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Kadimastem Completes NIS 6M Raise from Private InvestorsNov. 23, 2015
The investors included Professor Joseph Itskovitz-Eldor, a world leading figure in the stem cell field, Dov Shafir, formerly a director of Teva and a seasoned investor in the biotechnology sector and Gary Leibler, CEO of Shavit Capital Fund
Ness Ziona, Israel, November 23, 2015, Israeli biotechnology company Kadimastem (TASE: KDST) announces today that it has signed investment agreements in the amount of around NIS 1.8M with private investors.
The investors include: Professor Joseph Itskovitz-Eldor, a world leading figure in the stem cell field; Dov Shafir, formerly a director of Teva and a seasoned investor in the biotechnology sector; Gary Leibler, CEO of Shavit Capital Fund; and Ami Lidor and Vered Lidor-Mary, owners of Lidor Chemicals Ltd., one of Israel's largest suppliers of raw materials, crop protection products and veterinary products, and is a distributor of Bayer in Israel. Dr. Eliezer Wolf, formerly the Deputy CEO of Bank Mizrahi-Tefahot, and Ahmed Alimi, CEO of publicly traded Vaxil Bio, an active director in Therapics Bio and a seasoned investor in the field, also took part.
I addition, Mr. Avi Meizler, an international entrepreneur who invests in biomed companies, announced an additional investment in the company, in the amount of around NIS 930K, thereby completing a NIS 2.1M investment since late September 2015. These investments were made through exercising non-marketable options issued to Mr. Meizler in a private placement held by the company approximately a year and a half ago. This is a vote of confidence in the company, since the exercise of the options took place seven months and four months before their last exercise date, respectively. Including these investments, Avi Meizler has invested approximately NIS 4.3M in the company to date.
This raise is in addition to an earlier NIS 2M private investment, subject to general shareholders’ meeting approval, by Julien Ruggieri, a controlling shareholder in Kadimastem, who has invested around NIS 13.8M to date in the company, including the current investment.
Yossi Ben Yossef, the company’s CEO, stated: “Kadimastem continues to diversify its sources of financing. Through this raise, alongside the budget approved by the Office of Chief Scientist, international grants recently approved for the company, and potential grants the company is applying for, Kadimastem paves the way towards clinical trials. We welcome this major vote of confidence in the company, both from current investors taking part in this raise following their previous investments in the company, as well as from new investors joining Kadimastem for the first time”.
In the framework of the current raise, in an amount of NIS 1.8M, conducted as a private placement including to the Israel Securities Exchange's restriction regulations, the investors undertake to forthwith provide their investment according to a share price of NIS 4.2. In addition, warrants were issued at an exercise price of NIS 6 for one year. A full exercise of the warrants will provide the company a further NIS 1M.
Kadimastem is a biotechnology company, operating in the field of regenerative medicine – a groundbreaking field in which the malfunctioning of organs which leads to diseases is repaired by external cells, tissues or organs. The company specializes in the development of human stem cell-based medical solutions for the treatment of diabetes and neurodegenerative diseases, such as ALS and Multiple Sclerosis. The company was founded in August 2009 by Professor Michel Revel and Yossi Ben Yossef, and is traded on the Tel Aviv Stock Exchange (TASE: KDST). Kadimastem employs 32 people, of which 11 are PhDs, and its 1,700m2 offices and labs are located in the Ness Ziona Science Park.
Kadimastem was founded based on patent protected technology that was developed at the Weizmann Institute of Science, in Prof. Michel Revel’s laboratory. Prof. Revel, who serves as the company's Chief Scientist and director, developed Merck KGaA's blockbuster drug, Rebif® for the treatment of MS (sales of around $2.4 billion sales in 2014).
Based on the company's unique platform, Kadimastem is developing two types of medical applications: A. Regenerative medicine, which repairs and replaces organs and tissue by using functioning cells differentiated from stem cells. The company focuses on transplanting healthy brain cells to support the survivability of nerve cells as cell therapy for ALS, and transplanting insulin-secreting pancreatic cells for the treatment of insulin-dependent diabetes; B. Drug screening platforms, which use functional human cells and tissues to discover new medicinal drugs. The company has two collaboration agreements with leading global pharmaceutical companies.
The company is headed by Yossi Ben-Yossef, an entrepreneur with extensive experience in life sciences companies. The company's chairman is Dr. Eli Opper, formerly the Chief Scientist of the Israeli Ministry of Industry, Labor and Trade, and its investors include Altshuler Shaham Investment House, foreign investors (Julien Ruggieri and Avi Meizler), and the company's founders.
Kadimastem has an extensive scientific advisory board, featuring prominent scientists and pioneers: in the embryonic stem cells field, Professor Benjamin Reubinoff and Professor Joseph Itskovich, in the neurodegenerative disease field, Professor Tamir Ben-Hur, and in the diabetes field, Professor Shimon Efrat and Professor Eddy Karnieli.
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