Cellect Biotechnology Reports Second Quarter 2021 Financial and Operating Results
24 Agosto 2021 - 3:16PM
Cellect Biotechnology Ltd. (NASDAQ: "APOP"), a developer of
innovative technology that enables the functional selection of stem
cells, today reported financial and operating results for the
second quarter ended June 30, 2021, and provided an update on the
proposed strategic merger with privately-held Quoin Pharmaceuticals
and recent clinical news
On August 12, the Securities and Exchange
Commission (SEC) declared effective the Company’s Form F-4 in
connection with the proposed strategic merger with Quoin
Pharmaceuticals. Quoin is a specialty pharmaceutical company
focused on rare and orphan diseases. Quoin’s leadership team is
made up of industry veterans, with extensive relevant executive
experience and proven records of recent success in the
pharmaceutical industry. Additional information regarding the
proposed strategic merger can be found in the proxy statement that
was been filed with the SEC.
The Company has scheduled a Special General
Meeting of Shareholders on September 19, 2021, to vote on the
proposed strategic merger, and all shareholders and American
Depositary Share (the “ADSs”) holders of Cellect Biotechnology Ltd.
as of close of business on August 19, 2021, are entitled to vote at
the special meeting.
Second Quarter and Recent Clinical
Highlights
- Reported positive data from the Company's open label Phase 1/2
clinical trial of its ApoGraft™ technology in Israel:
- All eleven patients enrolled for the trial were successfully
transplanted
- The primary objective, safety and tolerability was met and
there was no procedure related adverse events (AEs) reported during
the course of the study
“I am pleased with the team’s laser-like focus as we are
executing a dual track effort to complete the transaction with
Quoin and ensure the seamless transition of our intellectual
property (IP) and clinical program to privately-held EnCellX, a
U.S. based company that will aim to develop and commercialize our
technology,” commented Dr. Shai Yarkoni, Chief Executive Officer.
“We achieved important milestones during the quarter, including the
F4 filing as it gets us one step closer to completing the
transaction with Quoin. Additionally, the positive top line data we
reported from the Israel study validated our technology and is
generating momentum as we launch our U.S. clinical program.
Separately, Yaron Ben-Oz, CPA, will be joining the Company as
Chief Financial Officer, effective September 1, 2021. Mr. Ben-Oz
has over 20 years of financial executive positions in public and
private companies and was previously at EY Israel. In June, the
Company disclosed that Eyal Leibovitz, the current CFO, planned to
leave on August 31, 2021. Following the closing of the strategic
merger with Quoin, Mr. Ben-Oz will continue serving as the CFO of
Cellect Biopharmaceuticals Ltd. the post-merger subsidiary of
EnCellX Inc.
Second Quarter Financial Results:
- Research and development (R&D) expenses for the second
quarter were $0.42 million compared to $0.42 million in the second
quarter of 2020.
- General and administrative (G&A) expenses for the second
quarter were $0.86 million compared to $0.65 million in the 2020
second quarter. This year’s G&A expenses included higher
professional services fees in connection with the proposed
strategic merger with Quoin.
- Finance expenses for the second quarter of 2021 were $0.43
million compared to finance expenses of $1.63 million in the second
quarter of 2020.
- Total comprehensive loss for the second quarter was $1.7
million, or $0.004 per share compared total comprehensive loss of
$2.7 million, or $0.007 per share, in the second quarter of
2020.
|
* |
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, 2021 (U.S. $1 = NIS 3.26). |
About Cellect Biotechnology
Ltd.
Cellect Biotechnology (APOP) is developing a breakthrough
technology for the selection of stem cells from any given tissue
that aims to improve a variety of cell-based therapies.
The Company's products are expected to provide
researchers, clinicians and pharmaceutical companies with the tools
to rapidly isolate specific cells in quantity and quality, allowing
cell-based treatments and procedures in a wide variety of
applications in regenerative medicine. The Company's lead product
is currently in FDA approved 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. 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; or
maintain its current operations; uncertainties involving any
strategic transaction the Company may decide to enter into as the
result of its current efforts to explore new strategic
alternatives; 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, 2020
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.Eyal Leibovitz, Chief
Financial Officerwww.cellect.co+972-9-974-1444
Or
EVC Group LLCMichael Polyviou(732)
933-2754mpolyviou@evcgroup.com
Cellect Biotechnology Ltd.Consolidated Statement
of Operation
|
|
Convenience |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
translation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
monthsended |
|
|
Six months
ended |
|
|
Three months
ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
Unaudited |
|
|
Unaudited |
|
|
|
U.S. dollars |
|
|
NIS |
|
|
|
(In thousands,
except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses |
|
|
831 |
|
|
|
2,710 |
|
|
|
2,901 |
|
|
|
1,382 |
|
|
|
1,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses |
|
|
1,830 |
|
|
|
5,967 |
|
|
|
4,703 |
|
|
|
2,797 |
|
|
|
2,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
|
2,661 |
|
|
|
8,677 |
|
|
|
7,604 |
|
|
|
4,179 |
|
|
|
3,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
expenses (income) due to warrants exercisable into shares |
|
|
430 |
|
|
|
1,401 |
|
|
|
3,807 |
|
|
|
1,167 |
|
|
|
4,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
financial expenses (income), net |
|
|
(71 |
) |
|
|
(233 |
) |
|
|
(55 |
) |
|
|
233 |
|
|
|
627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive loss |
|
|
3,020 |
|
|
|
9,845 |
|
|
|
11,356 |
|
|
|
5,579 |
|
|
|
8,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted loss per share |
|
|
0.008 |
|
|
|
0.025 |
|
|
|
0.034 |
|
|
|
0.014 |
|
|
|
0.024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares outstanding used to compute basic and
diluted loss per share |
|
|
391,486,542 |
|
|
|
391,486,542 |
|
|
|
338,182,275 |
|
|
|
392,024,006 |
|
|
|
365,428,101 |
|
Cellect Biotechnology Ltd.Consolidated Balance
Sheet Data
|
|
Convenience |
|
|
|
|
|
|
|
|
|
translation |
|
|
|
|
|
|
|
|
|
June 30, |
|
|
June 30, |
|
|
December 31, |
|
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
|
Unaudited |
|
|
Unaudited |
|
|
Audited |
|
|
|
U.S. dollars |
|
|
NIS |
|
|
|
(In
thousands, except share and per share
data) |
|
CURRENT
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
2,673 |
|
|
|
8,714 |
|
|
|
16,964 |
|
Other receivables |
|
|
350 |
|
|
|
1,141 |
|
|
|
284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,023 |
|
|
|
9,855 |
|
|
|
17,248 |
|
NON-CURRENT
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
Restricted cash |
|
|
99 |
|
|
|
322 |
|
|
|
322 |
|
Right of use - Assets under operating lease |
|
|
153 |
|
|
|
499 |
|
|
|
705 |
|
Other long-term receivables |
|
|
15 |
|
|
|
50 |
|
|
|
72 |
|
Property, plant and equipment, net |
|
|
322 |
|
|
|
1,051 |
|
|
|
1,232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
589 |
|
|
|
1,922 |
|
|
|
2,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,612 |
|
|
|
11,777 |
|
|
|
19,579 |
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables |
|
|
150 |
|
|
|
490 |
|
|
|
389 |
|
Other payables |
|
|
742 |
|
|
|
2,419 |
|
|
|
2,228 |
|
Lease liabilities |
|
|
112 |
|
|
|
366 |
|
|
|
369 |
|
|
|
|
1,004 |
|
|
|
3,275 |
|
|
|
2,986 |
|
NON-CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
Warrants to ADS |
|
|
791 |
|
|
|
2,577 |
|
|
|
1,222 |
|
Lease liability |
|
|
62 |
|
|
|
202 |
|
|
|
391 |
|
|
|
|
853 |
|
|
|
2,779 |
|
|
|
1,613 |
|
EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares of no par value: Authorized: 500,000,000 shares at
December 31, 2020 and June 30, 2021; Issued and outstanding:
390,949,079*) and 392,173,679*) shares as of December 31, 2020 and
June 30, 2021, respectively. |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Additional
Paid in Capital |
|
|
38,955 |
|
|
|
126,996 |
|
|
|
126,838 |
|
Share-based
payments |
|
|
5,196 |
|
|
|
16,938 |
|
|
|
16,508 |
|
Treasury
shares |
|
|
(2,891 |
) |
|
|
(9,425 |
) |
|
|
(9,425 |
) |
Accumulated
deficit |
|
|
(39,505 |
) |
|
|
(128,786 |
) |
|
|
(118,941 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,755 |
|
|
|
5,723 |
|
|
|
14,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,612 |
|
|
|
11,777 |
|
|
|
19,579 |
|
|
*) |
Net of
2,641,693 treasury shares of the Company held by the Company. |
Cellect Biotechnology Ltd.Consolidated Cash Flow
Data
|
|
Convenience |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
translation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
monthsended |
|
|
Six months
ended |
|
|
Three months
ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
Unaudited |
|
|
Unaudited |
|
|
|
U.S. dollars |
|
|
NIS |
|
|
|
(In
thousands) |
|
Cash
flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss |
|
|
(3,020 |
) |
|
|
(9,845 |
) |
|
|
(11,356 |
) |
|
|
(5,579 |
) |
|
|
(8,804 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
rate difference |
|
|
72 |
|
|
|
232 |
|
|
|
5 |
|
|
|
(231 |
) |
|
|
700 |
|
Net
financing expenses |
|
|
8 |
|
|
|
25 |
|
|
|
37 |
|
|
|
16 |
|
|
|
18 |
|
Depreciation
of Right of use - Assets under operating lease |
|
|
63 |
|
|
|
206 |
|
|
|
183 |
|
|
|
101 |
|
|
|
92 |
|
Depreciation |
|
|
56 |
|
|
|
181 |
|
|
|
170 |
|
|
|
89 |
|
|
|
84 |
|
Changes in
fair value of warrants |
|
|
430 |
|
|
|
1,403 |
|
|
|
3,807 |
|
|
|
1,169 |
|
|
|
4,697 |
|
Share-based
payment |
|
|
132 |
|
|
|
430 |
|
|
|
829 |
|
|
|
206 |
|
|
|
468 |
|
Decrease
(increase) in other receivables |
|
|
(256 |
) |
|
|
(835 |
) |
|
|
(473 |
) |
|
|
492 |
|
|
|
(544 |
) |
Increase
(decrease) in other payables |
|
|
89 |
|
|
|
292 |
|
|
|
(753 |
) |
|
|
(377 |
) |
|
|
(1,621 |
) |
Interest
received during the period |
|
|
3 |
|
|
|
8 |
|
|
|
35 |
|
|
|
3 |
|
|
|
23 |
|
Net cash
used in operating activities |
|
|
(2,423 |
) |
|
|
(7,903 |
) |
|
|
(7,516 |
) |
|
|
(4,111 |
) |
|
|
(4,887 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted
cash, net |
|
|
- |
|
|
|
- |
|
|
|
(2 |
) |
|
|
- |
|
|
|
2 |
|
Sale
(Purchase) of property, plant and equipment |
|
|
- |
|
|
|
- |
|
|
|
31 |
|
|
|
- |
|
|
|
(3 |
) |
Net cash
provided by investing activities |
|
|
- |
|
|
|
- |
|
|
|
29 |
|
|
|
- |
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of
warrants and stock options into shares |
|
|
34 |
|
|
|
110 |
|
|
|
4,707 |
|
|
|
110 |
|
|
|
4,684 |
|
Leases
liabilities |
|
|
(66 |
) |
|
|
(214 |
) |
|
|
(212 |
) |
|
|
(108 |
) |
|
|
(108 |
) |
Issue of
share capital and warrants, net of issue costs |
|
|
- |
|
|
|
- |
|
|
|
9,194 |
|
|
|
- |
|
|
|
71 |
|
Net cash
provided (used) by financing activities |
|
|
(32 |
) |
|
|
(104 |
) |
|
|
13,689 |
|
|
|
2 |
|
|
|
4,647 |
|
Exchange
differences on balances of cash and cash equivalents |
|
|
(76 |
) |
|
|
(243 |
) |
|
|
(39 |
) |
|
|
228 |
|
|
|
(721 |
) |
Increase
(decrease) in cash and cash equivalents |
|
|
(2,531 |
) |
|
|
(8,250 |
) |
|
|
6,163 |
|
|
|
(3,881 |
) |
|
|
(962 |
) |
Balance of
cash and cash equivalents at the beginning of the period |
|
|
5,204 |
|
|
|
16,964 |
|
|
|
18,106 |
|
|
|
12,595 |
|
|
|
25,231 |
|
Balance
of cash and cash equivalents at the end of the period |
|
|
2,673 |
|
|
|
8,714 |
|
|
|
24,269 |
|
|
|
8,714 |
|
|
|
24,269 |
|
Second Quarter Financial Results:
Cellect Biotechnology (NASDAQ:APOP)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Cellect Biotechnology (NASDAQ:APOP)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024