TEL AVIV, Israel, Aug. 12, 2020 /PRNewswire/ -- Cellect
Biotechnology Ltd. (NASDAQ: APOP), a developer of innovative
technology which enables the functional selection of stem cells,
today reported financial and operating results for the second
quarter ended June 30, 2020.
The Company's six-month progress includes the development of
several strategic initiatives, including growth-oriented
opportunities in pain management and COVID-19 related
therapeutics.
"Despite the COVID-19 pandemic business disruptions and the
near-term delays to completing and commencing our clinical programs
in Israel and the U.S.,
respectively, we acted swiftly over the past few months to leverage
our sought-after technology to create several long-term business
initiatives to enhance our value," commented Dr. Shai Yarkoni, Chief Executive Officer. "In
addition to pursuing a potential merger with a global leader in the
high growth medical-grade cannabis market, which is being delayed
due to COVID-19, we have either initiated or are contemplating
other business development activities that will greatly
benefit from our innovation, technology and know-how. I believe
each of these opportunities represents meaningful catalysts for
Cellect in multi-billion-dollar markets, subject to resolution of
the COVID-19 pandemic and return to normal course of
business."
Notwithstanding the continued delays due to COVID-19, the
Company remains focused on the following operational and clinical
objectives:
- Recruit the final patient in the Israel trial, as soon as practically allowed,
and publish the primary endpoint results six months later
- Commence the U.S. trial immediately upon resumption of normal
business practices since the Company has already received the
regulatory and institutional approvals to proceed
- Highlight its stem cell thought leadership by presenting at two
upcoming prestigious conferences – the Cell & Gene Meeting on
the Mesa (October) and the International Congress on Autoimmunity
(November), both being held virtually
- Progress the scale-up process to complete robust, automated,
close compartment Apograft process through clinically approved
medical devices
The Company's cash and cash equivalents totaled $7 million as of June 30,
2020, which includes the approximately $1.5 million (gross before
expenses) resulting from several investors exercising certain
warrants that were issued in February
2019.
Second Quarter 2020 Financial Results:
- Research and development (R&D) expenses for the
second quarter of 2020 were $0.39
million, compared to $0.44
million in the first quarter of 2020 and $1.03 million in the second quarter of 2019.
The decrease in the second quarter of 2020 as compared to the first
quarter of 2020 was primarily due decrease in clinical activities
as a result of the COVID-19.
- General and administrative (G&A) expenses for the second
quarter of 2020 were $0.61 million,
compared to $0.75 million in the
first quarter of 2020 and $0.78
million in the second quarter of 2019. The decrease in the
second quarter of 2020 as compared to the first quarter of 2020 was
primarily due to the decrease in professional expenses.
- Finance expenses for the second quarter of 2020 was
$1.54 million, compared to finance
income of $0.45 million in the first
quarter of 2020. The change was primarily due to changes related to
the fair value of the tradable and non-tradable warrants issued in
a prior fundraising.
- Net loss for the second quarter of 2020 was $2.54 million, or $0.007 per share, compared to $0.74 million, or $0.002 per share, in the first quarter of 2020,
and $0.24 million, or $0.001 per share, in the second quarter of
2019.
* For the convenience of the reader, the amounts above have
been translated from NIS into U.S. dollars, at the representative
rate of exchange on June 30, 2020
(U.S. $1 = NIS
3.466).
About Cellect Biotechnology Ltd.
Cellect Biotechnology (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; the Company's ability to
retain or attract key employees whose knowledge is essential to the
development of its products; and the Company's ability to pursue
any strategic transaction or that any transaction, if pursued, will
be completed. 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
|
|
|
|
|
|
|
|
|
|
|
Six
months
ended
|
|
Six months
ended
|
|
Three months
ended
|
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
Unaudited
|
|
Unaudited
|
|
|
U.S.
dollars
|
|
NIS
|
|
|
(In thousands,
except share and per
share
data)
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
837
|
|
2,901
|
|
7,086
|
|
1,364
|
|
3,564
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
1,356
|
|
4,703
|
|
5,064
|
|
2,116
|
|
2,709
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
2,193
|
|
7,604
|
|
12,150
|
|
3,480
|
|
6,273
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses
(income) due to
warrants exercisable into shares
|
|
1,098
|
|
3,807
|
|
(7,111)
|
|
4,697
|
|
(5,919)
|
|
|
|
|
|
|
|
|
|
|
|
Other financial
expenses (income), net
|
|
(15)
|
|
(55)
|
|
880
|
|
627
|
|
462
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss
|
|
3,276
|
|
11,356
|
|
5,919
|
|
8,804
|
|
816
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share
|
|
0.010
|
|
0.034
|
|
0.029
|
|
0.024
|
|
0.004
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares
outstanding used to compute basic and
diluted loss per share
|
|
338,182,275
|
|
338,182,275
|
|
200,942,871
|
|
365,428,101
|
|
224,087,799
|
Cellect Biotechnology
Ltd.
|
Consolidated Balance
Sheet Data
|
|
|
Convenience
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
December
31,
|
|
|
2020
|
|
2020
|
|
2019
|
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
|
U.S.
dollars
|
|
NIS
|
|
|
(In thousands,
except share and per
share
data)
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
7,002
|
|
24,269
|
|
18,106
|
|
Other
receivables
|
277
|
|
960
|
|
469
|
|
|
|
|
|
|
|
|
|
7,279
|
|
25,229
|
|
18,575
|
|
NON-CURRENT
ASSETS:
|
|
|
|
|
|
|
Restricted
cash
|
95
|
|
330
|
|
328
|
|
Right of use - Assets
under operating lease
|
262
|
|
908
|
|
1,035
|
|
Other long-term
receivables
|
22
|
|
76
|
|
94
|
|
Property, plant and
equipment, net
|
314
|
|
1,087
|
|
1,288
|
|
|
|
|
|
|
|
|
|
693
|
|
2,401
|
|
2,745
|
|
|
|
|
|
|
|
|
|
7,972
|
|
27,630
|
|
21,320
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Trade
payables
|
121
|
|
420
|
|
158
|
|
Other
payables
|
622
|
|
2,158
|
|
3,080
|
|
Current maturities of
lease liability
|
120
|
|
416
|
|
396
|
|
|
863
|
|
2,994
|
|
3,634
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Warrants to
ADS
|
666
|
|
2,307
|
|
2,172
|
|
Lease
liability
|
155
|
|
538
|
|
677
|
|
|
821
|
|
2,845
|
|
2,849
|
|
EQUITY:
|
|
|
|
|
|
|
Ordinary shares of no
par value: Authorized:
500,000,000 shares at December 31, 2019
and June 30, 2020; Issued and outstanding:
224,087,799*) and 390,949,079*) shares as of
December 31, 2019 and June 30, 2020,
respectively.
|
-
|
|
-
|
|
-
|
|
Additional Paid in Capital
|
36,595
|
|
126,839
|
|
108,598
|
|
Share-based
payments
|
4,789
|
|
16,597
|
|
16,528
|
|
Treasury
shares
|
(2,719)
|
|
(9,425)
|
|
(9,425)
|
|
Accumulated deficit
|
(32,377)
|
|
(112,220)
|
|
(100,864)
|
|
|
|
|
|
|
|
|
|
6,288
|
|
21,791
|
|
14,837
|
|
|
|
|
|
|
|
|
|
7,972
|
|
27,630
|
|
21,320
|
|
*)
Net of 2,641,693 treasury shares of the Company held by the
Company.
|
Cellect Biotechnology
Ltd.
|
Consolidated Cash
Flow Data
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
|
|
|
|
Six
months
ended
|
Six months
ended
|
|
Three months
ended
|
|
|
|
June
30,
|
June
30,
|
|
June
30,
|
|
|
|
2020
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
Unaudited
|
Unaudited
|
|
|
|
U.S.
dollars
|
NIS
|
|
|
|
(In
thousands)
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss
|
|
(3,276)
|
(11,356)
|
|
(5,919)
|
|
(8,804)
|
|
(816)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net loss to net
cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
|
Exchange rate
difference
|
|
1
|
5
|
|
-
|
|
700
|
|
-
|
|
Net financing
expenses
|
|
11
|
37
|
|
815
|
|
18
|
|
443
|
|
Loss (gain) from
revaluation of financial
assets presented at fair value through
profit and loss
|
|
-
|
-
|
|
6
|
|
-
|
|
2
|
|
Depreciation
|
|
49
|
170
|
|
192
|
|
84
|
|
94
|
|
Changes in fair value
of traded and not
traded warrants
|
|
1,098
|
3,807
|
|
(8,442)
|
|
4,697
|
|
(5,895)
|
|
Share-based
payment
|
|
239
|
829
|
|
529
|
|
468
|
|
744
|
|
Decrease (increase) in
other receivables
|
|
(136)
|
(473)
|
|
145
|
|
(544)
|
|
75
|
|
Increase (decrease) in
other payables
|
|
(217)
|
(753)
|
|
(715)
|
|
(1,621)
|
|
(730)
|
|
Decrease in
right-of-use assets
|
|
53
|
183
|
|
314
|
|
92
|
|
200
|
|
Interest received
during the period
|
|
10
|
35
|
|
(46)
|
|
23
|
|
(46)
|
|
Net cash used in
operating activities
|
|
(2,168)
|
(7,516)
|
|
(13,121)
|
|
(4,887)
|
|
(5,929)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Restricted cash,
net
|
|
(1)
|
(2)
|
|
-
|
|
2
|
|
-
|
|
Sale (Purchase) of
property, plant and equipment
|
|
9
|
31
|
|
(120)
|
|
(3)
|
|
-
|
|
Net cash provided by
investing activities
|
|
8
|
29
|
|
(120)
|
|
(1)
|
|
-
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Exercise of warrants
and stock options into
shares
|
|
1,358
|
4,707
|
|
-
|
|
4,684
|
|
-
|
|
Leases
liabilities
|
|
(61)
|
(212)
|
|
(278)
|
|
(108)
|
|
(178)
|
|
Issue of share capital
and warrants, net of
issue costs
|
|
2,652
|
9,194
|
|
23,723
|
|
71
|
|
(1,114)
|
|
Net cash provided
(used) by financing
activities
|
|
3,949
|
13,689
|
|
23,445
|
|
4,647
|
|
(1,292)
|
|
Exchange differences on
balances of cash
and cash equivalents
|
|
(11)
|
(39)
|
|
(769)
|
|
(721)
|
|
(397)
|
|
Increase (decrease) in
cash and cash
equivalents
|
|
1,778
|
6,163
|
|
9,435
|
|
(962)
|
|
(7,618)
|
|
Balance of cash and
cash equivalents at the
beginning of the period
|
|
5,224
|
18,106
|
|
17,809
|
|
25,231
|
|
34,862
|
|
Balance of cash and
cash equivalents at
the end of the period
|
|
7,002
|
24,269
|
|
27,244
|
|
24,269
|
|
27,244
|
|
Contact
Cellect Biotechnology Ltd.
Eyal Leibovitz, Chief Financial
Officer
www.cellect.co
+972-9-974-1444
Or
EVC Group LLC
Michael Polyviou
(732) 933-2754
mpolyviou@evcgroup.com
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content:http://www.prnewswire.com/news-releases/cellect-biotechnology-reports-second-quarter-financial-and-operating-results-first-half-2020-strategic-developments-create-long-term-revenue-catalysts-301110743.html
SOURCE Cellect Biotechnology Ltd.