AUSTRALIAN Securities Exchange (ASX) listed pharmacy software provider, Corum Group, is expecting its costs to be "significantly reduced going forward" following the completion of its acquisition of PharmX.
In its quarterly activity report for the three months to 31 Dec 2020, Corum noted it raised $3.3 million through a strategic placement of 60 million new shares with Arrotex Pharmaceuticals, with funds from the placement to be used to accelerate key product development and business expansion (PD 06 Nov 2020).
The company reported that a final settlement of $4.3 million was made for the remaining interest in PharmX during the quarter (PD 01 Sep 2020).
Corum also paid $800,000 in Nov 2020, to BAMM Group Administration Pty Ltd, as consideration for the development work completed to date, associated intellectual property and other commercial rights relating to a cloud-based pharmacy Head Office software solution the companies had agreed to develop (PD 02 Nov 2020).
Under the terms of the deal Corum will make three further payments of $400,000 to BAMM over the next three years, while the 63,642,138 full paid ordinary shares that were to be issued to BAMM following the adoption of a resolution at the company's 2019 annual general meeting, will not be issued.
Corum recorded a positive operating cashflow of $536,000 for the quarter.
"This included non-recurring operational legal costs of approximately $300,000 related to the PharmX acquisition and the BAMM Agreement," the company said.
"Corum expects that these costs will be significantly reduced going forward.
"Corum ended the quarter with a cash balance of $7.62 million."
The company also reported that a total of $166,000 was paid in fees and salaries to Directors, key management personnel and their related entities during the quarter.
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