MONTREAL, QUEBEC–(Marketwired – May 28, 2014) – Knight Therapeutics Inc. (“Knight”) (TSX:GUD) today reported its financial results for the quarter ended March 31, 2014.

1st Quarter 2014 Highlights

Subsequent to the Quarter

First Quarter 2014 Financial Results Reported in Canadian Dollars

The company's financial statements for the period ended March 31, 2014 have been prepared in accordance with IAS 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (IASB).

The company reported quarterly Revenues of $1,441, a Net Loss of $75,742, $75,449,376 of cash and 22,036,060 common shares outstanding as at March 31, 2014.

“Knight won't rest until it is at least as successful as Paladin. Now that we are well capitalized, we can focus on strategy execution” said Jonathan Ross Goodman, President and CEO of Knight Therapeutics Inc.

Conference Call Notice

Knight will host a conference call to discuss its first quarter results today at 10:00 am ET. Investors and other interested parties may call 877-223-4471 (Operator Assisted Toll-Free) or 647-788-4922 (local or international).

About Knight Therapeutics Inc.

Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and world markets. For more information about Knight Therapeutics Inc., please visit the company's website at www.gud-knight.com or at www.sedar.com.

This press release may contain forward-looking statements and predictions. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the company's final application for listing on the TSX Venture Exchange and in two short form prospectuses which can be found on SEDAR at www.sedar.com, which investors should consult for additional information. The company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events and except as required by law.

Neither TSX nor its Regulation Services Providers (as that term is defined in policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

Knight Therapeutics Inc.

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
As at
[In Canadian dollars]
[unaudited]
March 31, 2014 December 31, 2013
$ $
ASSETS
Current assets
Cash 75,449,376 1
Interest and royalties receivable 42,425
Other current assets 52,711
Total current assets 75,544,512 1
Property and equipment 35,489
Intangible assets 902,671
Intangible asset held for sale 10,000,000
Total assets 86,482,672 1
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accruals 471,134
Interest payable to related party 18,699
Loan payable to related party 2,500,000
Total current liabilities 2,989,833
Shareholders' equity
Share capital 11,909,001 1
Warrants 71,167,703
Contributed Surplus 491,877
Deficit (75,742 )
Total shareholders' equity 83,492,839 1
Total liabilities and shareholders' equity 86,482,672 1
INTERIM CONDENSED CONSOLIDATED STATEMENT OF LOSS AND COMPREHENSIVE LOSS
For the three months ended March 31, 2014
[In Canadian dollars except for share and per share amounts]
[unaudited]
$
REVENUE
Royalty income 1,441
EXPENSES
General and administrative 77,272
Research and development 15,037
Loss before depreciation, amortization and interest (90,868 )
Depreciation of property and equipment 493
Amortization of intangible assets 6,324
Interest expense 19,040
Interest income (40,983 )
Loss before income tax (75,742 )
Provision for income taxes
Net loss and comprehensive loss for the period (75,742 )
Basic and diluted net loss per share (0.01 )
Weighted average number of common shares outstanding 8,079,889
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
For the three months ended March 31, 2014
[In Canadian dollars]
[unaudited]
Share
capital
Warrants Contributed Surplus Deficit Total Shareholders' Equity
$ $ $ $ $
Balance on Incorporation and as at January 1, 2014 1 1
Net loss and comprehensive loss for the period (75,742 ) (75,742 )
Issuance of common shares as part of Business Separation Agreement 11,909,000 11,909,000
Issuance of warrants, net of costs 71,617,703 491,877 72,109,580
Warrant purchase loans (450,000 ) (450,000 )
Balance as at March 31, 2014 11,909,001 71,167,703 491,877 (75,742 ) 83,492,839
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the three months ended March 31, 2014
[In Canadian dollars]
[unaudited]
$
OPERATING ACTIVITIES
Net loss (75,742 )
Depreciation of property and equipment 493
Amortization of intangible assets 6,324
Changes in non-cash working capital related to operations 43,157
Cash outflow from operating activities (25,768 )
INVESTING ACTIVITIES
Purchase of property and equipment (35,982 )
Cash outflow from investing activities (35,982 )
FINANCING ACTIVITIES
Net impact of Business Separation Agreement 1,000,000
Net proceeds from warrants issuance 72,461,125
Warrant purchase loans (450,000 )
Loan from related party 2,500,000
Cash inflow from financing activities 75,511,125
Increase in cash during the period 75,449,375
Cash, beginning of period 1
Cash, end of period 75,449,376

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