NESS ZIONA, Israel, Nov. 29, 2021 /PRNewswire/ -- Kadimastem Ltd. (TASE: KDST), a clinical stage cell therapy company developing a treatment for ALS and a cure for diabetes, announces a raise of 10 million NIS ($3.2 million) from ILEX Medical (TASE: ILX) one of the largest healthcare companies in Israel, in a private financing round. The raise was completed at a price of 4.26 NIS ($1.35) per share (about 5% higher than the closing price of the share on the eve of the board of directors meeting). As part of the investment, ILEX Medical was granted a total of 1,407,130 options (60% coverage) in 2 series, at exercise prices of 7 NIS ($2.2) and 8.5 NIS ($2.7) per share (up to 100% from the share price at the transaction). If exercised, it would increase the amount of the investment to 21 million NIS ($6.7 million). Tamar Galili, CEO of ILEX Medical, intends to join the board of Kadimastem.
Kadimastem also announced today that its Board of Directors intends to pursue a NASDAQ listing.
Kadimastem has raised more than 50 million NIS ($15.9 million) since the beginning of 2021, with the arrival of its current management team, led by biotechnology industry moguls Chairman of the Board Mr. Ronen Twito and CEO Mr. Asaf Shiloni, who joined Kadimastem after 13 years at PeproTech (USA). The financing raised by the management has strengthened the company's ability to advance its scientific research programs and further its strategy.
Today's funding is earmarked to finance the further clinical development of AstroRx® for the treatment of ALS and to begin the clinical development of IsletRx, intended to be a cure for insulin-dependent diabetes. The investment will be used to complete the preparations for these trials and support the associated strategic collaborations.
Today's news is the latest in a series of milestones achieved during 2021, including a meeting with the FDA (INTERACT) earlier this month regarding IsletRx, receipt of a patent for the IsletRx technology from Japan, and the publishing of a scientific paper detailing the IsletRx program in the prestigious Frontiers in Endocrinology peer reviewed scientific journal.
"We are excited to partner with ILEX Medical, one of the most significant companies in Israel in the biotechnology field and currently traded at a value of around 1.5 billion NIS ($480 million). Their investment is not only an endorsement of the Kadimastem's leadership and its vision, but also provides solid support to achieve this vision," said Kadimastem CEO Mr. Shiloni. "Between the stream of financings and the clinical program advancements, we have created enormous momentum in the past year. We intend to continue building on this momentum to provide increasing value to the medical and investment community alike. We are excited about the future."
Kadimastem Chairman of the Board Mr. Twito said, "The series of investments during the past year demonstrates investor confidence in the new Kadimastem's. It also indicates that the market understands the high value and potential of cell therapy and is ready and willing to support it. In addition, the board of directors has made the decision to list shares on NASDAQ. This process will make the company and its technology platform available to American and institutional investors in the field, raise awareness amongst analysists and stimulate international activity. The recent transactions that Kadimastem has completed, including the ILEX Medical investment, have strengthened the company's equity in a way that will enable it to prepare for listing on NASDAQ. We thank ILEX Medical for their support and their choice to become a strategic investor in Kadimastem."
ILEX Medical CEO Mrs. Tami Galili said, "The vote of confidence in Kadimastem is part of the investment strategy stated by the company, as part of the diversification of the growth engines of ILEX Medical. We see Kadimastem as a promising company in the field of cellular therapy. We are also confident that its new leadership team will place Kadimastem on a path of accelerated growth, deliver solutions to patients and up list the company on NASDAQ. This investment follows our investment in Starget Pharma and is part of ILEX Medical's decision to making significant and meaningful investments."
About ILEX Medical
ILEX Medical (established in 1977) is a part of ILEX Group, which has been publicly traded on the Tel Aviv Stock Exchange since 1995 (TASE:ILX). ILEX Medical is a leading company in the medical diagnostics field and specializes in marketing as well as selling and maintaining equipment, disposables and reagents to laboratories and healthcare establishments in Israel. The ILEX Group is closely affiliated with leading multinational medical conglomerates, like Abbott, Hologic, Grifols, BioMerieux, IL Sebia, and Fertilitech, and provides a forefront of solutions in medical fields such as microbiology, blood banking, Hematology coagulation, I.V.F and more. ILEX Medical serves major clients including the Israeli Ministry of Health, all four major Israeli HMOs (serving seven million members), medical research institutions, the Israeli Defense Forces Medical Corps, major public and private health organizations in South Africa and blood banks in Israel and South Africa. The ILEX Group holds shares in Medtechnica (~54%), which specializes in medical and home care equipment. Orsyx, ILEX Medical's software division, which specializes in producing laboratory information data management products (LIS), offers a total and efficient solution for diagnostic and medical equipment. Over 40 years, ILEX Medical has established itself as a company with a top reputation, providing professional and reliable service, thanks to its high-quality and highly trained team which includes more than 100 employees. In the age of rapid technological innovation, ILEX Medical's goal is to remain at the forefront of science and technology, and bring the latest innovation to its customers, to provide the most efficient and best service.
Kadimastem is a clinical stage cell therapy company, developing and manufacturing "off-the-shelf", allogeneic, proprietary cell products based on its technology platform for the expansion and differentiation of Human Embryonic Stem Cells (hESCs) into functional cells. AstroRx®, the company's lead product, is an astrocyte cell therapy in clinical development for the treatment for ALS. IsletRx is the company's second product in development. IsletRx is comprised of functional, insulin producing, pancreatic islet cells intended to treat and cure patients with insulin-dependent diabetes. IsletRx demonstrated safety and efficacy in a proof-of-concept preclinical study. An INTERACT meeting took place with the FDA on October 7, 2021, where the diabetes treatment program was discussed, and the company received directions how to prepare its Pre-IND submission. Kadimastem was founded by Professor Michel Revel, CSO of the company and Professor Emeritus of Molecular Genetics at the Weizmann Institute of Science. Professor Revel received the Israel Prize for the invention and development of Rebif®, a multiple sclerosis blockbuster drug sold worldwide. Kadimastem is traded on the Tel Aviv Stock Exchange (TASE: KDST).
Forward Looking Statement
This document may include forward-looking information as defined in the Securities Law, 5728 – 1968. Forward-looking information is uncertain and mostly is not under the Company's control and the realization or non-realization of forward-looking information will be affected, among other things, by the risk factors characterizing the Company's activity, as well as developments in the general environment and external factors affecting the Company's activity. The Company's results and achievements in the future may differ materially from any presented herein and the Company makes no undertaking to update or revise such projection or estimate and does not undertake to update this document. This document does not constitute a proposal to purchase the Company's securities or an invitation to receive such offers. Investment in securities in general and in the Company in particular bears risks. One should consider that past performance does not necessarily indicate performance in the future.
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