Cellect Biotechnology to Explore Strategic Alternatives to Maximize Shareholder Value
May 16 2019 - 7:00AM
Following a review of its business, including the status of its
clinical and development programs, resources and capabilities,
Cellect Biotechnology Ltd. (Nasdaq: APOP) plans to explore
strategic alternatives focused on maximizing shareholder value.
Potential strategic alternatives that may be evaluated
include, but are not limited to, an acquisition, merger, business
combination, in-licensing, or other strategic transaction involving
the Company or its assets.
Due to a recent and unanticipated delay in the
planned filing of the Company’s Investigational New Drug (IND)
application for its human ApoGraft trial in the United States, the
Company now believes the trial is expected to commence sometime
during the first half of 2020, a delay of up to half a year. This
factor combined with the erosion in the Company’s stock price is
believed to severely limit the Company’s financing options and the
Company believes that rather than undertake an extremely dilutive
financing in the near term, it is in the best interests of the
Company’s shareholders to explore strategic alternatives. The
Company is in the process of retaining a financial advisor to
assist it in the process.
To conserve cash, the Company also intends to
reduce its operating costs and implement a reduction in workforce
while concentrating its resources on its essential research and
development activities. The Company is continuing to advance its
ongoing clinical trial in Israel and work towards the filing of an
IND for its planned clinical trial in the United States.
There can be no assurance that this strategic
review process will result in the Company pursuing any transaction
or that any transaction, if pursued, will be completed. The Company
does not intend to discuss or disclose further developments
regarding the strategic review process unless and until its Board
of Directors has approved a specific action or otherwise determined
that further disclosure is appropriate or required by law.
About Cellect Biotechnology Ltd.
Cellect Biotechnology (Nasdaq: APOP) has
developed a breakthrough technology, for the selection of stem
cells from any given tissue, that aims to improve a variety of stem
cell-based therapies.
The Company's technology is expected to provide
researchers, clinical community and pharma companies with the tools
to rapidly isolate stem cells in quantity and quality allowing stem
cell-based treatments and procedures in a wide variety of
applications in regenerative medicine. The Company's current
clinical trial is aimed at bone marrow transplantations in cancer
treatment.
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 Cellect's expectations
regarding timing of the commencement of its planned U.S. clinical
trial and its plan to reduce operating costs. 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: the Company's history of losses and needs for
additional capital to fund its operations and its inability to
obtain additional capital on acceptable terms, or at all; the
Company's ability to continue as a going concern; uncertainties of
cash flows and inability to meet working capital needs; the
Company's ability to obtain regulatory approvals; the Company's
ability to obtain favorable pre-clinical and clinical trial
results; the Company's technology may not be validated and its
methods may not be accepted by the scientific community;
difficulties enrolling patients in the Company's clinical trials;
the ability to timely source adequate supply of FasL; risks
resulting from unforeseen side effects; the Company's ability to
establish and maintain strategic partnerships and other corporate
collaborations; the scope of protection the Company is able to
establish and maintain for intellectual property rights and its
ability to operate its business without infringing the intellectual
property rights of others; competitive companies, technologies and
the Company's industry; unforeseen scientific difficulties may
develop with the Company's technology; and the Company's ability to
retain or attract key employees whose knowledge is essential to the
development of its products. 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, 2018
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.
Contact Cellect Biotechnology
Ltd. Dr. Shai Yarkoni, Chief Executive Officer
www.cellect.co +972-9-974-1444
Or
EVC Group LLC Michael Polyviou / Sarah Scouten, PhD
(732) 933-2754 / (716) 352-7379 cellect@evcgroup.com /
sscouten@evcgroup.com
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