<PAGE>
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
FILING NO. 1 FOR THE MONTH OF FEBRUARY, 2000
VISIBLE GENETICS INC.
---------------------
(Exact name of Registrant)
700 BAY STREET, SUITE 1000, TORONTO ON, CANADA M5G 1Z6
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F
Form 20-F |X| Form 40-F |_|
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes |_| No |X|
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<PAGE>
VISIBLE GENETICS INC.
On February 24, 2000, Visible Genetics Inc. (the "Company") issued a
press release to report its financial results for the fourth quarter and year
ended December 31, 1999, as follows. The Company reported sales of $ 5.0 million
for the fourth quarter of 1999 and $13.6 million for the year ended December 31,
1999, compared to $4.1 million and $10.9 million for the respective periods in
1998. The net loss for the fourth quarter of 1999 was $ 6.8 million or $0.76 per
share, compared to a net loss of $4.4 million or $0.52 per share for the same
period in 1998. For the year ended December 31, 1999, the Company reported a net
loss of $25.3 million or $ 2.73 per share, compared to $14.9 million or $1.91
per share for 1998. (All amounts are in United States dollars.)
The increase in the loss for the fourth quarter and the year of 1999
was due to increased expenses for clinical trials and regulatory costs related
to the TruGene HIV-1 Genotyping kit, the continued growth of the Company's
marketing, sales and support organizations and during the fourth quarter, $1.3
million in non-cash charges. The non-cash charges include $0.8 million related
to the planned relocation of certain activities to the Company's manufacturing
and marketing facilities being established in Atlanta and $0.5 million for the
write off of certain patents and licenses that are no longer expected to be used
by the Company. During the fourth quarter gross margins continued to improve as
they increased to 40% from 35% in the third quarter of 1999. Cash and short term
investments at December 31, 1999 amounted to $42.7 million, compared to $11.3
million at December 31, 1998.
The Company hereby incorporates by reference this Form 6-K into the
Company's outstanding Registration Statements on Form F-3 (File Nos. 333-67607,
333-68939, 333-91155 and 333-94649) and all of the Company's outstanding
Registration Statements on Form S-8 (including, but not limited to, File Nos.
333-6454, 333-8804 and 333-11434).
Exhibit 1. Third Quarter and 1999 Year End Results.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
VISIBLE GENETICS INC.
Date: February 24, 2000 By: /s/ Thomas J. Clarke
----------------------------------
Name: Thomas J. Clarke
Title: Chief Financial Officer
<PAGE>
Exhibit 1
VISIBLE GENETICS INC.
CONSOLIDATED BALANCE SHEETS
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
DECEMBER 31 DECEMBER 31
1999 1998
------------ ------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 2,792,985 $ 6,165,924
Short-term investments 39,894,978 5,108,254
Trade receivables, net of allowance for doubtful accounts 5,657,822 4,770,796
Other receivables 668,748 1,445,820
Prepaid and deposits 729,307 233,072
Inventory 2,600,007 3,912,336
------------ ------------
TOTAL CURRENT ASSETS 52,343,847 21,636,202
FIXED ASSETS 4,173,335 3,877,163
PATENTS AND LICENSES 2,122,367 2,269,170
------------ ------------
$ 58,639,549 $ 27,782,535
============ ============
LIABILITIES
CURRENT LIABILITIES
Notes payable $ -- $ 7,494,877
Accounts payable 3,110,442 3,985,103
Accrued liabilities 3,622,110 1,723,840
------------ ------------
TOTAL CURRENT LIABILITIES 6,732,552 13,203,820
------------ ------------
MANDITORILY REDEEMABLE CONVERTIBLE
PREFERRED STOCK 27,555,652 --
------------ ------------
SHAREHOLDERS' EQUITY
Share capital 75,422,070 46,412,685
Other equity 8,987,328 2,232,465
Cumulative translation adjustment (619,911) 84,822
Deficit (59,438,142) (34,151,257)
------------ ------------
24,351,345 14,578,715
------------ ------------
$ 58,639,549 $ 27,782,535
============ ============
</TABLE>
<PAGE>
VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED DECEMBER 31 TWELVE MONTHS ENDED DECEMBER 31
1999 1998 1999 1998
------------ ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C>
SALES $ 4,954,457 $ 4,078,338 $ 13,626,920 $ 10,875,348
COST OF SALES 2,954,234 2,267,852 9,272,886 6,673,581
------------ ------------ ------------ ------------
GROSS MARGIN 2,000,223 1,810,486 4,354,034 4,201,767
EXPENSES
Sales, general and administrative 6,204,167 3,860,451 19,073,546 11,515,757
Research and development 1,948,908 1,704,482 7,935,327 6,709,075
Exit and termination costs 789,849 -- 1,329,083 --
------------ ------------ ------------ ------------
8,942,924 5,564,933 28,337,956 18,224,832
------------ ------------ ------------ ------------
LOSS FROM OPERATIONS BEFORE INTEREST (6,942,701) (3,754,447) (23,983,922) (14,023,065)
Interest income 343,296 64,149 694,549 264,195
Interest and financing expense (214,040) (697,560) (1,997,512) (1,132,091)
------------ ------------ ------------ ------------
NET LOSS FOR THE PERIOD $ (6,813,445) $ (4,387,858) $(25,286,885) $(14,890,961)
Cumulative preferred dividends and accretion
of discount attributable to preferred stock (938,484) $ -- (1,770,069) $ --
------------ ------------ ------------ ------------
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (7,751,929) $ (4,387,858) $(27,056,954) $(14,890,961)
Weighted average number of common
shares outstanding 10,144,712 8,442,970 9,916,954 7,782,094
------------ ------------ ------------ ------------
BASIC AND DILUTED LOSS PER COMMON SHARE $ (0.76) $ (0.52) $ (2.73) $ (1.91)
============ ============ ============ ============
</TABLE>
<PAGE>
VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
TWELVE MONTHS ENDED DECEMBER 31
1999 1998
------------ ------------
<S> <C> <C>
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Net Loss for the year $(25,286,885) $(14,890,961)
Add: Items not involving cash -
Depreciation 1,708,923 1,090,086
Amortization 393,979 206,640
Patents and licenses written off 451,085 --
Deferred compensation cost related to options granted -- 77,469
Non cash financing expense related to warrants granted 1,466,691 580,981
Amortization of discount on accounts receivable (48,158) --
Foreign exchange loss 26,789 28,453
In-process research and development acquired -- 420,043
Increase ( decrease ) from changes in -
Trade receivables (1,804,006) (2,327,121)
Other receivables 719,519 (850,270)
Prepaid and deposits (501,742) 28,913
Inventory 1,290,997 (3,149,740)
Accounts payable (734,230) 2,490,594
Accrued liabilities 1,956,660 1,159,952
------------ ------------
(20,360,378) (15,134,961)
============ ============
INVESTING ACTIVITIES
Purchase of fixed assets (1,905,129) (3,348,261)
Licenses and patents acquired (698,261) (877,796)
Purchase of short-term investments (50,503,643) (13,705,737)
Redemption of short-term investments 15,716,919 14,616,777
Acquisition of ACT Gene S.A -- (536,929)
------------ ------------
(37,390,114) (3,851,946)
============ ============
FINANCING ACTIVITIES
Preferred stock issued, net of expenses 22,719,748 --
Warrants issued in connection with preferred stock 6,397,448 --
Common shares issued, net of expenses 29,009,385 14,640,188
Warrants issued in connection with private placement -- 444,572
Issuance of notes payable -- 6,817,559
Warrants issued in connection with notes payable -- 1,182,441
Repayment of note payable (4,100,000) --
Other equity 29,851 8,259
Repayment of loan from an officer 323,405 --
------------ ------------
54,379,837 23,093,019
============ ============
EFFECT OF EXCHANGE RATE FLUCTUATIONS ON CASH (2,284) 193,133
------------ ------------
INCREASE (DECREASE) IN CASH DURING THE YEAR (3,372,939) 4,299,245
CASH, BEGINNING OF YEAR 6,165,924 1,866,679
------------ ------------
CASH, END OF YEAR $ 2,792,985 $ 6,165,924
============ ============
</TABLE>
<PAGE>
VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
TWELVE MONTHS ENDED DECEMBER 31
1999 1998
------------ ------------
<S> <C> <C>
Net loss for the year $(25,286,885) $(14,890,961)
Other comprehensive income:
Foreign currency translation adjustments (704,733) 112,477
------------ ------------
Comprehensive loss for the year $(25,991,618) $(14,778,484)
------------ ------------
</TABLE>
VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF DEFICIT
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
TWELVE MONTHS ENDED DECEMBER 31
1999 1998
------------ ------------
<S> <C> <C>
Deficit, beginning of year $(34,151,257) $(19,260,296)
Net loss for the year (25,286,885) (14,890,961)
------------ ------------
Deficit, end of the year $(59,438,142) $(34,151,257)
------------ ------------
</TABLE>
