Full Press Release Details
Cellect Biotechnology Ltd Provides Corporate
Update and Reports Third Quarter 2016 Financial Results
Tel Aviv, Israel November 28, 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 third
quarter ended September 30, 2016.
Dr. Shai Yarkoni, Chief Executive Officer,
said, "During the third quarter, we were pleased to receive the Israeli Ministry of Health's approval to begin a Phase
I/II clinical trial in leukemia patients to evaluate the safety and efficacy of Cellect's cell selection technology, Powered
by Cellect'. We believe Cellect's transformative approach to cell selection represents a significant breakthrough in
the ability to produce selective destruction of mature cell populations, thus reducing the significant risks associated with bone
marrow transplantation."
"We look forward to beginning to
enroll patients into this study, which is the first of its kind in leukemia patients in need of bone marrow transplantation, shortly,"
continued Dr. Yarkoni. "With this continued development progress, and our recent U.S. IPO, Cellect has never been in a stronger
operating position. Our focus remains on creating long-term shareholder value."
Recent Corporate Highlights:
Third 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 September 30, 2016 (U.S. $1
About Cellect Biotechnology Ltd.
Cellect Biotechnology is 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 the anticipated Phase I/II clinical trial in leukemia patients 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 final prospectus dated July 29, 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 period filings with the SEC and the Tel-Aviv Stock Exchange.
U.S. Investor Contact:
LifeSci Advisors, LLC
Cellect Biotechnology Ltd
Consolidated Statement of Operation
| Convenience | ||||||||||||||||||||
| translation | ||||||||||||||||||||
| Nine months ended | Nine months ended | Three months ended | ||||||||||||||||||
| September 30, | September 30, | September 30, | ||||||||||||||||||
| 2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
| Unaudited | Unaudited | |||||||||||||||||||
| U.S. dollars | NIS | |||||||||||||||||||
| (In thousands, except share and per share data) | ||||||||||||||||||||
| Research and development expenses | 1,527 | 5,738 | 4,073 | 2,059 | 1,517 | |||||||||||||||
| General and administrative expenses | 1,696 | 6,372 | 2,369 | 2,825 | 1,022 | |||||||||||||||
| Other income | (75 | ) | (280 | ) | - | - | - | |||||||||||||
| Operating loss | 3,148 | 11,830 | 6,442 | 4,884 | 2,539 | |||||||||||||||
| Financial expenses due to warrants exercisable into shares | 142 | 532 | - | 532 | - | |||||||||||||||
| Other financial expenses (income), net | 52 | 198 | 45 | 175 | (15 | ) | ||||||||||||||
| Total comprehensive loss | 3,342 | 12,560 | 6,487 | 5,591 | 2,524 | |||||||||||||||
| Loss per share: | ||||||||||||||||||||
| Basic and diluted loss per share | 0.039 | 0.147 | 0.088 | 0.057 | 0.033 | |||||||||||||||
| Weighted average number of shares outstanding used to compute basic and diluted loss per share | 85,583,252 | 85,583,252 | 73,962,752 | 98,494,725 | 75,989,903 |
Cellect Biotechnology Ltd
Consolidated Balance Sheet Data
| Convenience | ||||||||||||
| translation | ||||||||||||
| September 30, | September 30, | December 31, | ||||||||||
| 2016 | 2016 | 2015 | ||||||||||
| Unaudited | Unaudited | Audited | ||||||||||
| U.S. dollars | NIS | |||||||||||
| (In thousands, except share and per share data) | ||||||||||||
| CURRENT ASSETS: | ||||||||||||
| Cash and cash equivalents | 2,596 | 9,756 | 3,913 | |||||||||
| Short term deposits | 5,225 | 19,635 | - | |||||||||
| Marketable securities | 1,599 | 6,007 | 7,829 | |||||||||
| Accounts receivable | 307 | 1,155 | 412 | |||||||||
| 9,727 | 36,553 | 12,154 | ||||||||||
| NON-CURRENT ASSETS: | ||||||||||||
| Restricted cash | 5 | 20 | 20 | |||||||||
| Property, plant and equipment, net | 361 | 1,356 | 1,187 | |||||||||
| 366 | 1,376 | 1,207 | ||||||||||
| 10,093 | 37,929 | 13,361 | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| CURRENT LIABILITIES: | ||||||||||||
| Trade payables | 270 | 1,014 | 466 | |||||||||
| Other accounts payable | 510 | 1,916 | 2,394 | |||||||||
| 780 | 2,930 | 2,860 | ||||||||||
| NON-CURRENT LIABILITIES: | ||||||||||||
| Warrants exercisable into shares | 824 | 3,096 | - | |||||||||
| EQUITY: | ||||||||||||
| Ordinary shares of no par value: Authorized: 500,000,000 shares at December 31, 2015, September 30, 2015 and 2016; Issued and outstanding: 75,949,888*) at December 31, 2015 and September 30, 2015 and 107,583,485*) at September 30, 2016. | - | - | - | |||||||||
| Share premium | 17,972 | 67,539 | 36,725 | |||||||||
| Share-based payments | 1,796 | 6,751 | 3,603 | |||||||||
| Treasury shares | (2,508 | ) | (9,425 | ) | (9,425 | ) | ||||||
| Accumulated deficit | (8,771 | ) | (32,962 | ) | (20,402 | ) | ||||||
| 8,489 | 31,903 | 10,501 | ||||||||||
| 10,093 | 37,929 | 13,361 |
of 2,686,693 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, | ||||||||||||||||||
| 2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
| Unaudited | Unaudited | |||||||||||||||||||
| U.S. dollars | NIS | |||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||
| Net loss | (3,342 | ) | (12,560 | ) | (6,487 | ) | (5,591 | ) | (2,524 | ) | ||||||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||
| Financial expenses, net | 39 | 146 | 36 | 137 | (22 | ) | ||||||||||||||
| Loss (gain) from revaluation of financial assets presented at fair value through profit and loss | 6 | 21 | (3 | ) | 22 | - | ||||||||||||||
| Depreciation | 58 | 218 | 40 | 38 | 14 | |||||||||||||||
| Capital loss from sell of property, plant and equipment | 2 | 9 | - | - | - | |||||||||||||||
| Changes in fair value of warrants liability exercisable into shares | (20 | ) | (77 | ) | - | (77 | ) | - | ||||||||||||
| Share-based payment | 555 | 2,086 | 774 | 576 | 242 | |||||||||||||||
| Decrease (increase) in accounts receivable | (197 | ) | (743 | ) | (184 | ) | 17 | (184 | ) | |||||||||||
| Increase (decrease) in accounts payable | 158 | 595 | 313 | 1,090 | 121 | |||||||||||||||
| Interest received | - | - | 1 | - | - | |||||||||||||||
| Net cash used in operating activities | (2,741 | ) | (10,305 | ) | (5,510 | ) | (3,788 | ) | (2,353 | ) | ||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||
| Proceeds from the sale of property, plant and equipment | 25 | 95 | 77 | - | - | |||||||||||||||
| Short term deposits | (5,225 | ) | (19,635 | ) | - | (19,515 | ) | - | ||||||||||||
| Sale (purchase) of marketable securities measured at fair value through profit and loss | 479 | 1,801 | 3,430 | - | 2,000 | |||||||||||||||
| Purchase of property, plant and equipment | (315 | ) | (1,183 | ) | (49 | ) | (59 | ) | (42 | ) | ||||||||||
| Net cash provided by investing activities | (5,036 | ) | (18,922 | ) | 3,458 | (19,574 | ) | 1,958 | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||
| Exercise of stock options | 2 | 7 | 104 | - | - | |||||||||||||||
| Issue of share capital, net of issue costs | 9,369 | 35,209 | 6,292 | 27,745 | - | |||||||||||||||
| Net cash provided by financing activities | 9,371 | 35,216 | 6,396 | 27,745 | - | |||||||||||||||
| Exchange differences on balances of cash and cash equivalents | (39 | ) | (146 | ) | (37 | ) | (137 | ) | 22 | |||||||||||
| Increase (decrease) in cash and cash equivalents | 1,555 | 5,843 | 4,307 | 4,246 | (373 | ) | ||||||||||||||
| Balance of cash and cash equivalents at the beginning of the period | 1,041 | 3,913 | 2,122 | 5,510 | 6,802 | |||||||||||||||
| Balance of cash and cash equivalents at the end of the period | 2,596 | 9,756 | 6,429 | 9,756 | 6,429 |