Life sciences holding company Bio-Light Israeli Life Sciences Investments Ltd. (TASE:BOLT) yesterday appended a profit warning to its financial report for the first quarter of 2010, for the second consecutive quarter. Company auditor Kost Forer Gabbay and Kaiserer Ernst & Young Israel note in its warning that the company posted a net loss of NIS 6 million for the first quarter and had a negative cash flow of NIS 5.5 million.
Bio-Light's accumulated loss was NIS 106.3 million at the end of March, which prompted the going concern warning. It had NIS 14.3 million in cash and marketable securities
In the financial report, Bio-Light said that it was seeking to raise capital and find partners, and that it was in contact with Israeli and foreign investment houses for this purpose.
Bio-Light added that the shekel's sharp appreciation against the euro was liable to have a material effect on the company's costs, because the EU is one of the company's targets for the commercialization of its subsidiaries' products under development. The developing financial crisis in Europe is liable to slow the company's penetration in these markets.
Bio-Light has three portfolio companies: it owns 91.3% of OBEcure Ltd., which is developing an obesity treatment; 87% of IOptima Ltd., which is developing a laser surgical technique to treat glaucoma; and 100% of Zetiq Technologies Ltd., which is developing a diagnostic technique for cancer cells.
Bio-Light's share price fell 5.3% at the opening today to NIS 0.54, after falling 5.5% yesterday. Its market cap is NIS 42 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 1, 2010
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