COT Cotinga Pharmaceuticals Inc

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.


Research and development expenditures decreased $17,872 for the quarter and
$267,260 year-to-date primarily reflecting a decrease in the contract testing
related to COTI-2 compared to the first nine months in fiscal 2013. General and
administration expenditures increased $46,476 in the quarter and decreased
$73,593 year-to-date related to an increase in professional fees, lower salaries
and benefits due to a staffing reduction, and a decrease in share-based
compensation. Sales and marketing expenditures decreased $65,158 in the quarter
and $152,902 year-to-date resulting from lower salaries and benefits and a
reduction in consulting expense. A decline in other income sources of $4,362
during the quarter and $52,315 year-to-date offset some of the expenditure cost
savings and related primarily to a decrease in investment tax credits (ITC)
calculated on the overall lower level of R&D contract expenses year-to-date
compared to the prior year period and reductions to the amount of such expenses
eligible for ITCs as set out in the federal budget of March 2012.


Financing

Efforts at identifying additional sources of financing during the third quarter,
culminated in the closing of a non-brokered private placement of equity of
$100,000, and of a non-convertible debenture of $400,000, for total gross
proceeds of $500,000 following the quarter end. The Company continues to seek
additional financing to support the development of its lead asset COTI-2 to a
licensing agreement and fund its other activities, and in this regard, also
announced following the quarter end, the engagement of a U.S. investment bank,
Maxim Capital LLC. Maxim will act as a strategic advisor to the Company and will
also act as the Company's exclusive placement agent for a best efforts private
placement of securities of the Company to U.S. based accredited investors. 


More detailed operating and financial results can be found in the Company's
Unaudited Condensed Interim Financial Statements and Management Discussion and
Analysis for the quarter ended January 31, 2014, which can be found on SEDAR at
www.sedar.com. This material is also available on the Company's website at
www.criticaloutcome.com.


About Critical Outcome Technologies Inc. (COTI) 

COTI is a leading-edge technology company specializing in accelerating the
discovery and development of small molecules - dramatically reducing the time
and cost to bring new drugs to market. COTI'S proprietary artificial
intelligence system, CHEMSAS(R), utilizes a series of predictive computer models
to identify compounds with a high probability of being successfully developed
from disease specific drug discovery through chemical optimization and
preclinical testing. These compounds are targeted for a variety of diseases,
particularly those for which current treatments are either lacking or
ineffective.


For more information, visit www.criticaloutcome.com.

Follow @CriticalOutcome on Twitter at http://twitter.com/CriticalOutcome 

Notice to Readers

Information contained in this press release may contain certain statements,
which constitute "forward- looking statements" within the meaning of the
Securities Act (Ontario) and applicable securities laws. For example, the
statement "... its investigational new drug filing with the U.S. FDA planned for
later in the calendar year..." and "... support of their upcoming final report
and the preparation of a joint scientific journal publication..." and "... look
forward to completing definitive agreements in the fourth quarter..." and "...
continues to seek additional financing to support the development of its lead
asset COTI-2 to a licensing agreement and fund its other activities..." are
forward-looking statements. Forward-looking statements by their nature are not
guarantees of future performance and are based upon management's current
expectations, estimates, projections and assumptions. COTI operates in a highly
competitive environment that involves significant risks and uncertainties, which
could cause actual results to differ materially from those anticipated in these
forward-looking statements. Management of COTI considers the assumptions on
which these forward-looking statements are based to be reasonable, but as a
result of the many risk factors, cautions the reader that actual results could
differ materially from those expressed or implied in these forward-looking
statements. Information in this press release should be considered accurate only
as of the date of the release and may be superseded by more recent information
disclosed in later press releases, filings with the securities regulatory
authorities or otherwise.


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


FOR FURTHER INFORMATION PLEASE CONTACT: 
Critical Outcome Technologies Inc. (COTI)
Dr. Wayne Danter
President & CEO
519-858-5157
wdanter@criticaloutcome.com
www.criticaloutcome.com


Heisler Communications
Trevor Heisler
Investor Relations
416-500-8061
trevor@heislercommunications.com

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