April 13, 2009 / 9:35 PM / 9 years ago

Lorus doesn't have cash to meet debt obligation

CALGARY, Alberta, April 13 (Reuters) - Lorus Therapeutics Inc LOR.TO does not have the cash it needs to meet a debt obligation due in October, the Canadian biotech company said on Monday as it reported a third-quarter loss.

Lorus, which develops cancer treatments, said it believes it has enough cash and equivalents to cover its current spending plans, but is weighing its options for meeting the October debt deadline.

At the end of February, the company had C$7.3 million ($6 million) on hand, compared with C$9.4 million at the end of May 2008.

In the third quarter ended Feb 28, Lorus lost C$2.5 million, or 1 Canadian cent a share, compared to a year-earlier loss of C$3.8 million, or 2 Canadian cents a share.

It cited reduced research and development spending of C$1.2 million for the smaller loss.

Lorus shares closed down 1 Canadian cent, or 25 percent, at 5 Canadian cents, on the Toronto Stock Exchange. That represents a drop of 71 percent in the past year.

$1=$1.22 Canadian Reporting by Jeffrey Jones; editing by Janet Guttsman

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