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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
FILING NO. 4 FOR THE MONTH OF APRIL, 1999
VISIBLE GENETICS INC.
(Exact name of Registrant)
700 BAY STREET, SUITE 1000, TORONTO ON, CANADA M5G 1Z6
(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 the 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
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VISIBLE GENETICS INC.
On April 30, 1999, Visible Genetics Inc. (the "Company") announced its
financial results for the first quarter ended March 31, 1999.
The Company reported sales of $4.5 million for the quarter ended March
31, 1999, an increase of 326% from the same period in 1998. The net loss for the
quarter was $3.3 million, or $0.35 per share, compared to $3.0 million, or $0.41
per share, for the same period in 1998. The increase in the net loss reflects
research and development expense for the Company's GeneKits and the costs of
developing an international market presence.
The Company's financial results for the quarter ended March 31, 1999
are filed as an exhibit to this report.
The Company hereby incorporates by reference the text of this Form 6-K
(including the Exhibits hereto) into the Company's Registration Statements on
Form F-3 (File Nos. 333-67607 and 333-68939).
Exhibit 1. First Quarter Financial Results
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
VISIBLE GENETICS INC.
Date: April 30, 1999 By: /s/ Jeffrey D. Sherman
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Name: Jeffrey D. Sherman
Title: Vice President, Finance and
C.F.O.
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VISIBLE GENETICS INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED, UNITED STATES DOLLARS)
March 31 December 31
1999 1998
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ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 4,282,553 $ 6,165,924
Short-term investments 3,093,982 5,108,254
Trade receivables 6,708,009 4,770,796
Other receivables 1,088,731 1,445,820
Prepaid and deposits 299,709 233,072
Inventory 3,530,281 3,912,336
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TOTAL CURRENT ASSETS 19,003,265 21,636,202
FIXED ASSETS 4,136,769 3,877,163
PATENTS AND LICENCES 2,577,923 2,269,170
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$ 25,717,957 $ 27,782,535
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LIABILITIES
CURRENT LIABILITIES
Notes payable $ 7,869,967 $ 7,494,877
Accounts payable 3,317,807 3,985,103
Accrued liabilities 2,145,666 1,723,840
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TOTAL CURRENT LIABILITIES 13,333,440 13,203,820
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SHAREHOLDERS' EQUITY
Share capital 47,820,045 46,412,685
Other equity 2,119,806 2,232,465
Cumulative translation adjustment (110,706) 84,822
Deficit (37,444,628) (34,151,257)
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12,384,517 14,578,715
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$ 25,717,957 $ 27,782,535
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VISIBLE GENETICS INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED, UNITED STATES DOLLARS)
Three Months Ended March 31
1999 1998
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SALES $ 4,516,096 $ 1,059,719
Cost of sales 2,365,282 809,771
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GROSS MARGIN 2,150,814 249,948
EXPENSES
Sales, general and administrative 3,163,728 2,188,259
Research and development 1,853,821 1,146,279
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5,017,549 3,334,538
Loss from operations before interest (2,866,735) (3,084,590)
Interest income 113,650 82,071
Interest and financing expense 540,286 1,574
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NET LOSS FOR THE PERIOD $(3,293,371) $(3,004,093)
Weighted average number of common
Shares outstanding 9,410,845 7,261,097
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BASIC AND FULLY DILUTED LOSS PER SHARE $ (0.35) $ (0.41)
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VISIBLE GENETICS INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED, UNITED STATES DOLLARS)
Three Months Ended March 31
1999 1998
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CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Net Loss for the period $ (3,293,371) $ (3,004,093)
Add: Items not involving cash -
Depreciation 370,333 196,412
Amortization 66,831 43,876
Deferred compensation cost related to options granted - 19,435
Non cash financing expense related to warrants granted 375,090
Foreign exchange - (16,667)
Increase ( decrease ) from changes in -
Trade receivables (1,937,213) 241,285
Other receivables 357,089 (58,955)
Prepaid and deposits (66,637) (63,720)
Inventory 382,055 (638,070)
Refundable income taxes - -
Accounts payable (667,296) 601,735
Accrued liabilities 421,826 (4,473)
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(3,991,293) (2,683,235)
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FINANCING ACTIVITIES
Common shares issued, net of expenses 1,407,360 23,783
Other equity issuances (308,187) 1,841
Short term borrowings - 778,947
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1,099,173 804,571
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INVESTING ACTIVITIES
Marketable securities 2,014,272 3,997,728
Fixed assets (629,839) (855,815)
Intangible assets (375,684) (81,032)
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1,008,749 3,060,881
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INCREASE (DECREASE) IN CASH DURING THE PERIOD (1,883,371) 1,182,217
CASH, BEGINNING OF PERIOD 6,165,924 1,866,679
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CASH, END OF PERIOD $ 4,282,553 $ 3,048,896
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