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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 AUGUST, 2000
Visible Genetics Inc.
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(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
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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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VISIBLE GENETICS INC.
On August 17, 2000, we announced our financial results for the second
quarter and six months ended June 30, 2000.
We reported sales of $3.4 million for the second quarter ended June 30,
2000, compared to $1.9 million for the same period in 1999. The net loss
attributable to common shareholders for the quarter was $8.6 million or $0.59
per share, compared to a net loss attributable to common shareholders of $7.1
million or $0.75 for the same period in 1999. Sales for the first six months of
2000 were $7.1 million with a net loss attributable to common shareholders of
$15.3 million or $1.13 per share, compared to sales of $5.2 million and a net
loss attributable to common shareholders of $11.4 million or $1.21 per share,
for the corresponding period in 1999. The increase in the net loss for the
quarter was due primarily to increased R&D expenses related to the Company's
TRUGENE-TM- HIV-1 Genotyping Kit clinical trials and related expenses required
for the pending Food and Drug Administration (the "FDA") application.
In addition, on June 28th, we announced that we were in the process
of completing key molecular infectious clone studies for the TRUGENE(TM)
HIV-1 Genotyping Kit. All experimental work required for the submission has
now been completed and we anticipate filing with the FDA in the third quarter.
Our financial results for the quarter ended June 30, 2000 are filed as
an exhibit to this report.
This Form 6-K contains forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are subject to risks, uncertainties and
other factors which may cause our results to differ materially from
expectations. These include risks relating to the ability to obtain regulatory
approval, market acceptance of genotyping and our products, delays in, or the
refusal of, insurance companies and other third-party payors to reimburse us for
our products, delays in product development, delays in making our new Atlanta
manufacturing facility operational, and other risks detailed from time to time
in our SEC filings, including our most recent Annual Report on Form 20-F. These
forward-looking statements speak only as of the date hereof. We disclaim any
intent or obligation to update these forward-looking statements.
We hereby incorporate by reference this Form 6-K into our Registration
Statements on Form F-3, and into the prospectuses contained therein, (File Nos.
333-67607, 333-68939, 333-91155, 333-94649 and 333-40616) and our outstanding
Registration Statements on Form S-8 and into the reoffer prospectuses contained
therein.
Exhibit 1. Second Quarter Financial Results
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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: August 17, 2000 By: /s/ THOMAS J. CLARKE
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Name: Thomas J. Clarke
Title: Chief Financial Officer
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<TABLE>
<S> <C>
Exhibit 1
</TABLE>
VISIBLE GENETICS INC.
CONSOLIDATED BALANCE SHEETS
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
2000 1999
--------------- --------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,321,529 $ 2,792,985
Short-term investments 94,068,442 39,894,978
Trade receivables, net of allowance for doubtful accounts 4,054,273 5,657,822
Other receivables 862,986 668,748
Prepaid and deposits 1,082,732 729,307
Inventory 3,487,902 2,600,007
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TOTAL CURRENT ASSETS 104,877,864 52,343,847
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FIXED ASSETS 7,250,362 4,173,335
PATENTS AND LICENSES 13,690,556 2,122,367
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$ 125,818,782 $ 58,639,549
=============== ==============
LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 5,335,829 $ 3,110,442
Accrued liabilities 3,297,412 3,622,110
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TOTAL CURRENT LIABILITIES 8,633,241 6,732,552
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MANDATORILY REDEEMABLE CONVERTIBLE PREFERRED SHARES 29,492,801 27,555,652
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SHAREHOLDERS' EQUITY
Share capital 160,600,547 75,422,070
Other equity 833,761 8,987,328
Cumulative translation adjustment (937,827) (619,911)
Deficit (72,803,741) (59,438,142)
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87,692,740 24,351,345
--------------- --------------
$ 125,818,782 $ 58,639,549
=============== ==============
</TABLE>
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VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30 SIX MONTHS ENDED JUNE 30
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
SALES
Products $ 3,299,410 $ 1,565,679 $ 6,740,877 $ 4,644,775
Services 108,078 359,696 310,666 541,213
------------ ------------ ------------- -------------
3,407,488 1,925,375 7,051,543 5,185,988
------------ ------------ ------------- -------------
COST OF SALES
Products 2,322,050 1,689,535 4,459,946 3,733,447
Services 60,306 223,814 206,791 330,374
------------ ------------ ------------- -------------
2,382,356 1,913,349 4,666,737 4,063,821
------------ ------------ ------------- -------------
GROSS MARGIN 1,025,132 12,026 2,384,806 1,122,167
EXPENSES
Sales, general and administrative 7,299,700 4,567,531 12,799,611 7,731,259
Research and development 2,941,160 2,020,471 4,942,010 3,874,292
------------ ------------ ------------- -------------
10,240,860 6,588,002 17,741,621 11,605,551
------------ ------------ ------------- -------------
LOSS FROM OPERATIONS BEFORE INTEREST (9,215,728) (6,575,976) (15,356,815) (10,483,384)
Interest income 1,568,461 27,574 1,998,014 141,224
Interest and financing expense (2,754) (561,450) (6,798) (1,101,736)
------------ ------------ ------------- -------------
NET LOSS FOR THE PERIOD (7,650,021) (7,109,852) (13,365,599) (11,443,896)
Cumulative preferred dividends and accretion
of discount attributable to preferred stock (969,382) - (1,937,149) -
------------ ------------ ------------- -------------
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (8,619,403) $ (7,109,852) $ (15,302,748) $ (11,443,896)
------------ ------------ ------------- -------------
Weighted average number of common
shares outstanding 14,567,520 9,536,356 13,486,119 9,464,636
------------ ------------- ------------- -------------
BASIC AND FULLY DILUTED LOSS PER SHARE $ (0.59) $ (0.75) $ (1.13) $ (1.21)
------------ ------------- ------------- -------------
</TABLE>
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VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30
2000 1999
------------- -------------
<S> <C> <C>
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Net Loss for the period $ (13,365,599) $ (11,443,896)
Add: Items not involving cash -
Depreciation 1,072,461 763,683
Amortization 648,084 192,447
Non cash financing expense related to warrants granted - 636,602
Foreign exchange (106,689) 52,051
Increase ( decrease ) from changes in -
Trade receivables 1,499,818 (194,155)
Other receivables (71,972) 145,116
Prepaid and deposits (357,551) (442,795)
Inventory (974,841) (258,850)
Other long term assets - (694,617)
Accounts payable 2,161,389 989,307
Accured liabilities (359,292) 59,892
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(9,854,192) (10,195,215)
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INVESTING ACTIVITIES
Purchase of fixed assets (4,196,548) (1,225,602)
Licenses and patents acquired (12,216,273) (340,795)
Purchase of short-term investments (78,738,530) -
Redemption of short-term investments 24,565,066 5,108,254
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(70,586,285)
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FINANCING ACTIVITIES
Common shares issued, net of expenses 78,750,832 1,481,554
Other equity - 11,438
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78,750,832 1,492,992
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EFFECT OF EXCHANGE RATE FLUCTUATIONS ON CASH BALANCES 218,189 (103,210)
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INCREASE (DECREASE) IN CASH DURING THE YEAR (1,471,456) (8,805,433)
CASH, BEGINNING OF PERIOD 2,792,985 6,165,924
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CASH, END OF PERIOD $ 1,321,529 $ (2,639,509)
============= =============
</TABLE>
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VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30
2000 1999
-------------- --------------
<S> <C> <C>
Net loss for the period $ (13,365,599) $ (11,443,896)
Other comprehensive income:
Foreign currency translation adjustments (332,691) (427,098)
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Comprehensive loss for the period $ (13,698,290) $ (11,870,994)
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</TABLE>
VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF DEFICIT
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30
2000 1999
-------------- --------------
<S> <C> <C>
Deficit, beginning of year $ (59,438,142) $ (34,151,257)
Net loss for the period (13,365,599) (11,443,896)
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Deficit, end of the period $ (72,803,741) $ (45,595,153)
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</TABLE>
