Full Press Release Details
Biotechnology Provides Corporate Update and Reports Third Quarter 2018 Financial Results
Tel Aviv, Israel November 13, 2018
- 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
"During the third quarter, we have
strengthened significantly our IP portfolio position with granted patents from the EU and Korea while closing an important partnership
agreement with the Korean Cell2in and the German denovoMATRIX for collaborations to further improve stem cell selection,"
stated Dr. Shai Yarkoni, Cellect's Chief Executive Officer.
"During the year we opened a second
site for the Company's ongoing clinical trial which allowed us to expedite the recruitment of additional patients and as
a result, half of the patients planned for the study have finished first month follow up and all such patients have shown 100%
engraftment with no procedure related adverse events and the first three patients of the trial (cohort I) have completed the study
period (180 days) with full safety and tolerability" continued Dr. Yarkoni. "We also achieved positive results on the
use of fat derived cells in orthopedic treatments in an animal model, we completed the first prototype of the Apotainer, showing
stable immobilization and good biological activity of FasL coated paramagnetic beads and we received a formal Notice of Allowance
from the Japanese and Australian Offices for Patents & Trademarks " Dr. Yarkoni added
"As we are getting nearer to commercialization
of our technology, we are putting more and more emphasis on partnerships with key players in our industry. We intend to continue
this path going forward and build one of the world's strongest IP portfolios for stem cell therapy related technologies and
a line of partnerships that will take the company to the next level commercially within the next 24 months." summarized Dr.
During the third quarter, Cellect accomplished
Recent Corporate Highlights:
Third Quarter 2018 Financial Results:
Balance Sheet Highlights:
* 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, 2018 (U.S.
The Company's consolidated financial
results for the three and nine months ended September 30, 2018 are presented in accordance with International Financial Reporting
About Cellect Biotechnology Ltd.
Cellect Biotechnology (NASDAQ: APOP) has
developed a breakthrough technology for the selection of stem cells from any given tissue that aims to improve a variety of stem
cell-based therapies.
The Company's technology is expected
to provide research, hospitals and pharma companies with the tools to rapidly isolate stem cells in quantity and quality allowing
stem cell-based treatments and procedures in a wide variety of applications in regenerative medicine. The Company's current
clinical trial is aimed at bone marrow transplantations in cancer treatment.
Forward Looking Statements
This 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 IP portfolio and potential commercialization of our technology. 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: the Company's history of losses and needs for additional
capital to fund its operations and its inability to obtain additional capital on acceptable terms, or at all; the Company's
ability to continue as a going concern; uncertainties of cash flows and inability to meet working capital needs; the Company's
ability to obtain regulatory approvals; the Company's ability to obtain favorable pre-clinical and clinical trial results;
the Company's technology may not be validated and its methods may not be accepted by the scientific community; difficulties
enrolling patients in the Company's clinical trials; the ability to timely source adequate supply of FasL; risks resulting
from unforeseen side effects; the Company's ability to establish and maintain strategic partnerships and other corporate
collaborations; the scope of protection the Company is able to establish and maintain for intellectual property rights and its
ability to operate its business without infringing the intellectual property rights of others; competitive companies, technologies
and the Company's industry; unforeseen scientific difficulties may develop with the Company's technology; and the Company's
ability to retain or attract key employees whose knowledge is essential to the development of its products. 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, 2017 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.
Cellect Biotechnology Ltd.
Eyal Leibovitz, Chief Financial Officer
Cellect Biotechnology Ltd
Consolidated Statement of Operation
| Convenience | ||||||||||||||||||||
| translation | ||||||||||||||||||||
| Nine months ended | Nine months ended | Three months ended | ||||||||||||||||||
| September 30, | September 30, | September 30, | ||||||||||||||||||
| 2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
| Unaudited | Unaudited | |||||||||||||||||||
| U.S. dollars | NIS | |||||||||||||||||||
| (In thousands, except share and per share data) | ||||||||||||||||||||
| Research and development expenses | 2,612 | 9,473 | 8,099 | 4,125 | 2,872 | |||||||||||||||
| General and administrative expenses | 3,033 | 11,001 | 9,524 | 3,929 | 3,478 | |||||||||||||||
| Operating loss | 5,645 | 20,474 | 17,623 | 8,054 | 6,350 | |||||||||||||||
| Financial expenses (income) due to warrants exercisable into ADS | (809 | ) | (2,935 | ) | 6,821 | (1,320 | ) | 1,509 | ||||||||||||
| Other financial expenses (income), net | (325 | ) | (1,177 | ) | 411 | 64 | (57 | ) | ||||||||||||
| Total comprehensive loss | 4,511 | 16,362 | 24,855 | 6,798 | 7,802 | |||||||||||||||
| Loss per share: | ||||||||||||||||||||
| Basic and diluted loss per share | 0.035 | 0.127 | 0.228 | 0.052 | 0.070 | |||||||||||||||
| Basic and diluted loss per ADS | 0.7 | 2.54 | 4.56 | 1.04 | 1.40 | |||||||||||||||
| Weighted average number of shares outstanding used to compute basic and diluted loss per share | 129,139,278 | 129,139,278 | 109,188,626 | 130,192,799 | 111,476,292 |
Cellect Biotechnology Ltd
Consolidated Balance Sheet Data
| Convenience | ||||||||||||
| translation | ||||||||||||
| September 30, | September 30, | December 31, | ||||||||||
| 2018 | 2018 | 2017 | ||||||||||
| Unaudited | Unaudited | Audited | ||||||||||
| U.S. dollars | NIS | |||||||||||
| (In thousands, except share and per share data) | ||||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS: | ||||||||||||
| Cash and cash equivalents | 6,447 | 23,385 | 13,734 | |||||||||
| Marketable securities | - | - | 13,999 | |||||||||
| Other receivables | 164 | 593 | 818 | |||||||||
| 6,611 | 23,978 | 28,551 | ||||||||||
| NON-CURRENT ASSETS: | ||||||||||||
| Restricted cash | 92 | 333 | 305 | |||||||||
| Other long-term assets | 39 | 142 | 173 | |||||||||
| Property, plant and equipment, net | 458 | 1,661 | 1,344 | |||||||||
| 589 | 2,136 | 1,822 | ||||||||||
| 7,200 | 26,114 | 30,373 | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| CURRENT LIABILITIES: | ||||||||||||
| Trade payables | 354 | 1,283 | 1,703 | |||||||||
| Other payables | 584 | 2,120 | 2,396 | |||||||||
| 938 | 3,403 | 4,099 | ||||||||||
| NON-CURRENT LIABILITIES: | ||||||||||||
| Warrants to ADS | 1,745 | 6,327 | 7,422 | |||||||||
| EQUITY: | ||||||||||||
| Ordinary shares of no par value: | ||||||||||||
| Authorized: 500,000,000 shares at December 31, 2017 and September 30 2018; Issued and outstanding: 120,185,659*) and 130,192,799*) shares as of December 31, 2017 and September 30, 2018, respectively. | - | - | - | |||||||||
| Additional Paid In Capital | 26,135 | 94,793 | 82,839 | |||||||||
| Share-based payments | 3,121 | 11,321 | 9,381 | |||||||||
| Treasury shares | (2,598 | ) | (9,425 | ) | (9,425 | ) | ||||||
| Accumulated deficit | (22,141 | ) | (80,305 | ) | (63,943 | ) | ||||||
| 4,517 | 16,384 | 18,852 | ||||||||||
| 7,200 | 26,114 | 30,373 |
of 2,641,693 treasury shares of the Company held by the Company.
Cellect Biotechnology Ltd
Consolidated Cash Flow Data
| Convenience | ||||||||||||||||||||
| translation | ||||||||||||||||||||
| Nine months ended | Nine months ended | Three months ended | ||||||||||||||||||
| September 30, | September 30, | September 30, | ||||||||||||||||||
| 2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
| Unaudited | Unaudited | |||||||||||||||||||
| U.S. dollars | NIS | |||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||
| Total comprehensive loss | (4,511 | ) | (16,362 | ) | (24,855 | ) | (6,798 | ) | (7,802 | ) | ||||||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||
| Net financing expenses | (227 | ) | (823 | ) | 504 | 14 | (29 | ) | ||||||||||||
| Loss (gain) from revaluation of financial assets presented at fair value through profit and loss | (79 | ) | (288 | ) | 140 | (140 | ) | (149 | ) | |||||||||||
| Depreciation | 93 | 337 | 278 | 122 | 94 | |||||||||||||||
| Changes in fair value of traded and not traded warrants to ADS | (885 | ) | (3,208 | ) | 6,650 | (1,320 | ) | 1,337 | ||||||||||||
| Share-based payment | 895 | 3,247 | 4,016 | 1,063 | 1,572 | |||||||||||||||
| Decrease (increase) in other receivables | 70 | 256 | 362 | 343 | 126 | |||||||||||||||
| Increase (decrease) in other payables | (195 | ) | (706 | ) | (633 | ) | 409 | (4 | ) | |||||||||||
| Interest received | (13 | ) | (47 | ) | - | (32 | ) | - | ||||||||||||
| Net cash used in operating activities | (4,852 | ) | (17,594 | ) | (13,538 | ) | (6,339 | ) | (4,855 | ) | ||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||
| Short term deposits, net | 78 | 282 | 19,530 | 3,785 | 18,020 | |||||||||||||||
| Restricted deposit, net | (6 | ) | (22 | ) | (167 | ) | 6 | (2 | ) | |||||||||||
| (Purchase) Sales of marketable securities measured at fair value through profit and loss | 3,859 | 13,999 | (5,009 | ) | 5,501 | (10,000 | ) | |||||||||||||
| Purchase of property, plant and equipment | (177 | ) | (643 | ) | (175 | ) | (415 | ) | (59 | ) | ||||||||||
| Net cash provided by investing activities | 3,754 | 13,616 | 14,179 | 8,877 | 7,959 | |||||||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||
| Exercise of warrants and stock options into shares | 110 | 399 | 1,263 | - | 197 | |||||||||||||||
| Issue of share capital and warrants, net of issue costs | 3,408 | 12,360 | 14,893 | - | 14,893 | |||||||||||||||
| Net cash provided (used) by financing activities | 3,518 | 12,759 | 16,156 | - | 15,090 | |||||||||||||||
| Exchange differences on balances of cash and cash equivalents | 240 | 870 | (504 | ) | 18 | 29 | ||||||||||||||
| Increase (decrease) in cash and cash equivalents | 2,660 | 9,651 | 16,293 | 2,556 | 18,223 | |||||||||||||||
| Balance of cash and cash equivalents at the beginning of the period | 3,787 | 13,734 | 6,279 | 20,829 | 4,349 | |||||||||||||||
| Balance of cash and cash equivalents at the end of the period | 6,447 | 23,385 | 22,572 | 23,385 | 22,572 |