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 December
31, 1999 as filed with the British Columbia Securities Commission.
FORM 61
QUARTERLY REPORT
Incorporated as part of: X Schedule A
Schedules B & C
(place X in appropriate category)
ISSUER DETAIL:
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: December 31, 1999
DATE OF REPORT: February 22, 2000
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 2000/02/22
-------------- ------------------ ----------
NAME OF DIRECTOR SIGN (TYPED) DATE SIGNED (YY/MM/DD)
JOHN F. MORGAN /s/ John F. Morgan 2000/02/22
--------------- ------------------ ----------
NAME OF DIRECTOR SIGN (TYPED) DATE SIGNED (YY/MM/DD)
<PAGE>
CRYOPAK INDUSTRIES INC.
CONSOLIDATED INTERIM BALANCE SHEET
AS AT DECEMBER 31, 1999 AND 1998
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Current
Cash $ 17,823 $ 8,371
Accounts receivable 344,143 399,261
Inventory 127,954 35,639
Employee advances 218,000 -
Prepaid expenses 77,840 10,260
------ ------
785,760 573,140
Term deposit - restricted 125,649 119,609
Investments 75 75
Capital assets 505,093 393,989
Advances to related company 21,357 35,394
Intangibles 331,519 386,028
------- -------
$ 1,769,453 $ 1,388,551
============= =============
LIABILITIES
Current
Accounts payable and accrued liabilities $ 399,962 $ 312,241
Current portion of capital lease 81,000 81,000
------ ------
480,962 393,241
Capital lease payable 214,725 259,659
Deferred income taxes 20,467 20,467
------ ------
716,154 673,367
------- -------
SHAREHOLDERS' EQUITY
Share capital 10,954,217 9,110,517
(Deficit) ( 9,900,918) ( 8,395,333)
----------- -----------
1,053,299 715,184
--------- -------
$ 1,769,453 $ 1,388,551
============= =============
</TABLE>
APPROVED BY THE BOARD:
/s/ R. Leigh Jeffs
------------------
Director
/s/ John F. Morgan
------------------
Director
<PAGE>
CRYOPAK INDUSTRIES INC.
CONSOLIDATED INTERIM STATEMENT OF LOSS AND DEFICIT
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Sales $ 1,182,280 $ 899,868
Cost of sales, Schedule 1 515,011 532,591
Gross profit 667,269 367,277
Operating expenses, Schedule 2 1,697,802 931,490
(Loss) for the period ( 1,030,533) ( 564,213)
(Deficit), beginning of period ( 8,806,785) ( 7,831,120)
Dividends paid by issuance of shares ( 63,600) -
(Deficit), end of period $ ( 9,900,918) $ ( 8,395,333)
</TABLE>
<PAGE>
CRYOPAK INDUSTRIES INC.
CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Operating activities
Net (loss) for the period $ ( 1,030,533) $ (564,213)
Adjustment for:
Depreciation and amortization 134,751 113,263
------- -------
( 895,782) ( 450,950)
Changes in non-cash working capital
Accounts receivable 17,089 ( 149,467)
Inventory ( 107,346) 1,118
Employee loans ( 194,000)
Prepaid expenses ( 63,765) 1,936
Accounts payable and accrued liabilities 122,996 ( 220,199)
Note payable - ( 350,000)
Current portion of capital lease obligation ( 3,544) 826
------- ---
Cash used in operating activities ( 1,124,352) ( 1,166,737)
Financing activities
Issue of shares 678,166 1,218,199
Capital lease obligation ( 34,332) ( 60,356)
-------- ---------
Cash provided by financing activities 643,834 1,157,843
Investing activities
Purchase of fixed assets ( 169,469) ( 21,328)
Advances from related company 27,511 35,178
------ ------
Cash used in investing activities ( 141,958) 13,850
Increase (decrease) in cash, end of period ( 622,476) 4,956
Cash (bank indebtedness), beginning of period 765,948 123,026
------- -------
Cash (bank indebtedness), end of period $ 143,472 $ 127,982
============== ============
</TABLE>
<PAGE>
CRYOPAK INDUSTRIES INC.
INTERIM CONSOLIDATED SCHEDULE OF COST OF SALES
FOR THE NINE MONTHS ENDED DECEMBER 31,1999 AND 1998
(Unaudited - Prepared by Management)
Schedule 1
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Purchases $ 381,386 $ 467,399
Brokerage and tariffs 7,520 2,524
Delivery and freight 126,105 62,668
------- ------
Total cost of sales $ 515,011 $ 532,591
=============== ============
</TABLE>
<PAGE>
CRYOPAK INDUSTRIES INC.
INTERIM CONSOLIDATED SCHEDULE OF OPERATING EXPENSES
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(Unaudited - Prepared by Management)
Schedule 2
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Interest and bank charges $ 19,119 $ 37,482
Consulting and management fees 536,249 217,800
Media advertising, marketing and promotion 171,270 124,214
Filing, listings, and transfer agent fees 14,491 36,274
Investor relations 130,536 -
Royalties 45,358 37,906
Amortization 134,751 113,263
Office 120,616 77,143
Professional fees 144,866 40,469
Rent 39,211 40,239
Salaries and benefits 140,446 112,978
Telephone 30,483 27,564
Travel and vehicle 170,406 66,158
------- ------
$ 1,697,802 $ 931,490
================ =============
</TABLE>
<PAGE>
Incorporated as part of: Schedule A
X X Schedules B & C
(place X in appropriate category)
ISSUER DETAIL:
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: December 31, 1999
DATE OF REPORT: February 22, 2000
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 2000/02/22
-------------- ------------------ ----------
NAME OF DIRECTOR SIGN (TYPED) DATE SIGNED (YY/MM/DD)
JOHN F. MORGAN /s/John F. Morgan 2000/02/22
--------------- ------------------ ----------
NAME OF DIRECTOR SIGN (TYPED) DATE SIGNED (YY/MM/DD)
<PAGE>
CRYOPAK INDUSTRIES INC.
SCHEDULE B
FOR THE NINE MONTHS ENDED DECEMBER 31,1999
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 $262,000 in management fees paid to three Directors
pursuant to management contracts. Payments totaling $6,000 were made to one
Director for accounting and advisory services. Consulting fees amount to
$274,249.
2. For the Quarter Ended December 31,1999
-----------------------------------------
a) Securities Issued
Type of security issued: common shares
Type of issue: declaration and issuance of dividends
<TABLE>
<CAPTION>
# of Shares Price Date of Issue Total Type of
----------- ----- ------------- Proceeds Consideration
-------- -------------
<S> <C> <C> <C> <C>
82,667 $0.76935 Nov. 30/99 $ 63,600 Pymnt of
dividends
</TABLE>
b) No Options Granted
3. As at the Quarter Ended December 31, 1999
--------------------------------------------
a) Authorized Capital $ 100,000,000
Shares Issued and Outstanding 18,336,707
Shares Allocated but Unissued 3,000,000
b)
<TABLE>
<CAPTION>
Type of Security # of Shares Conversion/ Expiry Date
---------------- ----------- Exercise Price -----------
--------------
<S> <C> <C> <C>
Options 100,000 $0.40 June 26, 2000
390,000 0.82 August 17, 2000
343,000 0.64 January 7, 2001
160,000 0.82 February 11, 2001
290,000 0.86 April 21, 2001
250,000 0.75 September 3, 2001
40,000 0.75 September 3, 2003
*750,000 0.76 March 19, 2004
</TABLE>
<PAGE>
CRYOPAK INDUSTRIES INC.
SCHEDULE B
FOR THE NINE MONTHS ENDED DECEMBER 31,1999
3. As at the Quarter Ended December 31, 1999 (Cont'd)
-----------------------------------------------------
b)
<TABLE>
<CAPTION>
Type of Security # of Shares Conversion/ Expiry Date
---------------- ----------- Exercise Price -----------
--------------
<S> <C> <C> <C>
Preferred Shares 530 $2.00 May 12, 2000
Warrants 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.
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 NINE MONTHS ENDED DECEMBER 31,1999
The Company is in the business of selling temperature controlling packaging
solutions. The Company developed and holds patents for its cryopak product,
which is compromised of uniform, laminate pouches filled with a clear non-toxic
liquid. When frozen, cryopak is used to provide even distribution of
refrigeration over a large area, and unfrozen to protect products from
accidental freezing.
General Discussion
------------------
Sales in the first nine months of the fiscal year, slowed slightly from the +58%
of the first six months to a still acceptable year over year improvement of +31
%. Year over year improvement was impacted by the delayed introduction of a
major new product by our largest customer Wyeth-Ayerst. At the time of writing
we anticipate that this product will be launched in the fourth quarter with a
major impact on sales being realized in our next fiscal year.
Gross profit for the first nine months is up 81.7% versus the same period last
year confirming our decision to bring our manufacturing under closer control.
This growth in gross margin should be further enhanced with the acquisition of
our contract manufacturer Northland Custom Packaging.
In the past three months, the Company has directed its efforts to:
1. expanding its exposure in the Pharmaceutical industry. Testing
agreements have been successfully put in place with SmithKline Beecham
and Caremark, while two others are pending.
2. continuing to prepare for the retail launch of Cryopak through IIDA.
Four retail sales units (two bags and two boxes) have been developed
and tested in research and are ready for a spring launch.
3. completing the development of it's marketing programs and the on-going
development of its brand.
4. preparing for and searching out the appropriate financing package for
the acquisition of both Northland Ice Gel and Northland Custom
Packaging.
5. continuing to expand its relationship with it's major customer
Wyeth-Ayerst. Cryopak has been approved as a key component in the
packaging of all temperature-sensitive products and will participate
in the launch of Wyeth Ayerst's new vaccine PrevnarTM.
In order to achieve the foregoing, the Company has continued to spend against
its marketing objectives. Spending in the third quarter was down significantly
quarter over quarter (-300%) but up versus the same quarter a year ago (-X75%).
<PAGE>
CRYOPAK INDUSTRIES INC.
SCHEDULE C
FOR THE NINE MONTHS ENDED DECEMBER 31,1999
Investor Relations Activities
-----------------------------
Investor relations continue to be managed internally however, consistent with
our financing needs, several companies are currently being considered.
On Behalf of the Board of Directors
/s/ Harry Bygdnes
-----------------
Harry Bygdnes
President
