SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
CRYOPAK INDUSTRIES INC.
-----------------------
(Registrant's Name)
1120-625 Howe Street, Vancouver, B.C. Canada V6C 2T6
----------------------------------------------------
(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 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
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
Description of document filed:
The attached is a Form 61 Quarterly Report for the quarter ended June 30,
1999 as filed with the British Columbia Securities Commission.
FORM 61
QUARTERLY REPORT
Incorporated as part of: [ ] Schedule A
[X][X] Schedules B & C
(place X in appropriate category)
ISSUER DETAILS:
NAME OF ISSUER: CRYOPAK INDUSTRIES INC.
ISSUER ADDRESS: Suite 1120, 625 Howe Street
Vancouver, British Columbia
V6C 2T6
CONTACT PERSON: Laila Yee
CONTACT'S POSITION: Office Manager
CONTACT TELEPHONE NUMBER: (604) 685-3616
FOR QUARTER ENDED: June 30, 1999
DATE OF REPORT: August 26, 1999
CERTIFICATE
THE SCHEDULES REQUIRED TO COMPLETE THIS QUARTERLY REPORT ARE ATTACHED AND THE
DISCLOSURE CONTAINED THEREIN HAS BEEN APPROVED BY THE BOARD OF DIRECTORS. A COPY
OF ITS QUARTERLY REPORT WILL BE PROVIDED TO ANY SHAREHOLDER WHO REQUESTS IT.
PLEASE NOTE THIS FORM IS INCORPORATED AS PART OF BOTH THE REQUIRED FILING OF
SCHEDULE "A" AND SCHEDULES "B" AND "C".
R. LEIGH JEFFS /s/ R. LEIGH JEFFS 99/08/26
-------------- ------------------ --------
NAME OF DIRECTOR SIGN (TYPED) DATE SIGNED(YY/MM/DD)
DOUGLAS R. REID /s/ DOUGLAS R. REID 99/08/26
--------------- ------------------- --------
NAME OF DIRECTOR SIGN (TYPE DATE SIGNED(YY/MM/DD)
<PAGE>
CRYOPAK INDUSTRIES INC.
CONSOLIDATED INTERIM BALANCE SHEET
AS AT JUNE 30,1999 AND 1998
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
ASSETS
Current
Cash $ 184,378 $ 47,305
Accounts receivable 511,501 226,640
Inventory 40,364 55,977
Prepaid expenses 195,670 13,661
931,913 343,583
Term deposit - restricted 125,649 119,609
Investments 75 25,442
Capital assets 484,387 395,947
Advances to related company 39,976 67,795
Intangibles 358,767 412,978
$ 1,940,767 $ 1,365,354
LIABILITIES
Current
Accounts payable and accrued liabilities $ 248,698 $ 34,493
Current portion of capital lease 81,000 81,000
329,698 475,494
Capital lease payable 230,999 298,470
Deferred income taxes 20,467 20,467
581,164 794,431
SHAREHOLDERS' EQUITY
Share capital 10,538,617 8,642,317
(Deficit) (9,179,014) (8,071,394)
1,359,603 570,923
$ 1,940,767 $ 1,365,354
</TABLE>
APPROVED BY THE BOARD:
/s/ R/ Leigh Jeffs
------------------
Director
/s/ Douglas R. Reid
-------------------
Director
<PAGE>
CRYOPAK INDUSTRIES INC.
CONSOLIDATED INTERIM STATEMENT OF LOSS AND DEFICIT
FOR THE THREE MONTHS ENDED JUNE 30,1999 AND 1998
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Sales $ 317,179 $ 217,921
Cost of sales, Schedule 1 177,276 138,465
Gross profit 139,903 79,456
Operating expenses, Schedule 2 398,460 259,480
(Loss) from operations (258,557) (180,024)
Other (income) expenses
Filing, listings, and transfer agent fees 5,125 4,446
Investor relations 55,398 7,500
Royalties 13,280 10,668
Amortization 39,869 37,637
113,672 60,251
(Loss) for the period (372,229) (240,275)
(Deficit), beginning of period (8,806,785) (7,831,120)
(Deficit), end of period $ (9,179,014) $ (8,071,395)
</TABLE>
<PAGE>
CRYOPAK INDUSTRIES INC.
CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION
FOR THE THREE MONTHS ENDED JUNE 30,1999 AND 1998
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Operating activities
Net (loss) for the period $ (372,229) $ (240,274)
Adjustment for:
Depreciation and amortization 39,869 37,636
(332,360) (202,638)
Changes in non-cash working capital
Accounts receivable (126,270) 23,154
Inventory (19,756) (19,220)
Prepaid expenses (181,596) (1,465)
Accounts payable and accrued liabilities (28,269) (137,947)
Note payable - (350,000)
Current portion of capital lease obligation (3,544) 826
Cash used in operating activities (691,795) (687,290)
Financing activities
Issue of shares 326,167 749,999
Capital lease obligation (18,058) (21,545)
Cash provided by financing activities 308,109 728,454
Investing activities
Purchase of fixed assets (81,129) (52)
Advances from related company 8,893 2,777
Cash used in investing activities (72,236) 2,725
Increase (decrease) in cash, end of period (455,922) 43,889
Cash (bank indebtedness), beginning of period 765,948 123,026
Cash (bank indebtedness), end of period $ 310,026 $ 166,915
</TABLE>
<PAGE>
CRYOPAK INDUSTRIES INC.
INTERIM CONSOLR)ATED SCHEDULE OF COST OF SALES
FOR THET1IREE MONTHS ENDED JUNE 30,1999 AND 1998
(Unaudited - Prepared by Management)
Schedule 1
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Purchases $ 142,668 $ 115,884
Brokerage and tarriffs 1,375 1,207
Delivery and freight 33,233 21,374
Total cost of sales $ 177,276 $ 138,465
</TABLE>
<PAGE>
CRYOPAK INDUSTRIES INC.
INTERIM CONSOLIDATED SCHEDULE OF OPERATING EXPENSES
FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited - Prepared by Management)
Schedule 2
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Interest and bank charges $ 4,994 $ 10,604
Consulting and management fees 127,308 78,800
Media advertising, marketing and promotion 77,135 31,345
Office 31,607 31,813
Professional fees 30,333 9,816
Rent 13,239 13,413
Salaries and benefits 40,602 40,815
Telephone 9,941 10,984
Travel and vehicle 63,301 31,890
$ 398,460 $ 259,480
</TABLE>
<PAGE>
FORM 61
QUARTERLY REPORT
Incorporated as part of: [ ] Schedule A
[X][X] Schedules B & C
(place X in appropriate category)
ISSUER DETAILS:
NAME OF ISSUER: CRYOPAK INDUSTRIES INC.
ISSUER ADDRESS: Suite 1120, 625 Howe Street
Vancouver, British Columbia
V6C 2T6
CONTACT PERSON: Laila Yee
CONTACT'S POSITION: Office Manager
CONTACT TELEPHONE NUMBER: (604) 685-3616
FOR QUARTER ENDED: June 30, 1999
DATE OF REPORT: August 26, 1999
CERTIFICATE
THE SCHEDULES REQUIRED TO COMPLETE THIS QUARTERLY REPORT ARE ATTACHED AND THE
DISCLOSURE CONTAINED THEREIN HAS BEEN APPROVED BY THE BOARD OF DIRECTORS. A COPY
OF ITS QUARTERLY REPORT WILL BE PROVIDED TO ANY SHAREHOLDER WHO REQUESTS IT.
PLEASE NOTE THIS FORM IS INCORPORATED AS PART OF BOTH THE REQUIRED FILING OF
SCHEDULE "A" AND SCHEDULES "B" AND "C".
R. LEIGH JEFFS /s/R. Leigh Jeffs 99/08/26
-------------- ----------------- --------
NAME OF DIRECTOR SIGN (TYPED) DATE SIGNED (YY/MM/DD)
DOUGLAS R. REID /s/Douglas R. Reid 99/08/26
--------------- ------------------ --------
NAME OF DIRECTOR SIGN (TYPED) DATE SIGNED (YY/MM/DD)
<PAGE>
CRYOPAK INDUSTRIES INC.
SCHEDULE B
FOR THE THREE MONTHS ENDED JUNE 30,1999
1. For the Current Fiscal Year-to-Date
The aggregate amount of expenditures made to parties not at arm's length
from the issuer is $87,000 in management fees paid to three Directors. The
payments were made pursuant to management contracts.
Consulting fees amount to $40,308.
2. For the Quarter Ended June 30, 1999
a) Securities Issued
Type of security issued: common shares
Type of issue: exercise of options
<TABLE>
<CAPTION>
# of Shares Price Price Date of Issue Total Proceeds Type of Consideration
----------------- ----- ------------- -------------- ---------------------
<S> <C> <C> <C> <C>
100,000 $ 0.50 Apr. 20/99 $ 50,000 Cash
36,300 0.82 Apr. 20/99 29,766 Cash
30,000 0.50 Apr. 29/99 15,000 Cash
50,000 0.50 Apr. 29/99 25,000 Cash
5,000 0.52 May 6/99 2,600 Cash
7,000 0.52 May 20/99 3,640 Cash
70,000 0.50 May 25/99 35,000 Cash
50,000 0.50 June 8/99 10,000 Cash
230,000 0.52 June 8/99 4,160 Cash
</TABLE>
Type of security issued: common shares
Type of issue: private placement
<TABLE>
<CAPTION>
# of Shares Price Date of Issue Total Proceeds Type of Consideration
----------- ----- ------------- -------------- ---------------------
<S> <C> <C>
125,000 $ 0.776 Apr. 16/99$ 97,000 Cash
72,000 $ 0.75 Apr. 23/99$ 54,000 Cash
150,000 $ 1.00 June 30/99 150,000 Cash
</TABLE>
b) Options Granted
<TABLE>
<CAPTION>
Optionee # of Shares Exercise Price Expiry Date Date of Grant
-------- ----------- -------------- ----------- -------------
<S> <C> <C> <C> <C>
Harry Bygdnes 115,000 $ 0.86 April 21, 2001 April 21, 1999
Leigh Jeffs 115,000 0.86 April 21, 2001 April 21, 1999
Harley Sinclair 40,000 0.86 April 21, 2001 April 21, 1999
Ross Morrison 100,000 0.86 April 21, 2001 April 21, 1999
</TABLE>
<PAGE>
3. As at the Quarter Ended June 30, 1999
a) Authorized Capital $100,000,000
Shares Issued and Outstanding 17,929,040
Shares Allocated but Unissued 3,000,000
b)
<TABLE>
<CAPTION>
Type of Security # of Shares Conversion/Exercise Price Expiry Date
---------------- ----------- ------------------------- -----------
<S> <C> <C> <C>
Options 150,000 $0.50 September 2, 1999
100,000 0.40 June 26, 2000
390,000 0.82 August 17, 2000
343,000 0.64 January 7, 2001
200,000 0.82 February 11, 2001
290,000 0.86 April 21, 2001
*750,000 0.76 March 19, 2004
Preferred Shares 530 $2.50 May 12, 2000
Warrants 250,000 $0.60 August 18, 1999
125,000 0.776 September 20, 1999
119,608 0.46 March 20, 2000
250,000 0.46 April 29, 2000
225,000 0.46 May 13, 2000
135,000 0.46 May 29, 2000
265,000 0.46 June 3, 2000
125,000 0.46 June 17, 2000
72,000 1.00 April 23, 2001
150,000 1.15 June 21, 2001
</TABLE>
* These options will vest at a rate of 50,000 at the end of each calendar
quarter commencing March 31, 1999 and are subject to shareholder approval.
c) Shares in escrow
350,000
d) List of Directors
Harry Bydgnes
R. Leigh Jeffs
Douglas R. Reid
John McEwen
John F. Morgan
Ross Morrison
<PAGE>
CRYOPAK INDUSTRIES INC.
SCHEDULE C
FOR THE THREE MONTHS ENDED JUNE 30, 1999
The Company is in the business of selling refrigerant packaging solutions. The
Company developed and holds patents for its Cryomat product, which is comprised
of uniform, laminate pouches filled with a clear non-toxic liquid. When frozen,
Cryomat is used to provide even distribution of refrigeration over a large area.
General Discussion
------------------
Sales during the period have increased by approximately 45% with gross profits
increasing by approximately 76%. Operating expenses were somewhat higher due to
an increase in advertising and promotion, marketing, travel, and hiring of
additional personnel. The purchase orders on hand clearly justify these
increases.
The Company anticipates a significant increase in sales during the next quarters
as orders are filled in both the pharmaceutical and airline business sectors.
The Company has arranged and completed several private placements. The proceeds
from these financing activities have been used for working capital.
The Company is aware of the Year 2000 issues and has been taking the necessary
actions to ensure a smooth transition into the new millennium. The majority of
the office equipment, including computer hardware and software, are either Y2K
compliant or have been replaced or modified. Currently, the Company is
approximately 90% Y2K compliant. The Company estimates that all issues will be
resolved by September 1999.
Investor Relations Activities
-----------------------------
The Company is currently using European Investor Services Ltd. to handle
European investor relations and CCRI for investor relations activities in the
United States. The Company's investor relations is otherwise handled internally.
CRYOPAK INDUSTRIES INC.
/s/ R/ Leigh Jeffs
------------------
R. Leigh Jeffs
Director
