TEL AVIV, Israel, April 3, 2020 /PRNewswire/ -- Cellect
Biotechnology Ltd. (Nasdaq: APOP), a developer of a novel stem cell
production technology, today announced operating and financial
results for the fourth quarter and full year ended December 31, 2019.
"We achieved a number of strategic priorities in 2019, including
the IND approval to commence our first-ever trial in the U.S.,"
commented Dr. Shai Yarkoni, Chief
Executive Officer. "We plan to begin enrolling patients for
this trial and completing the trial in Israel when the COVID-19 pandemic is
mitigated. While these near-term events are value-enhancers,
I believe that our recently announced prospective partnership with
Canndoc could be a game-changer for Cellect and change our growth
trajectory. It has the potential to significantly enhance our
short and long term business prospects and shareholder value.
As a player in the fast-growing pain management market, we would
anticipate significant revenue opportunities already this
year."
Recent Strategic Development
As previously announced, on March 4,
2020, the Company entered into a commercial binding Letter
Of Intent (LOI) with Canndoc Ltd, a leading pharma grade medical
cannabis pioneer and a wholly owned subsidiary of publicly-traded
Intercure Ltd. (TASE: INCR), to acquire from Canndoc all
rights to the use and sell Canndoc products for the reduction
of opioid usage, including accumulated data, as well as on-going
and pipeline of clinical trials. This commercial arrangement
is subject to negotiation and approval by each company's board of
directors and definitive agreements.
Additionally, the two companies signed a non-binding LOI for a
full merger. Under preliminary details, Cellect will acquire from
Intercure all of Canndoc outstanding shares, in exchange for
additional Cellect ADRs to be in total ~95% (~93% on a fully
diluted basis) of the merged company. The proposed merger is
subject to independent valuation of both companies, fairness
opinion by a third party, negotiation of a definitive agreement,
approval of the agreement by the Company's Board of Directors and
shareholders, internal approvals by Canndoc and Intercure, and
customary closing conditions, including the approval of the IMCA
(Israeli Medical Cannabis Agency). Upon the closing of the merger,
Cellect and Canndoc will aim to fulfill all of the requirements to
ensure the Company's ADRs and warrants continue trading on the
Nasdaq Stock Market (Nasdaq) and, for this purpose, Intercure would
commit to invest a cash sum of at least $3.0
million in any public offering that is undertaken by the
Company, at a price of not less than $4.50 per ADR.
Based on the progress to date, the Company continues to expect
the commercial and merger transactions will close in the second
quarter of 2020.
Additional Operating Highlights:
- The Phase 1/2 clinical trial in Israel has successfully recruited 11 of the 12
patients needed to complete the trial, and subject to COVID-19 and
resumption of normal activities, , the Company anticipates
recruiting the final patient and publishing top line results by the
end of 2020.
- Received all the necessary technology and regulatory approvals,
including an Investigational New Drug (IND) approval from the U.S.
Food and Drug Administration (FDA) to evaluate the safety and
tolerability of the ApoGraft technology for haploidentical bone
marrow transplantations.
- Prior to the delaying of the Cell & Gene Meeting on the
Mediterranean and the International Congress on Autoimmunity due to
the ongoing COVID-19 pandemic, the Company was selected to present
data via oral presentations, further bolstering the Company's
peer-reviewed credentials and growing body of clinical
evidence
- Featured article highlighting the safety and tolerability of
ApoGraft, Company's novel stem cell selection technology was
approved for publication in Bone Marrow Transplantation, a high
quality, peer-reviewed journal published monthly by Nature Research
and covering all aspects of clinical and bone marrow
transplantation
- Expanded intellectual property (IP) portfolio in multiple
jurisdictions. The Company now has 65 patent applications
worldwide, of which 33 are issued/allowed patents, and plans to
continue expanding and protecting its global IP to create further
barriers to entry
- Strengthened the balance sheet through a registered direct
offering of $7.0 million
(February 2019) and a registered
direct offering of $3.0 million
(January 2020), totaling $10 million, before deducting fees and other
offering expenses.
Clinical Progress Update:
Due to the ongoing COVID-19 pandemic, the Company is
experiencing clinical disruption such as:
- In Israel, the recruitment of
patients in the final cohort for the Phase 1/2 clinical trial has
been halted. Previously, the Company had anticipated completion of
this trial in the second quarter of 2020.
- Published mid-study data from the first half of patients was
positive. All patients transplanted using the ApoGraft™ process
were engrafted and time to engraftment was not changed.
-To date, there have not been any safety concerns during the study
and patient enrollment is continuing.
- In the U.S., the Phase 1/2 clinical trial, which was scheduled
to begin enrolling patients in the first half of 2020, is delayed
as major academic centers have suspended trials not affiliated with
COVID-19.
- The Company is collaborating with Washington
University (WU) School of Medicine in St. Louis on the trial.
- A total of 18 patients are planned for the initial phase.
- Completed the technology transfer to WU's facility enabling
the study to initiate immediately after the COVID-19 pandemic is
mitigated.
The Company continues to take all the necessary precautions
advised by global health officials to ensure the health and safety
of its employees and partners. The Company is unaware of any impact
on employees from pandemic related exposure or illness and is
continuing to perform in-house research, including in the
opioid/pain management area.
Fourth Quarter and Full Year 2019 Financial Results:
- Research and development (R&D) expenses for the fourth
quarter and for the full year of 2019 were $0.74 million and $3.51
million respectively, compared to $1.17 million in the fourth quarter of 2018 and
$3.91 million for the full year of
2018. The decrease in R&D expenses for the full year of 2019 as
compared to the full year of 2018 resulted from the reduction in
our research and development activities, as we decreased the number
of our employees engaged in research and related activities.
- General and administrative (G&A) expenses for the fourth
quarter and for the full year of 2019 were $0.69 million and $2.95
million respectively, compared to $1.37 million in the fourth quarter of 2018 and
$4.55 million for the full year of
2018. The decrease in G&A expenses for the full year of 2019 as
compared to the full year of 2018 resulted from the reduction in
management salaries and travel expenses
- Finance expenses for the fourth quarter of 2019 were
$0.33 million, and financial income
was $1.60 million for the full year
of 2019, compared to finance expenses of $1.45 million in the fourth quarter of 2018 and
financial income of $2.64 million for
the full year of 2018, respectively. The financial income in the
full year of 2019 as compared to the financial income in the full
year of 2018 is primarily due to the change in the fair value of
the listed warrants granted in our U.S. initial public offering in
2016 and of the unregistered warrants granted in our registered
direct offerings in 2019.
- Total Comprehensive loss for the fourth quarter and for the
full year of 2019 was $1.76 million
and $4.86 million respectively, or
$0.008 per share for the fourth
quarter and $0.023 per share for the
full year of 2019, respectively, compared to $1.09 million, or $0.008 per share, in the fourth quarter of 2018
and $5.82 million, or $0.045 per share, for the full year of 2018.
Balance Sheet Highlights:
- Cash and cash equivalents totaled $5.24
million as of December 31,
2019, compared to $6.32
million on September 30, 2019,
and $5.15 million on December 31, 2018. The change compared to
December 31, 2018 was primarily due
to the net proceeds of $5.8 million
in a registered direct offering in February
2019, offset by ongoing operational expenses.
- Subsequent to the end of the full year, on January 8, 2020, the Company raised $3.0 million through a registered direct
offering, before deducting fees and other estimated offering
expenses.
- Shareholders' equity totaled $4.29
million as of December 31,
2019, compared to $5.34
million on September 30, 2019,
and $4.03 million on December 31, 2018.
For the convenience of the reader, the amounts have been
translated from NIS into U.S. dollars, at the representative rate
of exchange on December 31, 2019
(U.S. $1 = NIS
3.456).
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 intent regarding the future potential of
Cellect's technology. 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, 2019 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.
|
Cellect Biotechnology
Ltd
|
Consolidated
Statement of Operation
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
|
|
|
Twelve
months
ended
|
|
Twelve months
ended
|
|
Three months
ended
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
Unaudited
|
|
Audited
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
U.S.
dollars
|
|
NIS
|
|
|
(In thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
3,508
|
|
12,122
|
|
13,513
|
|
2,571
|
|
4,040
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
2,954
|
|
10,210
|
|
15,734
|
|
2,378
|
|
4,733
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
6,462
|
|
22,332
|
|
29,247
|
|
4,949
|
|
8,773
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses
(income) due to
warrants exercisable into
ADS
|
|
(2,032)
|
|
(7,022)
|
|
(7,719)
|
|
998
|
|
(4,784)
|
|
|
|
|
|
|
|
|
|
|
|
Other financial
expenses (income), net
|
|
433
|
|
1,498
|
|
(1,415)
|
|
129
|
|
(238)
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss
|
|
4,863
|
|
16,808
|
|
20,113
|
|
6,076
|
|
3,751
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share
|
|
0.023
|
|
0.079
|
|
0.155
|
|
0.027
|
|
0.029
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares
outstanding used to compute basic
and
diluted loss per share
|
|
212,642,505
|
|
212,6432,505
|
|
129,426,091
|
|
224,087,799
|
|
130,274,953
|
|
|
|
Cellect Biotechnology
Ltd
|
|
|
Consolidated Balance
Sheet Data
|
|
|
ASSETS
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
|
Unaudited
|
|
Audited
|
|
Audited
|
|
|
U.S.
dollars
|
|
NIS
|
|
|
(In thousands,
except share and per
share
data)
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
5,239
|
|
18,106
|
|
17,809
|
|
Other
receivables
|
136
|
|
469
|
|
816
|
|
|
|
|
|
|
|
|
|
5,375
|
|
18,575
|
|
18,625
|
|
NON-CURRENT
ASSETS:
|
|
|
|
|
|
|
Restricted
cash
|
95
|
|
328
|
|
337
|
|
Right of use - Assets
under operating lease
|
299
|
|
1,035
|
|
-
|
|
Other long-term
assets
|
27
|
|
94
|
|
132
|
|
Property, plant and
equipment, net
|
373
|
|
1,288
|
|
1,544
|
|
|
|
|
|
|
|
|
|
794
|
|
2,745
|
|
2,013
|
|
|
|
|
|
|
|
|
|
6,169
|
|
21,320
|
|
20,638
|
|
|
|
LIABILITIES
AND
SHAREHOLDERS'
EQUITY
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Trade
payables
|
46
|
|
158
|
|
887
|
|
Leases
liabilities
|
115
|
|
396
|
|
-
|
|
Other
payables
|
891
|
|
3,080
|
|
4,012
|
|
|
1,052
|
|
3,634
|
|
4,899
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Warrants to
ADS
|
628
|
|
2,172
|
|
1,816
|
|
Leases
liabilities
|
196
|
|
677
|
|
-
|
|
|
824
|
|
2,849
|
|
1,816
|
|
EQUITY:
|
|
|
|
|
|
|
Ordinary shares of no
par value:
Authorized: 500,000,000 shares at
December 31, 2018
and December 31 2019; Issued and
outstanding:
130,414,799*) and 224,087,799*)
shares as of
December 31, 2018 and December 31,
2019,
respectively.
|
-
|
|
-
|
|
-
|
|
Additional Paid In
Capital
|
31,423
|
|
108,598
|
|
95,085
|
|
Share-based
payments
|
4,782
|
|
16,528
|
|
12,319
|
|
Treasury
shares
|
(2,727)
|
|
(9,425)
|
|
(9,425)
|
|
Accumulated
deficit
|
(29,185)
|
|
(100,864)
|
|
(84,056)
|
|
|
|
|
|
|
|
|
|
4,293
|
|
14,837
|
|
13,923
|
|
|
|
|
|
|
|
|
|
6,169
|
|
21,320
|
|
20,638
|
|
|
|
*)
Net of 2,641,693 treasury shares of the Company held by the
Company.
|
|
|
|
Cellect Biotechnology
Ltd
|
|
Consolidated Cash
Flow Data
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
months
ended
|
Twelve months
ended
|
|
Three months
ended
|
|
|
|
December
31,
|
December
31,
|
|
December
31,
|
|
|
|
2019
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
Unaudited
|
Audited
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
U.S.
dollars
|
NIS
|
|
|
|
(In
thousands)
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss
|
|
(4,863)
|
(16,808)
|
|
(20,113)
|
|
(6,076)
|
|
(3,751)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net loss to net cash
used in operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Exchange rate
difference
|
|
300
|
1,036
|
|
(1,297)
|
|
(50)
|
|
(380)
|
|
Loss (gain) from
revaluation of financial assets
presented at fair value through
profit and loss
|
|
-
|
-
|
|
(397)
|
|
(8)
|
|
(109)
|
|
Depreciation of Right
of use - Assets under
operating lease
|
|
125
|
433
|
|
-
|
|
(24)
|
|
-
|
|
Depreciation
|
|
108
|
373
|
|
459
|
|
88
|
|
122
|
|
Finance
expenses
|
|
37
|
128
|
|
-
|
|
128
|
|
-
|
|
Issuance
expenses
|
|
469
|
1,621
|
|
-
|
|
1,621
|
|
-
|
|
Changes in fair value
of traded and non traded
warrants to ADS
|
|
(2,501)
|
(8,643)
|
|
(7,719)
|
|
708
|
|
(4,511)
|
|
Share-based
payment
|
|
784
|
2,708
|
|
4,537
|
|
807
|
|
1,290
|
|
Decrease (increase) in
other receivables
|
|
111
|
385
|
|
43
|
|
239
|
|
(214)
|
|
Increase (decrease) in
other payables
|
|
(481)
|
(1,663)
|
|
798
|
|
192
|
|
1,505
|
|
Interest
received
|
|
27
|
93
|
|
54
|
|
168
|
|
7
|
|
Net cash used in
operating activities
|
|
(5,884)
|
(20,337)
|
|
(23,635)
|
|
(2,207)
|
|
(6,041)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Short term deposits,
net
|
|
-
|
-
|
|
387
|
|
-
|
|
105
|
|
Restricted deposit,
net
|
|
3
|
9
|
|
(22)
|
|
9
|
|
-
|
|
Proceeds received from
the sale of fixed assets
|
|
2
|
6
|
|
|
|
6
|
|
|
|
(Purchase) Sales of
marketable securities
measured at fair value through profit
and loss
|
|
-
|
-
|
|
13,999
|
|
-
|
|
-
|
|
Purchase of property,
plant and equipment
|
|
(36)
|
(123)
|
|
(656)
|
|
(3)
|
|
(13)
|
|
Net cash provided by
investing activities
|
|
(31)
|
(108)
|
|
13,708
|
|
12
|
|
92
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Exercise of warrants
and stock options into
shares
|
|
-
|
-
|
|
399
|
|
-
|
|
-
|
|
Repayment on account of
lease liabilities
|
|
(151)
|
(522)
|
|
-
|
|
(101)
|
|
-
|
|
Issue of share capital
and warrants, net of issue
costs
|
|
6,479
|
22,393
|
|
12,360
|
|
(1,330)
|
|
-
|
|
Net cash provided
(used) by financing activities
|
|
6,328
|
21,871
|
|
12,759
|
|
(1,431)
|
|
-
|
|
Exchange differences on
balances of cash and cash equivalents
|
|
(327)
|
(1,129)
|
|
1,243
|
|
(117)
|
|
373
|
|
Increase (decrease) in
cash and cash equivalents
|
|
86
|
297
|
|
4,075
|
|
(3,743)
|
|
(5,576)
|
|
Balance of cash and
cash equivalents at the
beginning of the period
|
|
5,153
|
17,809
|
|
13,734
|
|
21,849
|
|
23,385
|
|
Balance of cash and
cash equivalents at the
end of the period
|
|
5,239
|
18,106
|
|
17,809
|
|
18,106
|
|
17,809
|
|
Contact:
Cellect Biotechnology Ltd.
Eyal Leibovitz, Chief Financial
Officer
www.cellect.co
+972-9-974-1444
or
EVC Group LLC
Michael Polyviou / Todd Kehrli
+1-(732)-933-2754
mpolyviou@evcgroup.com / tkehrli@evcgroup.com
View original
content:http://www.prnewswire.com/news-releases/cellect-biotechnology-reports-fourth-quarter-and-full-year-2019-results-301034781.html
SOURCE Cellect Biotechnology Ltd.