Critical Outcome Technologies Reports Third Quarter Results

LONDON, ONTARIO--(Marketwired - March 14, 2014) - Critical Outcome Technologies Inc. (TSX VENTURE:COT) ("COTI" or the "Company"), the bioinformatics and accelerated drug discovery company, reported its financial and operating results today for the three and nine month periods ended January 31, 2014.

During the third quarter, the Company continued to receive positive results from experiments conducted with the Company's lead cancer drug candidate, COTI‐2, in support of the 28-day two-species toxicity testing (contract signed February 11, 2014) and its investigational new drug filing with the U.S. Food and Drug Administration (FDA) planned for later in the calendar year. Repeat studies were also carried out at the M.D. Anderson Cancer Center concerning the impact of COTI-2 on various p53 mutations in support of their upcoming final report and the preparation of a joint scientific journal publication. The Company's efforts in licensing and financing during the quarter led to several announcements after the quarter-end.

"With the financing announced in early February, we have moved ahead with our two-species 28-day toxicity testing contract," said Dr. Wayne Danter, President and CEO. "This testing is the final toxicity testing required before we can prepare our investigational new drug filing with the FDA and will determine the safe starting dosage for COTI-2 in human trials."

"We are pleased that our efforts in the third quarter resulted in the receipt of a letter of intent to form a joint venture to fund the continued development of COTI-2 with considerable expertise and resources from our joint venture partner," continued Dr. Danter. "After a period of due diligence, we were able to announce this opportunity in late February and look forward to completing definitive agreements in the fourth quarter."

Financial Results

The Company had a net loss of $671,386, or $0.01 per share, for the quarter compared to a net loss of $696,785, or $0.01 per share, for the third quarter a year earlier. For the nine months ended January 31, 2014, the Company reported a loss of $1,769,658, or $0.02 per common share, compared to a loss of $2,182,223, or $0.03 per common share, for the same period last year. The expense reduction for the quarter and the year-to-date were attributable to expense reductions of $25,399 and $412,565 respectively in the Company's three functional expense areas.