113,501)
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Total shareholders' equity                      295,751             381,724
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Total liabilities and shareholders'
 equity                              $          322,544  $          418,483
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Approved on behalf of the Board:


"Dale Boden"                        "Charles Lilly"
----------------------------------- -------------------------
Dale Boden, Director                Charles Lilly, Director

BRADMER PHARMACEUTICALS INC.
Condensed Interim Statements of Comprehensive Income
(All amounts expressed in United States dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             Nine Months Ended         Three Months Ended
                                September 30              September 30
                                2017         2016         2017         2016
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Expenses
  General and
   administrative        $    84,311  $    92,375  $    23,791  $    23,597
----------------------------------------------------------------------------

Other Income
  Interest                        84           87           29           29
  Foreign exchange
   (loss)/income             (25,608)     (22,199)     (12,738)       3,146
----------------------------------------------------------------------------

Loss for the period         (109,835)    (114,487)     (36,500)     (20,422)

Other comprehensive
 (loss)/income              (249,303)    (165,869)    (135,639)      27,471
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Comprehensive
 (loss)/income for the
 period                  $  (359,138) $  (280,356) $  (172,139) $     7,049
----------------------------------------------------------------------------
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Loss per share
Basic and diluted        $     0.006  $     0.006  $     0.002  $     0.001
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Weighted average number
 of shares outstanding    19,659,726   19,659,726   19,659,726   19,659,726
----------------------------------------------------------------------------

BRADMER PHARMACEUTICALS INC.
Condensed Interim Statements of Changes in Shareholders' Equity
For the nine months ended September 30
(All amounts expressed in United States dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                        Share capital
                               ------------------------------
                                  Number of                     Contributed
                                    shares         Amount         surplus
----------------------------------------------------------------------------

Balance, January 1, 2016            19,659,726    $ 1,659,105     $1,833,363

Foreign currency translation
 adjustment                                  -         91,449        101,053

Loss for the period                          -              -              -
----------------------------------------------------------------------------

Balance, September 30, 2016         19,659,726    $ 1,750,554 $    1,934,416
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Balance, January 1, 2017            19,659,726    $ 1,710,138 $    1,889,755

Foreign currency translation
 adjustment                                  -        129,767        143,397

Loss for the period                          -              -              -
----------------------------------------------------------------------------

Balance, September 30, 2017         19,659,726    $ 1,839,905 $    2,033,152
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BRADMER PHARMACEUTICALS INC.
Condensed Interim Statements of Changes in Shareholders' Equity
For the nine months ended September 30
(All amounts expressed in United States dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------



                                  Accumulated
                                     Other
                                 Comprehensive                     Total
                                    Income/                    Shareholders'
                                     (Loss)        Deficit         equity
----------------------------------------------------------------------------

Balance, January 1, 2016        $      985,568 $  (3,977,951) $      500,085

Foreign currency translation
 adjustment                          (165,869)              -         26,633

Loss for the period                          -      (114,487)      (114,487)
----------------------------------------------------------------------------

Balance, September 30, 2016     $      819,699 $  (4,092,438) $      412,231
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Balance, January 1, 2017        $      895,332 $  (4,113,501) $      381,724

Foreign currency translation
 adjustment                          (249,303)              -         23,861

Loss for the period                          -      (109,834)      (109,834)
----------------------------------------------------------------------------

Balance, September 30, 2017     $      646,029 $  (4,223,335) $      295,751
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BRADMER PHARMACEUTICALS INC.
Condensed Interim Statements of Cash Flows
For the nine months ended September 30
(All amounts expressed in United States dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                        2017           2016
----------------------------------------------------------------------------


Cash flows from operating activities
  (Loss) for the period                        $    (109,835) $    (114,487)
  Adjustments for:
  Foreign currency translation adjustment             23,484         20,950
----------------------------------------------------------------------------

                                                     (86,351)       (93,537)
  Change in non-cash operating items
    Amounts receivable                                 1,032         (2,673)
    Prepaid expenses                                  (2,621)        (2,344)
    Accounts payable and accrued expenses             (9,966)        20,052
----------------------------------------------------------------------------

                                                     (97,906)       (78,502)
Effect of exchange rate fluctuations on cash
 held                                                    378          5,683
----------------------------------------------------------------------------

Decrease in cash                                     (97,528)       (72,819)

Cash at beginning of period                          413,894        520,758
----------------------------------------------------------------------------

Cash at end of period                          $     316,366  $     447,939
----------------------------------------------------------------------------
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Contacts:
Bradmer Pharmaceuticals Inc.
Paul Van Damme
Chief Financial Officer
pvandamme@wcmcapital.ca
1.416.847.6905

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