Dr. Robert Gundel reports

AMORFIX ANNOUNCES FINANCIAL RESULTS FOR FIRST QUARTER 2015

Amorfix Life Sciences Ltd. has released its operational and financial results for the three months ended March 31, 2015.

Recent developments

On March 16, 2015, the company announced that its board of directors has formally authorized the company to review all strategic alternatives available to it. The company's management has been charged, among other things, with the responsibility for exploring alternative ways to maximize shareholder value, including transactions involving the sale of all or part of the assets of the company. The company had numerous discussions with potential investors in recent months, many of whom ultimately declined to invest based on a variety of factors, citing a reluctance to invest in a public biotechnology company at an early stage of the company's progress toward clinical trials, among other reasons. The board of directors is and will consider any and all strategic proposals, including proposals that would transfer the company's assets into a privately held entity in such a manner that would provide the company and its shareholders with a continuing equity stake in the private entity's business, although the board of directors has not ruled out any strategic alternatives at this stage.

On April 23, 2015, the company announced it had arranged a secured bridge loan in the amount of $40,000 (U.S.) with four directors of the corporation. The bridge loan will serve as interim financing to support the working capital requirements of the corporation. The bridge loan will accrue interest at 2 per cent per year and will be secured by the assets of the corporation. The accrued interest and the principal amount will become due at the end of the term, which will end on the earlier of three months from closing and the date by which the corporation has raised, cumulatively, equity capital of at least $1.2-million (U.S.). The corporation may prepay the bridge loan at any time without any penalty.

Results of operations -- three months ended March 31, 2015, and 2014

The net loss for the three months ended March 31, 2015, was $428,005 compared with a net loss of $750,837 for the three months ended March 31, 2014. The decreased net loss in the current period results mainly from lower stock option compensation and lower research costs for its Alzheimer's disease diagnostic program.

For the three months ended March 31, 2015, contract research revenue was nil compared with $8,354 in the comparable period. Sales and service revenue were $11,400 in the current period as compared with $43,512 in the comparable period.

Research and development expenses for the three months ended March 31, 2015, were $232,360 as compared with $343,143 in the three months ended March 31, 2014. The decrease in expenditures in the current period related mostly to lower salary and stock option compensation.

General and administrative expenses for the three months ended March 31, 2015, were $97,045 as compared with $459,560 in the three months ended March 31, 2014. The decrease in expenditures in the current period resulted mainly from lower stock option compensation and lower investor relations activities.

The company incurred a loss of $428,005 for the three-month periods ended March 31, 2015, and has a deficit of $36,854,349 as at March 31, 2015, and as at March 31, 2015, had working capital deficiency of $708,059. At present, the company's cash resources are expected to be fully depleted imminently. These circumstances may cast significant doubt as to the ability of the company to continue as a going concern. The company is actively pursuing financing and strategic alternatives to further develop certain of the company's scientific initiatives, but there is no assurance that these initiatives will be successful, timely or sufficient. In addition, the company is considering other strategic initiatives to maximize long-term value including selling all or a portion of the company's assets or proposals that would transfer the company's assets into a privately held entity in such a manner that would provide the company and its shareholders with a continuing equity stake in the private entity's business.

Outlook

The company intends to continue to maintain its core neurodegenerative disease assets for ALS and Alzheimer's disease until one or more strategic transactions are consummated. For ALS, these assets include therapeutic antibodies that block misfolded SOD1 and a simple blood test diagnostic for early detection of the disease. For Alzheimer's disease, the company has developed a best-in-class diagnostic that can accurately identify patients with early-stage disease. No time table has been set for the company's process for reviewing strategic alternatives. No decision has been made to enter into any transaction at this time, and there can be no assurance that the company will enter into such a transaction in the future. Such a transaction, if one were to occur, could require formal shareholder approval, in which case detailed proxy or other solicitation material would be made available to shareholders. There is no assurance that this strategic alternatives review will result in Amorfix changing its current business plan, pursuing a particular transaction, or completing any such transaction. The company currently intends to retain its listing as a public company on the Toronto Stock Exchange unless a so-called going-private transaction is consummated. There can be no assurance that any such transaction will be consummated.

Additional information about the company, including the MD&A and financial results may be found on SEDAR.

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