An anonymous director reports

HELIX BIOPHARMA CORP. ANNOUNCES FISCAL FIRST QUARTER 2019 RESULTS

Helix BioPharma Corp. has released its financial results for the first quarter of fiscal 2019 ended Oct. 31, 2018.

Financial review

The company recorded a net loss and total comprehensive loss of $1,379,000 (one-cent loss per common share) and $2,303,000 (two-cent loss per common share) for the three-month periods ended Oct. 31, 2018, and 2017, respectively. Due to Helix's cash constraints, the company has pro-actively had to manage its limited cash resources, which has resulted in an overall reduction in spending and, in turn, delays to its clinical development programs.

Research and development

Research and development costs for the three-month periods ended Oct. 31, 2018, and 2017, totalled $1,014,000 and $1,764,000, respectively.

L-DOS47 research and development expenses for the three-month periods ended Oct. 31, 2018, and 2017, totalled $861,000 and $1,482,000, respectively. L-DOS47 research and development expenditures relate primarily to the company's LDOS002 European phase 1/2 clinical study in Poland and the LDOS001 U.S. phase 1 clinical study in the United States in addition to some preliminary expenditures related to the company's LDOS003 phase 2 clinical study in Poland and Ukraine. The lower LDOS47 spending is mainly the result of the winding down of the company's LDOS002 European phase 1/2 clinical study in Poland. Given the limited cash resources, the company had slowed down the previously committed LDOS003 clinical trial. The company has recently advanced the funds to the CRO for the commencement of enrolment, which is now under way. The company continues to be committed to the LDOS001 study and has reallocated resources to improve patient enrolment. The company has begun early development of a phase 1/2 study, L-DOS47 given in combination with doxorubicin, for the treatment of metastatic pancreatic cancer. An initial draft study protocol was circulated in July, 2018, and continuing development continues.

V-DOS47 research and development expenses for the three-month periods ended Oct. 31, 2018, and 2017, totalled $130,000 and $113,000, respectively. The company's wholly owned subsidiary in Poland has a grant funding agreement with the Polish National Centre for Research and Development (PNCRD) for research and development expenditures associated with V-DOS47. The company's subsidiary received $135,000 and $83,000 in the three-month periods ended Oct. 31, 2018, and 2017, respectively, from the PNCRD. The company is looking at the possibility of selling its Polish subsidiary to raise capital to finance its L-DOS47 program and deal with its working capital deficiency.

Trademark and patent-related expenses for the three-month periods ended Oct. 31, 2018, and 2017, totalled $25,000 and $99,000, respectively. The company previously had committed spend to adequately protect the company's intellectual property.

Operating, general and administration

Operating, general and administration expenses for the three-month periods ended Oct. 31, 2018, and 2017, totalled $373,000 and $526,000, respectively. The decrease in operating, general and administration expenses mainly reflects continuing cost-cutting initiatives.

Liquidity and capital resources

The company reported a consolidated net loss and total comprehensive loss of $1,379,000 for the three-month period ended Oct. 31, 2018 (Oct. 31, 2017: $2,303,000). As at Oct. 31, 2018, the company had a working capital deficiency of $1,997,000, shareholders' deficiency of $1,651,000 and a deficit of $165,384,000. As at July 31, 2018, the company had a working capital deficiency of $1,901,000, shareholders' deficiency of $1,527,000 and a deficit of $164,005,000.

The company continues to work with vendors to manage its cash position while ensuring vendors continue providing services while being paid, albeit over a longer period of time than previously agreed terms. The company has raised gross proceeds of approximately $8,518,000 from private placement financings during fiscal 2018, and an additional $1,616,000 in the current quarter, the company's cash reserves of $871,000 as at Oct. 31, 2018, in addition to the subsequent private placements the company closed on Oct. 30, 2018, for gross proceeds of approximately $871,000 are insufficient to meet anticipated cash needs for working capital and capital expenditures through the next 12 months, nor are they sufficient to see the current or any planned research and development initiatives through to completion. Though the funds raised have somewhat assisted the company in dealing with its working capital deficiency and attempts to make vendors current, additional funds are required to advance the various clinical and preclinical programs, and pay for the company's overhead costs and its past due vendors. To the extent that the company does not believe it has sufficient liquidity to meet its current obligations, management considers securing additional funds, primarily through the issuance of equity securities of the company, to be critical for its development needs. The company is looking at the possibility of selling its Polish subsidiary to raise capital to finance its L-DOS47 program and deal with its working capital deficiency.

The company's consolidated statement of net loss and comprehensive loss for the three-month periods ended Oct. 31, 2018, and 2017, is summarized in the attached table.

        CONSOLIDATED STATEMENTS OF NET (LOSS) AND 
                   COMPREHENSIVE (LOSS)
        (thousands $, except for per-share data)                                             
                                                     
                                   For the three months ended
                                        Oct. 31,      Oct. 31,
                                           2018          2017
Expenses
Research and development                 $1,014        $1,764
Operating, general and administration       373           526
Results from operating activities
before finance items                     (1,387)       (2,290)
Finance items                                 8           (13)
(Loss) and total comprehensive (loss)    (1,379)       (2,303)
(Loss) per share                          (0.01)        (0.02)

The company's condensed unaudited interim consolidated financial statements and management's discussion and analysis will be filed under the company's profile on SEDAR, as well as on the company's website.

About Helix BioPharma Corp.

Helix BioPharma is an immuno-oncology company, specializing in the field of cancer therapy. The company is actively developing innovative products for the prevention and treatment of cancer based on its proprietary technologies. Helix's product development initiatives include its novel L-DOS47 new drug candidate.

We seek Safe Harbor.