Full Press Release Details
Biotechnology Reports First Quarter 2019 Financial and Operating Results
Aviv, Israel May 21, 2019 - Cellect Biotechnology Ltd. (NASDAQ: "APOP"), a developer of innovative technology
which enables the functional selection of stem cells, today reported financial and operating results for the first quarter ended
March 31, 2019 and provided a corporate update.
technology continues to be validated with our recently announced mid-study results from our Phase I/II study, further demonstrating
the immense potential to reshape the clinical development environment for hundreds of corporations and academic labs by significantly
reducing time to market and cost," commented Dr. Shai Yarkoni, Chief Executive Officer. "However, notwithstanding
our clinical success, we are undertaking a strategic review of our business and we intend to explore all value-focused options
that better reflect our great promise and maximize shareholder equity. Therefore, we are implementing a number of initiatives,
including lowering our operating costs, as we remain committed to our IND application and US clinical study plans".
Quarter Clinical Success Continues to Validate Novel Manufacturing Technology
Company's cash and cash equivalents totaled $9.6 million as of March 31, 2019, which includes gross proceeds of $7.0 million
from an underwritten public offering completed in February 2019. The Company is implementing a cost reduction plan, including
a reduction in workforce, which is designed to preserve the Company's financial resources to allow it to continue its ongoing
clinical program, including its planned Phase I/II trial in the United States in collaboration with Washington University while
exploring strategic alternatives.
May 2019, the Company announced that it commenced plans to explore strategic alternatives focused on maximizing shareholder value.
Potential strategic alternatives that may be evaluated include, but are not limited to, an acquisition, merger, business combination,
in-licensing, or other strategic transaction involving the Company or its assets.
Quarter 2019 Financial Results:
Cellect Biotechnology Ltd.
Biotechnology (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.
Company's technology is expected to provide researchers, clinical community 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.
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 Cellect's expectations regarding timing of the commencement
of its planned U.S. clinical trial and its plan to reduce operating costs. 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; the Company's ability to retain or attract key employees whose knowledge is essential to the development
of its products; and the Company's ability to pursue any strategic transaction or that any transaction, if pursued, will
be completed. 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, 2018 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.
Leibovitz, Chief Financial Officer
Statement of Operation
| Convenience | ||||||||||||
| translation | ||||||||||||
| Three months ended | Three months ended | |||||||||||
| March 31, | March 31, | |||||||||||
| 2019 | 2019 | 2018 | ||||||||||
| Unaudited | Unaudited | |||||||||||
| U.S. dollars | NIS | |||||||||||
| Research and development expenses, net | 970 | 3,523 | 2,857 | |||||||||
| General and administrative expenses | 649 | 2,355 | 3,452 | |||||||||
| Total operating loss | 1,619 | 5,878 | 6,309 | |||||||||
| Financial expenses (income) due to warrants exercisable into ADS | (328 | ) | (1,192 | ) | (2,224 | ) | ||||||
| Other financial expenses (income), net | 115 | 418 | (510 | ) | ||||||||
| Total comprehensive loss | 1,406 | 5,104 | 3,575 | |||||||||
| Loss per share and ADS: | ||||||||||||
| Basic and diluted loss per share | 0.008 | 0.029 | 0.028 | |||||||||
| Basic and diluted loss per ADS | 0.16 | 0.58 | 0.56 | |||||||||
| Weighted average number of shares outstanding used to compute basic and diluted loss per share | 177,277,833 | 177,277,833 | 126,973,049 |
| Convenience | ||||||||||||
| translation | ||||||||||||
| March 31, | March 31, | December 31, | ||||||||||
| 2019 | 2019 | 2018 | ||||||||||
| Unaudited | Unaudited | Audited | ||||||||||
| U.S. dollars | NIS | |||||||||||
| (In thousands, except share and per share data) | ||||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS: | ||||||||||||
| Cash and cash equivalents | 9,598 | 34,862 | 17,809 | |||||||||
| Other receivables | 209 | 757 | 816 | |||||||||
| 9,807 | 35,619 | 18,625 | ||||||||||
| NON-CURRENT ASSETS: | ||||||||||||
| Restricted cash | 92 | 333 | 337 | |||||||||
| Right of use assests | 413 | 1,499 | - | |||||||||
| Other long-term receivables | 33 | 123 | 132 | |||||||||
| Property, plant and equipment, net | 431 | 1,566 | 1,544 | |||||||||
| 969 | 3,521 | 2,013 | ||||||||||
| 10,776 | 39,140 | 20,638 | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| CURRENT LIABILITIES: | ||||||||||||
| Trade payables | 233 | 848 | 887 | |||||||||
| Other payables | 1,425 | 5,176 | 4,012 | |||||||||
| Current maturities of lease liability | 135 | 492 | - | |||||||||
| 1,793 | 6,516 | 4,899 | ||||||||||
| NON-CURRENT LIABILITIES: | ||||||||||||
| Warrants to ADS | 2,648 | 9,617 | 1,816 | |||||||||
| Lease liability | 281 | 1,021 | - | |||||||||
| 2,929 | 10,638 | 1,816 | ||||||||||
| EQUITY: | ||||||||||||
| Ordinary shares of no par value: Authorized: 500,000,000 shares at December 31, 2018 and March 31, 2019; Issued and outstanding: 130,414,799*) and 224,087,799*) shares as of December 31, 2018 and March 31, 2019, respectively. | - | - | - | |||||||||
| Additional Paid in Capital | 29,810 | 108,269 | 95,085 | |||||||||
| Share-based payments | 3,387 | 12,302 | 12,319 | |||||||||
| Treasury shares | (2,595 | ) | (9,425 | ) | (9,425 | ) | ||||||
| Accumulated deficit | (24,548 | ) | (89,160 | ) | (84,056 | ) | ||||||
| 6,054 | 21,986 | 13,923 | ||||||||||
| 10,776 | 39,140 | 20,638 |
| Convenience | ||||||||||||
| translation | ||||||||||||
| Three months ended | Three months ended | |||||||||||
| March 31, | March 31, | |||||||||||
| 2019 | 2019 | 2018 | ||||||||||
| Unaudited | Unaudited | |||||||||||
| U.S. dollars | NIS | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Total comprehensive loss | (1,406 | ) | (5,104 | ) | (3,575 | ) | ||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Exchange rate difference | 103 | 372 | (523 | ) | ||||||||
| Loss from revaluation of financial assets presented at fair value through profit and loss | 1 | 4 | - | |||||||||
| Depreciation | 27 | 98 | 105 | |||||||||
| Share-based payment | (59 | ) | (215 | ) | 1,247 | |||||||
| Changes in fair value of traded and not traded warrants to ADS | (701 | ) | (2,546 | ) | (2,496 | ) | ||||||
| Decrease (increase) in other receivables | 19 | 70 | 63 | |||||||||
| Depreciation in right of use assets | 31 | 114 | - | |||||||||
| Increase (decrease) in other payables | 4 | 15 | (911 | ) | ||||||||
| Net cash used in operating activities | (1,981 | ) | (7,192 | ) | (6,090 | ) | ||||||
| Cash flows from investing activities: | ||||||||||||
| Restricted deposit | - | - | (163 | ) | ||||||||
| Marketable securities measured at fair value through profit and loss, net | - | - | 4,500 | |||||||||
| Purchase of property, plant and equipment | (33 | ) | (120 | ) | (140 | ) | ||||||
| Net cash provided by investing activities | (33 | ) | (120 | ) | 4,197 | |||||||
| Cash flows from financing activities: | ||||||||||||
| Exercise of warrants and stock options into shares | - | - | 399 | |||||||||
| Issue of share capital and warrants, net of issue costs | 6,839 | 24,837 | 12,365 | |||||||||
| Interest paid | 11 | 37 | - | |||||||||
| Repayment of lease liability | (38 | ) | (137 | ) | - | |||||||
| Net cash provided by financing activities | 6,812 | 24,737 | 12,764 | |||||||||
| Exchange differences on balances of cash and cash equivalents | (103 | ) | (372 | ) | 523 | |||||||
| Increase (decrease) in cash and cash equivalents | 4,695 | 17,053 | 11,394 | |||||||||
| Balance of cash and cash equivalents at the beginning of the period | 4,903 | 17,809 | 13,734 | |||||||||
| Balance of cash and cash equivalents at the end of the period | 9,598 | 34,862 | 25,128 |