Full Press Release Details
Cellect Biotechnology
Ltd Provides Corporate Update and Reports Second Quarter 2016 Financial Results
Raised Gross Proceeds of $8.4 Million
through Pricing of July U.S. Initial Public Offering
Tel Aviv, Israel August 31, 2016
- 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 second
quarter ended June 30, 2016.
Dr. Shai Yarkoni, Chief Executive Officer,
said, "During the second quarter, we achieved significant progress in advancing preparations for our phase 1/2 clinical trial
and regulatory activities related to the development of our first stem cell selection product, "Powered by Cellect"/Apotainer .
In addition, we recently entered into a collaboration with Accellta in order to evaluate the applicability of our technology to
accelerate cell growth. We also received approval of a potential grant from the BIRD Foundation for our co-development program
with a U.S. based company listed on Nasdaq.. This grant, if approved by the BIRD Foundation, will enable us to expedite the development
of our ApotainerTM product."
Recent Corporate Highlights:
Second Quarter 2016 Financial Results:
Balance Sheet Highlights:
For the convenience of the reader, the amounts have been translated from
NIS into U.S. dollars, at the representative rate of exchange on June 30, 2016 (U.S. $1 = NIS 3.846).
About Cellect Biotechnology Ltd.
Cellect Biotechnology is traded on both
the NASDAQ and Tel Aviv Stock Exchange (NASDAQ: "APOP", TASE: "APOP"). The Company develops 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 the potential for the BIRD Foundation Grant
and the description 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 not suggest different
conclusions or that historical results referred to herein would not be interpreted differently 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 final prospectus dated July 29, 2016
filed with the SEC, which is available on the SEC's website, www.sec.gov. and in the Company's period filings with
the Tel-Aviv Stock Exchange.
U.S. Investor Contact:
LifeSci Advisors, LLC
Cellect Biotechnology Ltd
Consolidated Statement of Operation
| Convenience | ||||||||||||||||||||
| translation | ||||||||||||||||||||
| Six months ended | Six months ended | Three months ended | ||||||||||||||||||
| June 30, | June 30, | June 30, | ||||||||||||||||||
| 2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
| Unaudited | Unaudited | |||||||||||||||||||
| U.S. dollars | NIS | |||||||||||||||||||
| (In thousands, except share and per share data) | ||||||||||||||||||||
| Research and development expenses | 957 | 3,679 | 2,556 | 1,848 | 1,372 | |||||||||||||||
| General and administrative expenses | 922 | 3,547 | 1,347 | 1,617 | 755 | |||||||||||||||
| Other income | (73 | ) | (280 | ) | - | (280 | ) | - | ||||||||||||
| Operating loss | 1,806 | 6,946 | 3,903 | 3,185 | 2,127 | |||||||||||||||
| Financial income | (5 | ) | (18 | ) | (4 | ) | (13 | ) | - | |||||||||||
| Financial expenses | 11 | 41 | 64 | 8 | 9 | |||||||||||||||
| Total comprehensive loss | 1,812 | 6,969 | 3,963 | 3,180 | 2,136 | |||||||||||||||
| Loss per share: | ||||||||||||||||||||
| Basic and diluted loss per share | 0.023 | 0.088 | 0.052 | 0.039 | 0.026 | |||||||||||||||
| Weighted average number of shares outstanding used to compute basic and diluted loss per share | 79,113,097 | 79,113,097 | 72,926,653 | 81,456,571 | 74,727,976 |
Cellect Biotechnology Ltd
Consolidated Balance Sheet Data
| Convenience | ||||||||||||
| translation | ||||||||||||
| June 30, | June 30, | December 31, | ||||||||||
| 2016 | 2016 | 2015 | ||||||||||
| Unaudited | Unaudited | Unaudited | ||||||||||
| U.S. dollars | NIS | |||||||||||
| (In thousands, except share and per share data) | ||||||||||||
| CURRENT ASSETS: | ||||||||||||
| Cash and cash equivalents | 1,433 | 5,510 | 3,913 | |||||||||
| Marketable securities | 1,598 | 6,148 | 7,829 | |||||||||
| Accounts receivable | 421 | 1,619 | 412 | |||||||||
| 3,452 | 13,277 | 12,154 | ||||||||||
| NON-CURRENT ASSETS: | ||||||||||||
| Restricted cash | 5 | 20 | 20 | |||||||||
| Property, plant and equipment, net | 347 | 1,335 | 1,187 | |||||||||
| 352 | 1,355 | 1,207 | ||||||||||
| 3,804 | 14,632 | 13,361 | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| CURRENT LIABILITIES: | ||||||||||||
| Trade payables | 183 | 703 | 466 | |||||||||
| Other accounts payable | 279 | 1,074 | 2,394 | |||||||||
| 462 | 1,777 | 2,860 | ||||||||||
| EQUITY: | ||||||||||||
| Ordinary shares of no par value: Authorized: 500,000,000 shares at December 31, 2015, June 30, 2015 and 2016; Issued and outstanding: 75,949,888*) at December 31, 2015 and June 30, 2015 and 81,737,325*) at June 30, 2016. | - | - | - | |||||||||
| Share premium | 11,478 | 44,144 | 36,725 | |||||||||
| Share-based payments | 1,432 | 5,507 | 3,603 | |||||||||
| Treasury shares | (2,451 | ) | (9,425 | ) | (9,425 | ) | ||||||
| Accumulated deficit | (7,117 | ) | (27,371 | ) | (20,402 | ) | ||||||
| 3,342 | 12,855 | 10,501 | ||||||||||
| 3,804 | 14,632 | 13,361 |
Cellect Biotechnology Ltd
Consolidated Cash Flow Data
| Convenience | ||||||||||||||||||||
| translation | ||||||||||||||||||||
| Six months ended | Six months ended | Three months ended | ||||||||||||||||||
| June 30, | June 30, | June 30, | ||||||||||||||||||
| 2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
| Unaudited | Unaudited | |||||||||||||||||||
| U.S. dollars | NIS | |||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||
| Net loss | (1,812 | ) | (6,969 | ) | (3,963 | ) | (3,180 | ) | (2,136 | ) | ||||||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||
| Financial expenses, net | 2 | 9 | 59 | (11 | ) | 7 | ||||||||||||||
| Loss (gain) from revaluation of financial assets presented at fair value through profit and loss | - | (1 | ) | (3 | ) | - | 1 | |||||||||||||
| Depreciation | 47 | 180 | 26 | 103 | 13 | |||||||||||||||
| Capital loss from sell of property, plant and equipment | 2 | 9 | - | 9 | - | |||||||||||||||
| Share-based payment | 393 | 1,510 | 532 | 633 | 238 | |||||||||||||||
| Decrease (increase) in accounts receivable | (198 | ) | (760 | ) | (2 | ) | (291 | ) | 32 | |||||||||||
| Increase (decrease) in accounts payable | (129 | ) | (495 | ) | 193 | (134 | ) | 293 | ||||||||||||
| Interest received | - | - | 1 | - | 1 | |||||||||||||||
| Net cash used in operating activities | (1,695 | ) | (6,517 | ) | (3,157 | ) | (2,871 | ) | (1,551 | ) | ||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||
| Proceeds from the sale of property, plant and equipment | 25 | 95 | 77 | 95 | - | |||||||||||||||
| Investment in marketable securities measured at fair value through profit and loss | (31 | ) | (120 | ) | - | - | - | |||||||||||||
| Sale of marketable securities measured at fair value through profit and loss | 468 | 1,801 | 1,430 | - | 830 | |||||||||||||||
| Purchase of property, plant and equipment on credit | (180 | ) | (692 | ) | - | - | - | |||||||||||||
| Purchase of property, plant and equipment | (112 | ) | (432 | ) | (7 | ) | (77 | ) | - | |||||||||||
| Net cash provided by investing activities | 170 | 652 | 1,500 | 18 | 830 | |||||||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||
| Exercise of stock options | 2 | 7 | 104 | 7 | 104 | |||||||||||||||
| Issue of share capital, net of issue costs | 1,941 | 7,464 | 6,292 | (370 | ) | 6,292 | ||||||||||||||
| Net cash provided by financing activities | 1,943 | 7,471 | 6,396 | (363 | ) | 6,396 | ||||||||||||||
| Exchange differences on balances of cash and cash equivalents | (2 | ) | (9 | ) | (59 | ) | 11 | (7 | ) | |||||||||||
| Increase (decrease) in cash and cash equivalents | 416 | 1,597 | 4,680 | (3,205 | ) | 5,668 | ||||||||||||||
| Balance of cash and cash equivalents at the beginning of the period | 1,017 | 3,913 | 2,122 | 8,715 | 1,134 | |||||||||||||||
| Balance of cash and cash equivalents at the end of the period | 1,433 | 5,510 | 6,802 | 5,510 | 6,802 |