Full Press Release Details
Biotechnology Ltd Provides Corporate Update and Reports Third Quarter 2017 Financial Results
Aviv, Israel November 22, 2017 - Cellect Biotechnology Ltd. (NASDAQ: "APOP"), a developer of innovative technology
which enables the functional selection of stem cells, today provided a corporate update and announced financial results for the
third quarter ended September 30, 2017.
are very pleased with our accomplishments in the third quarter of 2017" said Dr. Shai Yarkoni, Chief Executive Officer; "As
planned, the third quarter continues to show progress in Cellect's path to global leadership in the regenerative medicine
arena. We were granted an important FDA Orphan Drug Designation Status for Cellect's ApoGraft for the prevention of acute
and chronic GvHD which we believe will allow us to efficiently speed up the commercialization process of ApoGraft and with
the view to the future, we have successfully completed a voluntary de-listing from the Tel-Aviv stock exchange and migrated to
trade exclusively on the NASDAQ to maximize shareholders' value from our future endeavors. In this respect we have also
successfully raised $4.3M gross during the third quarter of 2017, to finance our strategic business development activities. We
remain confident of our progress and leadership position in the stem cell market."
Corporate Highlights:
Quarter 2017 Financial Results:
For the convenience of the reader, the amounts above have been translated from NIS into U.S. dollars, at the representative rate
of exchange on September 30, 2017 (U.S. $1 = NIS 3.529).
Company's unaudited consolidated financial results for the three and nine months ended September 30, 2017 are presented
in accordance with International Financial Reporting Standards.
Cellect Biotechnology Ltd.
Biotechnology (NASDAQ: "APOP", "APOPW") has developed a breakthrough technology for the selection of stem
cells from any given tissue that aims to improve a variety of stem cell applications.
Company's technology is expected to provide pharma companies, medical research centers and hospitals with the tools to rapidly
isolate stem cells in quantity and quality that will allow stem cell related treatments and procedures. Cellect's technology
is applicable to a wide variety of stem cell related treatments in regenerative medicine and that current clinical trials are
aimed at the cancer treatment of bone marrow transplantations.
press release contains forward-looking statements about the Company's expectations, beliefs and intentions. Forward-looking
statements can be identified by the use of forward-looking words such as "believe", "expect", "intend",
"plan", "may", "should", "could", "might", "seek", "target",
"will", "project", "forecast", "continue" or "anticipate" or their
negatives or variations of these words or other comparable words or by the fact that these statements do not relate strictly to
historical matters. For example, forward-looking statements are used in this press release when we discuss our anticipated performance
in 2017 and the potential of our technology and its proposed uses. These forward-looking statements and their implications are
based on the current expectations of the management of the Company only, and are subject to a number of factors and uncertainties
that could cause actual results to differ materially from those described in the forward-looking statements. In addition, historical
results or conclusions from scientific research and clinical studies do not guarantee that future results would suggest similar
conclusions or that historical results referred to herein would be interpreted similarly in light of additional research or otherwise.
The following factors, among others, could cause actual results to differ materially from those described in the forward-looking
statements: changes in technology and market requirements; we may encounter delays or obstacles in launching and/or successfully
completing our clinical trials; our products may not be approved by regulatory agencies, our technology may not be validated as
we progress further and our methods may not be accepted by the scientific community; we may be unable to retain or attract key
employees whose knowledge is essential to the development of our products; unforeseen scientific difficulties may develop with
our process; our products may wind up being more expensive than we anticipate; results in the laboratory may not translate to
equally good results in real clinical settings; results of preclinical studies may not correlate with the results of human clinical
trials; our patents may not be sufficient; our products may harm recipients; changes in legislation; inability to timely develop
and introduce new technologies, products and applications, which could cause the actual results or performance of the Company
to differ materially from those contemplated in such forward-looking statements. Any forward-looking statement in this press release
speaks only as of the date of this press release. The Company undertakes no obligation to publicly update or review any forward-looking
statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable
securities laws. More detailed information about the risks and uncertainties affecting the Company is contained under the heading
"Risk Factors" in Cellect Biotechnology Ltd.'s Annual Report on Form 20-F for the fiscal year ended December
31, 2016 filed with the U.S. Securities and Exchange Commission, or SEC, which is available on the SEC's website, www.sec.gov
and in the Company's periodic filings with the SEC and the Tel-Aviv Stock Exchange.
Leibovitz, Chief Financial Officer
Statement of Operation
| Convenience | ||||||||||||||||||||
| translation | ||||||||||||||||||||
| Nine months ended | Nine months ended | Three months ended | ||||||||||||||||||
| September 30, | September 30, | September 30, | ||||||||||||||||||
| 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
| Unaudited | Unaudited | |||||||||||||||||||
| U.S. dollars | NIS | |||||||||||||||||||
| (In thousands, except share and per share data) | ||||||||||||||||||||
| Research and development expenses | 2,295 | 8,099 | 5,738 | 2,872 | 2,059 | |||||||||||||||
| General and administrative expenses | 2,699 | 9,524 | 6,247 | 3,478 | 2,700 | |||||||||||||||
| Other income | - | - | (280 | ) | - | - | ||||||||||||||
| Operating loss | 4,994 | 17,623 | 11,705 | 6,350 | 4,759 | |||||||||||||||
| Financial expenses due to warrants exercisable into ADS | 1,933 | 6,821 | 532 | 1,509 | 532 | |||||||||||||||
| Other financial expenses (income), net | 116 | 411 | 198 | (57 | ) | 175 | ||||||||||||||
| Total comprehensive loss | 7,043 | 24,855 | 12,435 | 7,802 | 5,466 | |||||||||||||||
| Loss per share and ADS: | ||||||||||||||||||||
| Basic and diluted loss per share | 0.065 | 0.228 | 0.145 | 0.070 | 0.055 | |||||||||||||||
| Basic and diluted loss per ADS | 1.292 | 4.56 | 2.90 | 1.40 | 1.10 | |||||||||||||||
| Weighted average number of shares outstanding used to compute basic and diluted loss per share | 109,188,626 | 109,188,626 | 85,583,252 | 111,476,292 | 98,494,725 |
| Convenience | ||||||||||||
| translation | ||||||||||||
| September 30, | September 30, | December 31, | ||||||||||
| 2017 | 2017 | 2016 | ||||||||||
| Unaudited | Unaudited | Audited | ||||||||||
| U.S. dollars | NIS | |||||||||||
| (In thousands, except share and per share data) | ||||||||||||
| CURRENT ASSETS: | ||||||||||||
| Cash and cash equivalents | 6,396 | 22,572 | 6,279 | |||||||||
| Short term deposits, net | - | - | 19,660 | |||||||||
| Marketable securities | 2,833 | 9,996 | 4,997 | |||||||||
| Other accounts receivable | 284 | 1,004 | 1,461 | |||||||||
| 9,513 | 33,572 | 32,397 | ||||||||||
| NON-CURRENT ASSETS: | ||||||||||||
| Restricted cash | 87 | 307 | 140 | |||||||||
| Other long-term assets | 27 | 95 | - | |||||||||
| Property, plant and equipment, net | 360 | 1,270 | 1,373 | |||||||||
| 474 | 1,672 | 1,513 | ||||||||||
| 9,987 | 35,244 | 33,910 | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| CURRENT LIABILITIES: | ||||||||||||
| Trade payables | 575 | 2,027 | 1,401 | |||||||||
| Other accounts payable | 368 | 1,297 | 2,084 | |||||||||
| Non Traded Warrants to ADS | 693 | 2,447 | - | |||||||||
| 1,636 | 5,771 | 3,485 | ||||||||||
| NON-CURRENT LIABILITIES: | ||||||||||||
| Traded Warrants to ADS | 2,443 | 8,622 | 1,938 | |||||||||
| EQUITY: | ||||||||||||
| Ordinary shares of no par value: Authorized: 500,000,000 shares at December 31, 2016 and September 30 2017; Issued and outstanding: 107,583,485*) at December 31, 2016; 119,843,679*) at September 30, 2017. | - | - | - | |||||||||
| Share premium | 22,773 | 80,367 | 67,414 | |||||||||
| Capital funds | 2,971 | 10,483 | 6,217 | |||||||||
| Treasury shares | (2,671 | ) | (9,425 | ) | (9,425 | ) | ||||||
| Accumulated deficit | (17,165 | ) | (60,574 | ) | (35,719 | ) | ||||||
| 5,908 | 20,851 | 28,487 | ||||||||||
| 9,987 | 35,244 | 33,910 |
of 2,686,693 treasury shares of the Company held by the Company.
| Convenience | ||||||||||||||||||||
| translation | ||||||||||||||||||||
| Nine months ended | Nine months ended | Three months ended | ||||||||||||||||||
| September 30, | September 30, | September 30, | ||||||||||||||||||
| 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
| Unaudited | Unaudited | |||||||||||||||||||
| U.S. dollars | NIS | |||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||
| Total comprehensive loss | (7,043 | ) | (24,855 | ) | (12,435 | ) | (7,802 | ) | (5,466 | ) | ||||||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||
| Net financing expenses | 143 | 504 | 146 | (29 | ) | 137 | ||||||||||||||
| Loss (gain) from revaluation of financial assets presented at fair value through profit and loss | 40 | 140 | 21 | (149 | ) | 22 | ||||||||||||||
| Depreciation | 79 | 278 | 218 | 94 | 38 | |||||||||||||||
| Capital loss from sell of property, plant and equipment | - | - | 9 | - | - | |||||||||||||||
| Changes in fair value of traded and not traded warrants to ADS | 1,884 | 6,650 | (77 | ) | 1,337 | (77 | ) | |||||||||||||
| Share-based payment | 1,138 | 4,016 | 2,086 | 1,572 | 576 | |||||||||||||||
| Decrease (increase) in other receivables | 103 | 362 | (743 | ) | 126 | 17 | ||||||||||||||
| Increase (decrease) in other payables | (179 | ) | (633 | ) | 595 | (4 | ) | 1,090 | ||||||||||||
| Net cash used in operating activities | (3,835 | ) | (13,538 | ) | (10,180 | ) | (4,855 | ) | (3,663 | ) | ||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||
| Proceeds received from the sale of fixed assets | - | - | 95 | - | - | |||||||||||||||
| Short term deposits, net | 5,534 | 19,530 | (19,635 | ) | 18,020 | (19,515 | ) | |||||||||||||
| Purchase of marketable securities measured at fair value through profit and loss | (2,834 | ) | (10,000 | ) | - | (10,000 | ) | - | ||||||||||||
| Restricted cash, net | (47 | ) | (167 | ) | - | (2 | ) | - | ||||||||||||
| Sales of marketable securities measured at fair value through profit and loss | 1,414 | 4,991 | 1,801 | - | - | |||||||||||||||
| Purchase of property, plant and equipment | (50 | ) | (175 | ) | (1,183 | ) | (59 | ) | (59 | ) | ||||||||||
| Net cash provided by (used in) investing activities | 4,017 | 14,179 | (18,922 | ) | 7,959 | (19,574 | ) | |||||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||
| Exercise of stock options | 358 | 1,263 | 7 | 197 | - | |||||||||||||||
| Issue of share capital and warrants, net of issue costs | 4,220 | 14,893 | 35,084 | 14,893 | 27,620 | |||||||||||||||
| Net cash provided by financing activities | 4,578 | 16,156 | 35,091 | 15,090 | 27,620 | |||||||||||||||
| Exchange differences on balances of cash and cash equivalents | (143 | ) | (504 | ) | (146 | ) | 29 | (137 | ) | |||||||||||
| Increase in cash and cash equivalents | 4,617 | 16,293 | 5,843 | 18,223 | 4,246 | |||||||||||||||
| Balance of cash and cash equivalents at the beginning of the period | 1,779 | 6,279 | 3,913 | 4,349 | 5,510 | |||||||||||||||
| Balance of cash and cash equivalents at the end of the period | 6,396 | 22,572 | 9,756 | 22,572 | 9,756 |