Harvested sufficient soybean seeds for
commercial launch in 2018
Customer discussions initiated and
positive
Breeding program advancing and increasing
the number of varieties
Advanced herbicide tolerant wheat and
improved oil composition canola
Calyxt’s powdery mildew-resistant wheat
validated fungal resistance
Completed IPO with $64M in gross
proceeds
Sale-lease back agreement adds adtl. $7M to
balance sheet
Calyxt, Inc., (NASDAQ:CLXT) a consumer-centric, food- and
agriculture-focused company, today announced its results for the
three-month period ended September 30, 2017 and for the nine-month
period ended September 30, 2017.
Investor Call Details
Calyxt will host an investor call on November 14, 2017 at 8:00am
Eastern Time to discuss its financial results and provide a general
business update.
Dial-In Numbers:
Live PARTICIPANT Dial-In (Toll-Free US & Canada):
877-407-9747Live PARTICIPANT Dial-In (International): +1
412-902-0044
Replay Information:
Conference ID #: 13673206Replay Dial-In (Toll Free US &
Canada): 877-660-6853Replay Dial-In (International):
201-612-7415Expiration Date: 11/28/17
Webcast URL (Archived for 6 months):
http://calyxt.equisolvewebcast.com/q3-2017
“So much progress has been made in 2017 to date,” mentioned
Federico Tripodi, CEO Calyxt. “On the high oleic soybean program,
we have received positive feedback from potential customers and
successfully harvested enough soybean seeds for our commercial
launch in 2018. On the development side, we have advanced improved
oil composition canola and herbicide tolerant wheat into Phase 1
development. This marks a total of over 19 products in the pipeline
since the company’s inception seven years ago. Our powdery
mildew-resistant wheat - a farmer trait designed to reduce the
amount of fungicides sprayed in the wheat crop - has been harvested
in the field, producing in excess of 300 Lbs. It is hard to believe
we became a publicly traded company only four months ago.”
Corporate highlights
On Track for the Commercialization of High Oleic
Soybeans and Positive Feedback from Potential Customers
Calyxt has produced sufficient quantities of 80% high oleic oil
to be used for pre-commercial product development activities. Early
discussions have started with potential customers expressing
interest in value-added solutions.
The Company completed harvest and produced more high-quality
seeds than needed to meet its 2018 launch plans.
Calyxt continues to make accelerated progress on second
generation products. Years ago, we started a small breeding program
for high oleic soybean varieties. Calyxt’s class of 2021 high oleic
soybean varieties are being advanced to winter nurseries.
Additionally, Calyxt has accessed 60 non-GMO crop varieties
currently under screening for accelerated conversion to high oleic,
using our gene-editing technologies.
Improved Oil Composition Canola and Herbicide-Tolerant Wheat
Product Candidates advance to Phase 1
The Company’s herbicide-tolerant wheat, its third wheat product
candidate, and improved oil composition canola, its first canola
product candidate, have advanced to Phase 1. The development of
this first canola product expands the Company’s improved oils
franchise, in direct line with its mission to create healthier
specialty ingredients and become a preferred partner of the food
industry. This latest milestone is reflective of Calyxt’s rapidly
advancing product pipeline, powered by the Company’s proprietary
gene-editing technology TALEN®, as well as its deep expertise and
innovation in the gene-editing space.
Calyxt’s Powdery Mildew-Resistant Wheat Validated Fungal
Resistance
The Company has completed the inaugural harvest of its powdery
mildew-resistant wheat variety, its first wheat crop, producing in
excess of 300 Lbs. The powdery mildew-resistant wheat is an
advantageous farmer trait designed to reduce the amount of
fungicides sprayed in the wheat crop. This latest milestone is an
important step in the Phase 2 process of the wheat variety, as
Calyxt has confirmed powdery mildew-resistance under controlled
fungal infestation conditions for two wheat varieties already
created: one spring and one winter. Calyxt will now confirm
field-level tolerance and test against additional powdery mildew
biotypes.
Regulatory Environment for Gene-edited Crops
The USDA has recently designated Calyxt’s alfalfa product,
developed in collaboration with S&W Seed Company (NASDAQ:SANW),
as a non-regulated article under “Am I Regulated?” Process by
Biotechnology Regulatory Services of the Animal and Plant Health
Inspection Service (APHIS), an agency of the USDA. This underlines
the trend by the USDA to declare gene-edited crops non-regulated.
With this designation by the USDA, the improved quality alfalfa is
the sixth Calyxt product candidate, developed using Calyxt’s
proprietary gene-editing technology TALEN®, to be confirmed as a
non-regulated article by the USDA, alongside our high oleic
soybean, high oleic / low linolenic soybean, powdery
mildew-resistant wheat, cold storable potatoes and reduced browning
potatoes. We continue to see a positive trend towards regulatory
bodies in the U.S. and globally. We also received approval in Chile
and Argentina for our first soybean submissions.
Calyxt Executes Sale-Leaseback Agreement, Adding $7m to its
Balance Sheet and Breaks Ground on New Concept-to-Fork Facility in
Roseville, Minn.
Calyxt consummated a sale-leaseback transaction concerning its
new headquarters in Roseville, Minn, for a term of 20 years, with
options to extend the term. Pursuant to the previously disclosed
purchase agreement, the Company has received approximately $7
million in connection with the sale of the Property.
The 11-acre site will house Calyxt’s nearly 40,000-square-foot
Company headquarters, state-of-the-art research labs and test
kitchen. The new construction will be adjacent to the recently
completed 11,000+square-foot greenhouses and the existing outdoor
demonstration plots.
Calyxt Closes Initial Public Offering with Full Exercise of
Over-Allotment Option
In July 2017, Calyxt closed its initial public offering of
8,050,000 shares of its common stock at $8.00 per share, including
the exercise in full of the underwriters’ option to purchase
1,050,000 additional shares. Calyxt received $64.4 million in gross
proceeds from the offering.
Financial Highlights
Cash and cash equivalents were $62.5M on September 30, 2017. The
IPO that netted $58M after underwriter discounts and fees of
approximately $6.4M. Cellectis remains our majority shareholder
with 79.8% of the shares. We entered into a sale-leaseback whereby
we sold the land and warehouse to a developer who in turn is
building the custom facility for us. This arrangement netted us
approximately $7M in cash.
In the third quarter, we had an operating cash spend of 1.9M.
The R&D spend for the third quarter, increased $5.2M
year-over-year as we added people to our R&D team and advanced
key products in the portfolio, as described above. With the
completion of the IPO, we also recorded a non-cash expense of $4.8M
for stock option expenses related to grants in 2014 to 2017.
Sales, General & Administration spend for the third quarter
increased $5.2M year-over-year as we built out our management team
and incurred a significant non-cash expense year-to-date of $4.5M
related to stock options granted since 2014. In total for the third
quarter, $9.3M was recorded as a non-cash stock option expense.
We expect cash burn to increase as we hire scientists and built
our commercial capabilities. In addition, we are actively looking
at in-licensing IP, engaging in regulatory activities,
supplementing our knowledge of the food industry and improving our
understanding of customer needs. We expect our current cash
position to be sufficient to fund operations through mid-2019.
Calyxt, Inc.Condensed Balance
Sheets(Amounts in Thousands, Except Share Data and Per Share
Data)
September 30,2017
December 31,2016
(unaudited)
Assets Current assets: Cash and cash equivalents $ 62,545 $
5,026 Trade accounts receivable -- 110 Due from related parties 128
47 Prepaid expenses and other current assets 389
282 Total current assets 63,062 5,465 Property and
equipment, net 12,194 10,994 Other long-term assets 317
164 Total assets $ 75,573 $ 16,623
Liabilities and stockholder’s equity Current
liabilities: Due to related parties $ 3,319 $ 1,712 Accounts
payable 562 357 Accrued salaries, wages, and other compensation 492
332 Accrued liabilities 636 363 Current deferred revenue 78
101 Total current liabilities 5,087 2,865
Non-current deferred revenue 440 639 Finance and capital lease
obligation 7,934 -- Total liabilities
13,461 3,504 Stockholder’s equity: Common stock, $0.0001 par value;
275,000,000 shares authorized, 27,693,130 shares issued and
outstanding as of September 30, 2017 3 2 Preferred stock, $0.0001
par value; 50,000,000 shares authorized, no shares issued or
outstanding -- -- Additional paid-in capital 109,808 41,685
Accumulated deficit (47,699 ) (28,568 ) Total
stockholder’s equity 62,112 13,119
Total liabilities and stockholder’s equity $ 75,573 $ 16,623
Calyxt, Inc.Condensed Statements
of Operations(Amounts in Thousands except Shares Outstanding
and Per Share Amounts)
Three Months Ended September 30,
Nine Months Ended September 30, 2017
2016 2017 2016 (unaudited) Revenue $ 44
$ 105 $ 322 $ 327 Operating expenses: Cost of revenue -- -- -- 200
Research and development 6,438 1,236 9,157 3,912 Selling, general,
and administrative 6,553 1,354
10,141 3,753
Total operating expenses
12,991 2,590 19,298
7,865 Loss from operations (12,947 ) (2,485 ) (18,976
) (7,538 ) Interest income (expense) 48 (2 ) 4 (4 ) Foreign
currency transaction gain (loss) (5 ) (20 )
(159 ) 9 Loss before income taxes (12,904 ) (2,507 )
(19,131 ) (7,533 ) Income tax expense -- --
-- -- Net loss $ (12,904 ) $
(2,507 ) $ (19,131 ) $ (7,533 ) Basic and diluted loss per share $
(0.51 ) $ (0.13 ) $ (0.89 ) $ (0.38 ) Weighted average shares
outstanding—basic and diluted 25,531,572
19,600,000 21,615,703 19,600,000
Calyxt, Inc.Condensed Statements
of Cash Flows(Amounts in Thousands)
Nine Months Ended September 30,
2017 2016 (unaudited)
Operating
activities Net loss $ (19,131 ) $ (7,533 ) Adjustments to
reconcile net loss to net cash used in operating activities:
Depreciation 414 150 Stock-based compensation 9,980 807 Unrealized
transaction gain (loss) on Parent activity (8 ) -- Changes in
operating assets and liabilities: Trade accounts receivable 110 215
Due to/from related parties 1,534 86 Prepaid expenses and other
assets (260 ) (399 ) Accounts payable 205 364 Accrued salaries,
wages, and other compensation 160 (14 ) Accrued liabilities 1,250
136 Deferred revenue (222 ) (141 ) Net cash used in
operating activities (5,968 ) (6,329 )
Investing activities
Purchases of property and equipment (1,614 ) (10,295
) Net cash used in investing activities (1,614 ) (10,295 )
Financing activities Proceeds from common stock issuance
61,292 -- Costs incurred related to the issuance of stock (3,330 )
-- Proceeds from the exercise of stock options 182 -- Advances from
Parent 3,000 -- Repayment of Advances from Parent (3,000 ) --
Finance and Capital Lease Obligation 6,957 --
Net cash provided by financing activities 65,101
--
Net decrease in cash and cash equivalents 57,519 (16,624 )
Cash and cash equivalents—beginning of period 5,026
24,687 Cash and cash equivalents—end of period $
62,545 $ 8,063
Supplemental cash flow
information
Interest paid
$
44
$
4
Supplemental non-cash financing
transactions:
Offering costs in accounts payable and
accrued liabilities
$
2,081
$
--
About Calyxt
Calyxt, Inc. is a consumer-centric, food- and
agriculture-focused company. By combining its leading gene-editing
technology and technical expertise with its innovative commercial
strategy, Calyxt is pioneering a paradigm shift to deliver
healthier food ingredients, such as healthier oils and high fiber
wheat, for consumers and agriculturally advantageous crop traits,
such as herbicide tolerance, for farmers. Calyxt is located in
Minneapolis-St. Paul, MN, and is listed on the Nasdaq market
(ticker: CLXT).
For further information please visit our website:
www.calyxt.comCalyxt™ and the corporate logo are trademarks owned
by Calyxt, Inc.TALEN® is a registered trademark owned by the
Cellectis Group.
Forward-Looking Statements
This communication contains “forward-looking statements” within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. In some cases, you can
identify these statements by forward-looking words such as “may,”
“might,” “will,” “should,” “expects,” “plans,” “anticipates,”
“believes,” “estimates,” “predicts,” “potential” or “continue,” the
negative of these terms and other comparable terminology. These
forward-looking statements, which are subject to risks,
uncertainties and assumptions about us, may include projections of
our future financial performance, our anticipated growth strategies
and anticipated trends in our business. These statements are only
predictions based on our current expectations and projections about
future events. There are important factors that could cause our
actual results, level of activity, performance or achievements to
differ materially from the results, level of activity, performance
or achievements expressed or implied by the forward-looking
statements, including those factors discussed under the caption
entitled “Risk Factors” in our registration statement on Form S-1,
along with our other filings with the U.S. Securities and Exchange
Commission. We do not assume any obligation to publicly provide
revisions or updates to any forward-looking statements, whether as
a result of new information, future developments or otherwise,
should circumstances change, except as otherwise required by
securities and other applicable laws.
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version on businesswire.com: http://www.businesswire.com/news/home/20171113006355/en/
For CalyxtMediaJennifer Moore, 917-580-1088VP
Communicationsmedia@calyxt.comorKCSA Strategic
CommunicationsCaitlin Kasunich / Nick Opich212-896-1241 /
212-896-1206ckasunich@kcsa.com / nopich@kcsa.comorInvestor
RelationsSimon Harnest, 646-385-9008VP Corporate Strategy and
Financesimon.harnest@cellectis.com
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