Cellect Biotechnology Ltd Provides Corporate Update and Reports First Quarter 2018 Financial Results

Published: May 17, 2018

TEL AVIV, Israel, May 17, 2018 /PRNewswire/ -- Cellect Biotechnology Ltd. (NASDAQ: APOP), a developer of innovative technology which enables the functional selection of stem cells, today provided a corporate update and announced financial results for the first quarter ended March 31, 2018.

"We are very pleased with our accomplishments in the first quarter of 2018," said Dr. Shai Yarkoni, Chief Executive Officer. "During the first quarter, we announced the results of the first group of patients after a one month follow-up in the clinical trial of Cellect's ApoGraft™ stem cell transplant with 100% acceptance and zero related adverse events, we announced the opening of a second clinical trial site at Hadassah Medical Center and that we received the approval from the Data and Safety Monitoring Board (DSMB) for dose escalation in the clinical trial. We further announced a $4 million registered direct offering."

We believe that 2018 will be a transformative year for Cellect Biotechnology as we engage in business outreach activity while accumulating more clinical data from the Company's ongoing trial and working towards the commencement of a trial in the US.

Recent Corporate Highlights:

  • Successfully completed the proof of concept testing of the Company's first in type new product prototype, ApoTainer™ using Cellect's FasL-coated magnetic beads for maximizing efficacy and scalability of stem cell based products' manufacturing.

First Quarter 2018 Financial Results:

  • Research and development (R&D) expenses for the first quarter of 2018 were $0.81 million, compared to $0.97 million in the fourth quarter of 2017 and $0.80 million in the first quarter of 2017. The decrease in the first quarter of 2018 as compared to the fourth quarter of 2017 was primarily due to a decrease in share-based compensation and payroll bonus.
  • General and administrative (G&A) expenses for the first quarter of 2018 were $0.98 million, compared to $0.97 million in the fourth quarter of 2017 and $0.72 million in the first quarter of 2017. The increase in the first quarter of 2018 as compared to the fourth quarter of 2017 was primarily due to an increase in business development expenses.
  • Finance income for the first quarter of 2018 was $0.78 million, compared to finance income of $0.98 million in the fourth quarter of 2017. The decrease was primarily due to changes related to fair value of the tradable and non-tradable warrants issued in prior financings.
  • Net loss for the first quarter of 2018 was $1.0 million, or $0.008 per share and $0.16 per ADS, compared to $0.96 million, or $0.008 per share and $0.16 per ADS, in the fourth quarter of 2017, and $3.5 million, or $0.039 per share and $0.78 per ADS, in the first quarter of 2017.

Balance Sheet Highlights:

  • Cash and cash equivalents, marketable securities and short-term deposits totaled $9.8 million as of March 31, 2018, compared to $7.9 million on December 31, 2017, and $7.3 million on March 31, 2017. The change in the cash and cash equivalents was primarily due to net proceeds of $3.7 million (after deducting placement agents' fees) raised through a registered direct offering and concurrent private placement completed in January 2018, offset by cash used in operations during the period.
  • Shareholders' equity totaled $7.7 million as of March 31, 2018, compared to $5.4 million on December 31, 2017, and $5.0 million on March 31, 2017.

* 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 March 31, 2018 (U.S. $1 = NIS 3.514).

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 research, hospitals 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 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 our anticipated performance in 2018 and the potential of our technology and its proposed uses. 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, 2017 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

                                                                     Three months              Three months ended

                                            ended

                                                                      March 31,                     March 31,
                                                                      ---------                     ---------

                                                                                          2018                       2018       2017
                                                                                          ----                       ----       ----

                                                                      Unaudited                     Unaudited
                                                                      ---------                     ---------

                                                                     U.S. dollars                      NIS
                                                                     ------------                      ---


    Research and development expenses, net                                                 813                      2,857      2,822


    General and administrative expenses                                                    982                      3,452      2,549



    Total operating loss                                                                 1,795                      6,309      5,371


    Financial expenses (income) due to                                                   (633)                   (2,224)     6,773
      warrants exercisable into ADS


    Other financial expenses (income), net                                               (145)                     (510)       307
                                                                                          ----                       ----        ---


    Total comprehensive loss                                                             1,017                      3,575     12,451
                                                                                         =====                      =====     ======


    Loss per share and ADS:


    Basic and diluted loss per share                                                     0.008                      0.028      0.137
                                                                                         =====                      =====      =====


     Basic and diluted loss per ADS                                                       0.16                       0.56       2.74
                                                                                                                              ====


    Weighted average number of shares                                              126,973,049                126,973,049 91,145,370
      outstanding used to compute basic and
      diluted loss per share

 

 

 

                                                                                         Cellect Biotechnology Ltd.

                                                                                       Consolidated Balance Sheet Data


                                                                                                   ASSETS


                                                                                                                              Convenience

                                                                                                                              translation

                                                                                                                               March 31,                  March 31,           December 31,
                                                                                                                               ---------                  ---------           ------------

                                                                                                                                                 2018                    2018            2017
                                                                                                                                                 ----                    ----            ----

                                                                                                                               Unaudited                  Unaudited             Audited
                                                                                                                               ---------                  ---------             -------

                                                                                                                             U.S. dollars                    NIS
                                                                                                                             ------------                    ---

                                                                                                                      (In thousands, except share and per

                                                                                                                                  share data)

    CURRENT ASSETS:

    Cash and cash equivalents                                                                                                                   7,151                  25,128          13,734

    Marketable securities                                                                                                                       2,703                   9,499          13,999

    Other receivables                                                                                                                             217                     764             818
                                                                                                                                                  ---                     ---             ---


                                                                                                                                               10,071                  35,391          28,551
                                                                                                                                               ------                  ------          ------

    NON-CURRENT ASSETS:

    Restricted cash                                                                                                                               133                     468             305

    Other long-term receivables                                                                                                                    47                     164             173

    Property, plant and equipment, net                                                                                                            399                   1,401           1,344
                                                                                                                                                  ---                   -----           -----


                                                                                                                                                  579                   2,033           1,822
                                                                                                                                                  ---                   -----           -----


                                                                                                                                               10,650                  37,424          30,373
                                                                                                                                               ======                  ======          ======





                                                                                            LIABILITIES AND

                                                                                         SHAREHOLDERS' EQUITY

    CURRENT LIABILITIES:

    Trade payables                                                                                                                                412                   1,446           1,703

    Other payables                                                                                                                                503                   1,768           2,396
                                                                                                                                                  ---                   -----           -----

                                                                                                                                                  915                   3,214           4,099
                                                                                                                                                  ---                   -----           -----

    NON-CURRENT LIABILITIES:

    Warrants to ADS                                                                                                                             2,003                   7,039           7,422
                                                                                                                                                -----                   -----           -----

    EQUITY:

    Ordinary shares of no par value:                                                                                                                -                      -              -
      Authorized: 500,000,000 shares at December 31, 2017
      and March 31, 2018; Issued and outstanding:
      120,185,659*) and  126,973,049*) shares as of
      December 31, 2017 and March 31, 2018, respectively.

       Additional Paid In Capital                                                                                                              27,031                  94,988          82,839

      Share-based payments                                                                                                                      2,597                   9,126           9,381

       Treasury shares                                                                                                                        (2,682)                (9,425)        (9,425)

       Accumulated deficit                                                                                                                   (19,214)               (67,518)       (63,943)
                                                                                                                                              -------                 -------         -------


                                                                                                                                                7,732                  27,171          18,852
                                                                                                                                                -----                  ------          ------


                                                                                                                                               10,650                  37,424          30,373
                                                                                                                                               ======                  ======          ======


    *)            Net of 2,641,693 treasury shares of the Company held by the Company.
 

 

 

                                                     Cellect Biotechnology Ltd.

                                                    Consolidated Cash Flow Data


                                                                            Convenience

                                                                            translation

                                                                            Three months         Three months ended

                                                                               ended

                                                                             March 31,               March 31,
                                                                             ---------               ---------

                                                                                            2018                 2018       2017
                                                                                            ----                 ----       ----

                                                                             Unaudited               Unaudited
                                                                             ---------               ---------

                                                                            U.S. dollars                NIS
                                                                            ------------                ---


    Cash flows from operating activities:
    -------------------------------------

    Total comprehensive loss                                                             (1,017)             (3,575)  (12,451)
                                                                                          ------               ------    -------


    Adjustments to reconcile net loss to net
         cash used in operating activities:

    Net financing expenses                                                                 (149)               (523)       324

    Loss from revaluation of financial assets                                                  -                   -       176
         presented at fair value through profit and
         loss

    Depreciation                                                                              30                  105         90

    Share-based payment                                                                      355                1,247        847

    Changes in fair value of traded and not                                                (710)             (2,496)     6,773
         traded warrants to ADS

    Decrease (increase) in other receivables                                                  18                   63       (44)

    Increase (decrease) in other payables                                                  (259)               (911)     (892)

    Interest received                                                                          -                   -         9
                                                                                             ---                 ---       ---

    Net cash used in operating activities                                                (1,732)             (6,090)   (5,168)
                                                                                          ------               ------     ------


    Cash flows from investing activities:
    -------------------------------------

    Short term deposits, net                                                                   -                   -     1,510

    Restricted deposit                                                                      (46)               (163)         -

    Marketable securities measured at fair value                                           1,280                4,500      2,808
         through profit and loss, net

    Purchase of property, plant and equipment                                               (40)               (140)      (69)
                                                                                                                           ---

    Net cash provided by investing activities                                              1,194                4,197      4,249
                                                                                           -----                -----      -----


    Cash flows from financing activities:
    -------------------------------------

    Exercise of warrants and stock options into                                              114                  399        643
         shares

     Issue of share capital and warrants, net of                                           3,518               12,365          -
    issue costs


    Net cash provided by financing activities                                              3,632               12,764        643
                                                                                           -----               ------        ---

    Exchange differences on balances of cash                                                 149                  523      (333)
         and cash equivalents

    Increase (decrease) in cash and cash                                                   3,243               11,394      (609)
         equivalents

    Balance of cash and cash equivalents at the                                                               13,734      6,279
         beginning of the period
                                                                                           3,908
                                                                                           -----

    Balance of cash and cash equivalents at                                                                   25,128      5,670
         the end of the period
                                                                                           7,151
                                                                                           =====

 

Contact

Cellect Biotechnology Ltd.
Eyal Leibovitz, Chief Financial Officer
www.cellect.co
+972-9-974-1444

 

 

 

 

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SOURCE Cellect Biotechnology Ltd.

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