Full Press Release Details
Cellect Biotechnology Ltd Provides Corporate
Update and Reports First Quarter 2017 Financial Results
Tel Aviv, Israel May 29, 2017 -
Cellect Biotechnology Ltd. (NASDAQ: "APOP", TASE: "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 first quarter
ended March 31st, 2017.
"We are very pleased with our accomplishments
in the first quarter of 2017," said Dr. Shai Yarkoni, Chief Executive Officer. "During the first quarter, we announced
the treatment of the first blood cancer patient in the recently initiated Phase I/II trial of the Company's stem cell technology
ApoGraft ; received a formal notice of allowance on a key method of treatment patent (Application No. 13/811,374) from the
United States Patent & Trademark Office; announced positive final results from the non-interventional clinical trial of ApoGraft
in healthy donors (104 donor test base); announced that Michael Berelowitz MD., former head, Clinical Development and Medical Affairs,
Pfizer Specialty Care Business Unit, joined Cellect's board of directors; announced that Dr. Corey Cutler, Senior Physician
at the world-renowned U.S. Dana Farber Cancer Institute and an Associate Professor of Medicine at Harvard Medical School, is joining
the Company's Scientific and Medical Advisory Board; announced that the Company intends to voluntarily delist Cellect from the
Tel Aviv Stock Exchange (TASE) in accordance with section 350 of the Israeli Company Law; and, announced the Successful First Cancer
Patient Stem Cell Transplant".
We believe that 2017 will be a transformative
year for Cellect Biotechnology as we move from showing great promise to delivering results. So far, we started treating patients
and preparing for entrance into US clinical trials. We have received further support for our IP domain and we strengthened our
team with the addition of key opinion leaders on the clinical and corporate front. We believe that we have significantly increased
awareness of our technology and company and laid the foundations to the next layer of business development.
Recent Corporate Highlights:
First Quarter 2017 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 March 31, 2017 (U.S. $1
About Cellect Biotechnology Ltd.
Cellect Biotechnology's securities
are traded on both the NASDAQ and Tel Aviv Stock Exchange (NASDAQ: "APOP", "APOPW", TASE: "APOP").
The Company is developing an innovative technology which enables the functional selection of stem cells based on their sensitivity
to apoptosis. This functional-based selection is a breakthrough technology in the ability to isolate stem cells from any given
tissue, and may improve a variety of stem cells applications.
The Company's first planned product
line is expected to include unique containers for cell selection in an apoptosis-inducing microenvironment. Cellect's first
planned commercial product candidate is a medical kit designed for the cancer treatment bone marrow transplantations market, as
well as other markets which require cell selection. The Company plans that in the future its technology will be integrated in many
production procedures of stem cell-based products.
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 anticipated performance in 2017, the anticipated Phase I/II clinical
trial in leukemia patients, the expected characteristics of our first product line, our beliefs about the future integration of
our technology into the production procedures of stem cell-based products 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 f 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.
Cellect Biotechnology Ltd.
Eyal Leibovitz, Chief Financial Officer
Cellect Biotechnology Ltd
Consolidated Statement of Operations
| Convenience translation Three months ended March 31 , | Three months ended March 31, | |||||||||||
| 2017 | 2017 | 2016 | ||||||||||
| Unaudited | Unaudited | Unaudited | ||||||||||
| U.S. Dollars | NIS | |||||||||||
| (In thousands, except share and per share data) | ||||||||||||
| Research and development expenses | 777 | 2,822 | 1,831 | |||||||||
| General and administrative expenses | 702 | 2,549 | 1,930 | |||||||||
| Operating loss | 1,479 | 5,371 | 3,761 | |||||||||
| Financial expenses due to warrants exercisable into shares | 1,865 | 6,773 | - | |||||||||
| Other financial expenses (income), net | 84 | 307 | 28 | |||||||||
| Total comprehensive loss | 3,428 | 12,451 | 3,789 | |||||||||
| Loss per share: | ||||||||||||
| Basic and diluted loss per share | 0.037 | 0.137 | 0.049 | |||||||||
| Weighted average number of shares outstanding used to compute basic and diluted loss per share | 91,145,370 | 91,145,370 | 76,743,707 |
Cellect Biotechnology Ltd
Consolidated Balance Sheet Data
| Convenience translation ended March 31, | March 31, | December 31, | ||||||||||
| 2017 | 2017 | 2016 | ||||||||||
| Unaudited | Unaudited | Audited | ||||||||||
| U.S. Dollars | NIS | |||||||||||
| (In thousands) | ||||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS: | ||||||||||||
| Cash and cash equivalents | 1,561 | 5,670 | 6,279 | |||||||||
| Short term deposits | 4,951 | 17,981 | 19,660 | |||||||||
| Marketable securities | 600 | 2,182 | 4,997 | |||||||||
| Accounts receivable | 415 | 1,505 | 1,461 | |||||||||
| 7,527 | 27,338 | 32,397 | ||||||||||
| NON-CURRENT ASSETS: | ||||||||||||
| Restricted cash | 39 | 140 | 140 | |||||||||
| Property, plant and equipment, net | 372 | 1,352 | 1,373 | |||||||||
| 411 | 1,492 | 1,513 | ||||||||||
| 7,938 | 28,830 | 33,910 | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| CURRENT LIABILITIES: | ||||||||||||
| Trade payables | 350 | 1,270 | 1,401 | |||||||||
| Other accounts payable | 365 | 1,324 | 2,084 | |||||||||
| 715 | 2,594 | 3,485 | ||||||||||
| NON-CURRENT LIABILITIES: | ||||||||||||
| Traded Warrants to ADS | 2,398 | 8,711 | 1,938 | |||||||||
| EQUITY: | ||||||||||||
| Ordinary shares of no par value: Authorized: 500,000,000 shares at December 31, 2016, March 31, 2016 and 2017; Issued and outstanding: 107,583,485*) at December 31, 2016, and 108,083,485*) at March 31, 2017 and 81,733,325*) at March 31, 2016. | - | - | - | |||||||||
| Share premium | 18,895 | 68,628 | 67,414 | |||||||||
| Share-based payments | 1,788 | 6,493 | 6,217 | |||||||||
| Treasury shares | (2,595 | ) | (9,425 | ) | (9,425 | ) | ||||||
| Accumulated deficit | (13,263 | ) | (48,171 | ) | (35,719 | ) | ||||||
| 4,825 | 17,525 | 28,487 | ||||||||||
| 7,938 | 28,830 | 33,910 |
Cellect Biotechnology Ltd
Consolidated Cash Flow Data
| Convenience translation Three months ended March 31 , | Three months ended March 31, | |||||||||||
| 2017 | 2017 | 2016 | ||||||||||
| Unaudited | Unaudited | Unaudited | ||||||||||
| U.S. dollars | NIS | |||||||||||
| (In thousands) | ||||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net loss | (3,428 | ) | (12,451 | ) | (3,789 | ) | ||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Financial expenses, net | 92 | 333 | 20 | |||||||||
| Loss (gain) from revaluation of financial assets presented at fair value through profit and loss | 48 | 176 | (1 | ) | ||||||||
| Depreciation | 25 | 90 | 77 | |||||||||
| Changes in fair value of warrants liability exercisable into shares | 1,865 | 6,773 | - | |||||||||
| Share-based payment | 233 | 847 | 877 | |||||||||
| Decrease (increase) in accounts receivable | (12 | ) | (44 | ) | (469 | ) | ||||||
| Increase (decrease) in accounts payable | (246 | ) | (892 | ) | (62 | ) | ||||||
| Net cash used in operating activities | (1,423 | ) | (5,168 | ) | (3,347 | ) | ||||||
| Cash flows from investing activities: | ||||||||||||
| Short term deposits | 416 | 1,510 | - | |||||||||
| Sale (purchase) of marketable securities measured at fair value through profit and loss | 773 | 2,808 | 1,681 | |||||||||
| Purchase of property , plant and equipment | (19 | ) | (69 | ) | (1,047 | ) | ||||||
| Net cash provided by investing activities | 1,170 | 4,249 | 634 | |||||||||
| Cash flows from financing activities: | ||||||||||||
| Exercise of stock options | 177 | 643 | - | |||||||||
| Issue of share capital, net of issue costs | - | - | 7,535 | |||||||||
| Net cash provided by financing activities | 177 | 643 | 7,535 | |||||||||
| Exchange differences on balances of cash and cash equivalents | (92 | ) | (333 | ) | (20 | ) | ||||||
| Increase (decrease) in cash and cash equivalents | (168 | ) | (609 | ) | 4,802 | |||||||
| Balance of cash and cash equivalents at the beginning of the period | 1,729 | 6,279 | 3,913 | |||||||||
| Balance of cash and cash equivalents at the end of the period | 1,561 | 5,670 | 8,715 |