90% of High-Oleic Soybean Acres Harvested
To-Date in Fall 2018
Over 17,000 High-Oleic Soybean Acres
Contracted for 2019 Growing Season Already Exceeding Last Year’s
Acres
Agreement with American Natural Processors
to Crush and Process High-Oleic Soybeans
Agreement with KemX Global to Refine
High-Oleic Soybean Oil – Refining Capacity to Scale Up
30 Food Companies Engaged – 3 in Advanced
Discussions
Successful Harvest of High-Fiber Wheat Field
Trials
Appointed new CEO, Jim Blome, Former
President & CEO of Bayer CropScience LP
Cash and Cash Equivalents Position of
$101.8M as of September 30, 2018
Calyxt, Inc. (NASDAQ:CLXT), a consumer-centric, food- and
agriculture-focused company, today announced its results for the
three- and nine-month periods ended September 30, 2018.
Investor Call Details
Calyxt will host an investor call on November 14, 2018 at 8:00
am Eastern Time – 7:00 am Central Time to discuss its financial
results and provide a general business update.
The live dial-in information for the conference call is:
US & Canada only: 877-407-9747International:
412-902-0044
In addition, a replay of the call will be available until May
14, 2019 by calling 877-660-6853 (Toll Free US & Canada);
201-612-7415 (Toll Free International).
Webcast URL (Archived for 6 months): http://bit.ly/2DbCETf
“The third quarter of 2018 was an exciting and crucial time for
Calyxt to take important steps towards the commercialization of our
lead product candidate, a non-GMO, high oleic soybean variety,
designed to yield soybean oil with over 80% oleic oil content that
is completely trans-fat free. Our partnerships with American
Natural Processors, which will crush and process our high-oleic
soybeans, and KemX Global, which will refine our oil, will position
us to grow significantly. On the farmer side, we are hitting the
ground running with our upcoming high-oleic soybean growing season.
I am pleased to announce that within the first few weeks of
contracting for 2019, we have already surpassed Calyxt’s acreage
for all of 2018. On the food customer front, we are in discussions
with over 30 food companies, from small to multi-national. In
summary, I can say that we are well on track to becoming a real
commercial player,” said Jim Blome, newly appointed CEO of Calyxt.
“Furthermore, I am beyond thrilled to be a part of such an amazing
team at this very moment in time, ringing in a new era in the field
of agriculture. Our TALEN®-technology platform, our world class
scientists and lab facilities, our U.S. regulatory position and our
extensive IP assets are just some of the reasons that enticed me to
take on this new role. In addition, our product pipeline is
well-suited for today’s consumer trends demanding healthier diets,
food supply transparency, improved taste and the sustainability of
food production by lowering inputs and waste.”
High Oleic Soybean Update:
- 90% of acres planted in 2018 have
been harvested. The harvest is anticipated to be complete by
the end of November.
- 2019 acreage contracting kicked off
to a strong start. In the first few weeks, we contracted over
17,000 acres for the 2019 growing season, already surpassing the
total acreage of 2018, with the goal to double this acreage size in
2019. We will take thoughtful considerations for any additional
growth in certain regions.
- Agreement with American Natural
Processors (ANP), a leading provider of innovative non-GMO and
organic processing of oils, flours and meals, to crush Calyxt’s
high-oleic soybean variety, and produce the Company’s high oleic
soybean oil, its first product expected to hit the market in late
2018 / early 2019.
Agreement with KemX Global, a leading provider of
innovative organic processing of oils, to refine Calyxt’s
high-oleic soybean oil. KemX Global’s organic, non-GMO-certified
Iowa plant positions Calyxt to work with multiple crush plants in
the Midwest region and positions Calyxt’s supply chain for the
production of our food-grade high-oleic soybean oil.
- 30 food companies engaged – 3 in
advanced discussions. Ongoing confidential negotiations with 3
potential customers for spot purchase and annual supply agreement.
We expect to share more details soon.
Pipeline Update:
- Completion of inaugural harvest of
high-fiber wheat product, world’s first gene-edited,
consumer-focused wheat product. The high-fiber wheat product is
already the seventh Calyxt product that has been deemed
non-regulated by the U.S. Department of Agriculture (USDA),
together with powdery mildew-resistant wheat, high-oleic soybeans,
high-oleic / low-linoleic soybeans, improved quality alfalfa, cold
storable potatoes and reduced browning potatoes.The high-fiber
wheat product recently transitioned from Phase I to Phase II in
Calyxt’s development process and is on track for commercialization
as early as 2020 / 2021. In the next year, the Company is set to
further confirm the product concept in field conditions and will
complete food application studies.
Corporate Update:
- Appointment of new CEO: James
(Jim) A. Blome, former President and CEO of Bayer CropScience LP
(North America), joined Calyxt as Chief Executive Officer,
effective October 1, 2018. The entire Calyxt team is looking
forward to working with Jim on the upcoming commercial launch of
Calyxt’s first product, high-oleic soybean oil and to advancing its
entire product pipeline.Jim Blome is a high-impact, global leader
with over 25 years of leadership experience in the agriculture
industry. Before his position as President and CEO for Bayer
CropScience LP, Jim held executive positions at Valent (Sumitomo
Chemical) and Agriliance LLC. Jim serves as the Chairman of
CropLife America, the Chairman of U.S. Farming and Ranching
Foundation, and the Independent, Non-Executive Chairman of
Concentric Ag Technologies, Inc. Jim is the 2013 recipient of the
Henry A. Wallace Award from Iowa State University for outstanding
leadership and service to agriculture. Jim grew up on a family corn
and soybean farm in Hubbard, Iowa and a graduate of Iowa State
University.
- Appointment of new Supply Chain
Manager: As of October 15, 2018, Aaron Snyder joined the Calyxt
team as Supply Chain Manager, responsible for procuring all
materials necessary for production, as well as overseeing shipping
operations, and implementing and managing new planning processes.
Prior to joining Calyxt, Aaron spent eight years building supply
chain systems in Cargill’s Food Ingredients Businesses Group Most
recently Aaron served as a supply chain manager at Cargill,
responsible for the sales and operations strategy across the North
American region in bulk and pack.
- Additions to the Board of
Directors: Christopher J. Neugent, Executive Vice President of
Strategy of Post Holdings, Inc., has nearly three decades of
experience in the consumer packaged goods and food industries,
including as President and CEO of Post Consumer Brands and as
Chairman and CEO of MOM Brands, which was purchased by Post
Holdings in 2015. Christopher joined Calyxt’s board of directors as
of September 11, 2018.Jonathan Fassberg is the founder of the Trout
Group and currently Co-Chief Executive Officer of Solebury Trout, a
leading investor relation firm. Jonathan joined Calyxt’s board of
directors as of August 22, 2018.Dr. Yves Joseph Ribeill, founded
SCYNEXIS, Inc and served as its President and CEO from 1999 to
2015. Dr. Ribeill has more than 35 years of experience in the
healthcare industry and was a member of the Scientific Advisory
Committee of the World Health Organization, the Medicines for
Malaria Venture and is currently Vice Chairman of the Triangle
Global Health Consortium in North Carolina. Yves joined Calyxt’s
board of directors as of July 3, 2018.
Financial Highlights
Cash and cash equivalents were $101.8 million at September 30,
2018. We intend to continue to judiciously manage the use of cash
and expect to have sufficient cash to fund the business until late
2020.
For the three months ended September 30, 2018, we incurred
losses from operations of $7.7 million and used net cash in
operating activities of $4.8 million.
For the nine months ended September 30, 2018, we incurred losses
from operations of $19.5 million and used net cash in operating
activities of $13.6 million. Our cash spend for the first nine
months of 2018 can be broken into 3 categories:
- to support our rich product pipeline
and build our strong portfolio of proprietary intellectual
property;
- to prepare for the launch of our
high-oleic soybeans, which includes spending on seed production and
commercial activities such as seed sales, grain deliveries, and
agronomic, logistic and commercial supports;
- and to strengthen our general and
administration support, including strengthening our IT systems,
hiring talented personnel, maintaining public company reporting
compliance, refining internal controls and maintaining our
intellectual property.
We anticipate that our operating cash spend will be in the range
of $2.0 million per month on average in 2018.
Calyxt, Inc. Condensed Balance Sheets
(Amounts in Thousands, Except Share Data and Per Share Data)
September 30, December 31,
2018 2017 (unaudited)
Assets Current assets:
Cash and cash equivalents $ 101,796 $ 56,664 Restricted cash 50 —
Trade accounts receivable — — Due from related parties 166 167
Prepaid expenses and other current assets 967
626 Total current assets 102,979 57,457 Property and
equipment, net 21,305 14,353 Other long-term assets 341
357 Total assets $ 124,625 $
72,167
Liabilities and stockholders’ equity
Current liabilities: Due to related parties $ 1,937 $ 1,350
Accounts payable 1,240 1,023 Accrued salaries, wages, and other
compensation 1,016 945 Accrued liabilities 2,669 893 Current
deferred revenue 7 43 Total current liabilities 6,869
4,254 Non-current deferred revenue 91 289 Finance lease obligations
and other long term liabilities 17,433 10,148 Total
liabilities 24,393 14,691 Stockholders’ equity:
Common stock, $0.0001 par value;
275,000,000 shares authorized, 32,463,407 and 27,718,780shares
issued and outstanding as of September 30, 2018 and December 31,
2017, respectively
3 3 Preferred stock, $0.0001 par value; 50,000,000 shares
authorized, no sharesissued or outstanding as of September 30, 2018
and December 31, 2017, respectively — — Additional paid-in
capital 174,206 112,021 Accumulated deficit (73,977 ) (54,548 )
Total stockholders’ equity 100,232
57,476 Total liabilities and stockholders’
equity $ 124,625 $ 72,167
Calyxt,
Inc. Condensed Statements of Operations (Amounts in
Thousands except Shares Outstanding and Per Share Amounts)
Three Months Ended Nine Months Ended
September 30, September 30, 2018
2017 2018
2017 (unaudited) (unaudited) Revenue $ 27 $ 44
$ 234 $ 322 Operating expenses: Cost of revenue — — — — Research
and development 3,307 6,438 7,493 9,157 Selling, general, and
administrative 4,419 6,553
12,228 10,141 Total operating expenses
7,726 12,991 19,721
19,298 Loss from operations (7,699 ) (12,947 ) (19,487 )
(18,976 ) Interest income, net 228 48 88 4 Foreign currency
transaction loss (12 ) (5 ) (30 ) (159
) Loss before income taxes (7,483 ) (12,904 ) (19,429 ) (19,131 )
Income tax expense — — —
— Net loss $ (7,483 ) $ (12,904 ) $ (19,429 ) $
(19,131 ) Basic and diluted loss per share $ (0.23 ) $ (0.51 ) $
(0.65 ) $ (0.89 ) Weighted average shares outstanding—basic and
diluted $ 32,381,010 $ 25,531,572 $ 30,040,926
$ 21,615,703
Calyxt, Inc. Condensed Statement of Stockholders’
Equity (Amounts in Thousands except Shares Outstanding)
SharesOutstanding
CommonStock
AdditionalPaid-InCapital
AccumulatedDeficit
TotalStockholders’Equity
Balances at December 31, 2017 27,718,780 $ 3 $ 112,021 $ (54,548 )
$ 57,476 Net loss — (19,429 ) (19,429 ) Common shares issued
upon exercise of options and other 687,127 2,128 2,128 Stock-based
compensation — 3,016 3,016 Issuance of common stock
4,057,500 57,041
57,041 Balances at September 30,
2018 (unaudited) 32,463,407 $ 3 $ 174,206 $ (73,977 ) $ 100,232
Calyxt, Inc. Condensed Statements of Cash
Flows (Amounts in Thousands) Nine
Months Ended September 30, 2018
2017 (unaudited)
Operating
activities Net loss $ (19,429 ) $ (19,131 ) Adjustments to
reconcile net loss to net cash used in operating activities:
Depreciation 727 414 Stock-based compensation 3,016 9,980
Unrealized transaction gain (loss) on related party activity 12 (8
) Changes in operating assets and liabilities: Trade accounts
receivable — 110 Due to/from related parties 576 1,534 Prepaid
expenses and other assets (325 ) (260 ) Accounts payable 217 205
Accrued salaries, wages, and other compensation 70 160 Accrued
liabilities 1,770 1,250 Deferred revenue (234 ) (222
) Net cash used in operating activities (13,600 ) (5,968 )
Investing activities Purchases of property and
equipment, net (830 ) (1,614 ) Net cash used in
investing activities (830 ) (1,614 )
Financing
activities Advances from Cellectis — 3,000 Repayment of
advances from Cellectis — (3,000 ) Costs incurred related to the
issuance of stock (222 ) (3,330 ) Proceeds from common stock
issuance 57,706 61,292 Proceeds from the exercise of stock options
2,128 182 Financing lease obligation — 6,957
Net cash provided by financing activities 59,612
65,101 Net increase in cash, cash
equivalents and restricted cash 45,182 57,519 Cash, cash
equivalents and restricted cash—beginning of period 56,664
5,026 Cash, cash equivalents and
restricted cash—end of period $ 101,846 $ 62,545
Supplemental cash flow information Interest paid $
856 $ 44 Supplemental non-cash investing and financing
transactions: Property and equipment included in financing lease
obligations $ 6,849 — Offering costs in accounts payable and
accrued liabilities $ 443 $ 2,081
The following presents cash, cash
equivalents and restricted cash by category within the condensed
balance sheet:
Cash and cash equivalents $ 101,796 $ 62,545 Restricted cash
50 — Total $ 101,846 $ 62,545
About Calyxt
Calyxt, Inc. is a consumer-centric, food- and
agriculture-focused company. Calyxt is pioneering a paradigm shift
to deliver healthier food ingredients, such as healthier oils and
high fiber wheat, for consumers and crop traits that benefit the
environment and reduce pesticide applications, such as disease
tolerance, for farmers. Calyxt develops non-transgenic crops
leveraging processes that occur in nature by combining its leading
gene-editing technology and technical expertise with its innovative
commercial strategy. 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 S.A.
Calyxt 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 Annual Report on Form 10-K, 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
applicable laws.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181113006184/en/
MediaJennifer Moore, VP CommunicationsPhone:
917-580-1088email: media@calyxt.com
Caitlin Kasunich / Nick OpichKCSA Strategic
Communications212.896.1241 / 212.896.1206email: ckasunich@kcsa.com
/ nopich@kcsa.com
Investor RelationsSimon Harnest, VP Corporate Strategy
and FinancePhone: 646-385-9008email: simon.harnest@calyxt.com
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