Cellect Biotechnology Ltd Provides Corporate Update And Reports Third Quarter 2016 Financial Results

TEL AVIV, Israel, Nov. 28, 2016 (GLOBE NEWSWIRE) -- Cellect Biotechnology Ltd. (NASDAQ:APOP) (TASE: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 third quarter ended September 30, 2016.

Dr. Shai Yarkoni, Chief Executive Officer, said, "During the third quarter, we were pleased to receive the Israeli Ministry of Health's approval to begin a Phase I/II clinical trial in leukemia patients to evaluate the safety and efficacy of Cellect's cell selection technology, 'Powered by Cellect'. We believe Cellect's transformative approach to cell selection represents a significant breakthrough in the ability to produce selective destruction of mature cell populations, thus reducing the significant risks associated with bone marrow transplantation."

"We look forward to beginning to enroll patients into this study, which is the first of its kind in leukemia patients in need of bone marrow transplantation, shortly," continued Dr. Yarkoni. "With this continued development progress, and our recent U.S. IPO, Cellect has never been in a stronger operating position. Our focus remains on creating long-term shareholder value."

Recent Corporate Highlights:
  • Received the Israeli Ministry of Health's approval to begin a Phase I/II clinical trial in leukemia patients. The trial, which Cellect expects will be initiated shortly, will be conducted in the bone marrow transplantation unit of Rambam Hospital, and led by Clinical Assistant Professor, Zila Zuckerman, the Director of the unit.
  • Priced an initial public offering (IPO) in the U.S., resulting in gross proceeds of $8.4 million ($7.6 million net of underwriters' fees and discounts).
  • Filed an urgent request with the Court in Israel to approve the convening of a Special General Meeting of its Shareholders and its Series 1 Warrant Holders to approve the extension of the term of the Company's Series 1 Warrants until November 21, 2017. On November 9, 2016, the Court approved the extension until February 15, 2017, as temporary relief. Additionally, Cellect's Board of Directors resolved to approve an extension of the term of the additional unregistered warrants issued on March 8, 2016, pursuant to a private placement, until March 7, 2018. This potential extension is subject to certain corporate actions.

Third Quarter 2016 Financial Results:
  • Research and development (R&D) expenses for the third quarter of 2016 were $0.55 million, compared to $0.5 million in the second quarter of 2016 and $0.4 million in the third quarter of 2015. The slight increase in the third quarter of 2016 as compared to the second quarter was primarily due to an increase in pre-clinical expenses (primarily payroll and related expenses), offset by a slight decrease in Intellectual Property expenses.
  • General and administrative (G&A) expenses for the third quarter of 2016 were $0.75 million, compared to $0.4 million in the second quarter of 2016 and $0.3 million in the third quarter of 2015. The increase in the third quarter of 2016 as compared to the second quarter was primarily due to increases of $0.15 million in professional services, including investor relations and other Nasdaq-related expenses, and $0.2 million in payroll-related expenses.  
  • Finance expenses for the third quarter of 2016 were $0.2 million, compared to an insignificant amount in the second quarter of 2016 and the comparable period of 2015. The increase was primarily due to $0.15 million of expenses related to fair value of the tradable warrants granted on the U.S. IPO.
  • Net loss for the third quarter of 2016 was $1.5 million, or $0.015 per share, compared to $0.8 million, or $0.01 per share, in the second quarter of 2016, and $0.7 million, or $0.008 per share, in the third quarter of 2015.

Balance Sheet Highlights:
  • Cash and cash equivalents (including marketable securities and short terms deposits) totaled $9.4 million as of September 30, 2016, compared to $3.1 million on December 31, 2015, and $3.8 million on September 30, 2015. The increase compared to December 31, 2015, was primarily due to net proceeds of $7.6 million (after deducting underwriters' fees) raised through the IPO in the U.S, priced on July 29, 2016,and additional net proceeds of approximately $2 million raised through a private placement completed in March 2016, offset by cash used in operations during the period.
  • Tradable warrants exercisable into shares totaled $0.8 million as of September 30, 2016, and represented, according to the international financial reporting standards (IFRS), the fair value of the tradable warrants granted in the U.S. IPO which closed on August 3, 2016.
  • Shareholders' equity totaled $8.4 million as of September 30, 2016, compared to $2.8 million on December 31, 2015, and $3.6 million on September 30, 2015.

* For the convenience of the reader, the amounts have been translated from NIS into U.S. dollars, at the representative rate of exchange on September 30, 2016 (U.S. $1 = NIS 3.75).

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