Kadimastem - Stem Cell to Cure Diseases

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Kadimastem's Public Offering a Big Success

Dec. 15, 2015

Demand of Over NIS 11M and a Price Higher than the Minimum Price

Professors and prominent business executives took part

Ness Ziona, Israel, December 15, 2015, Israeli biotechnology company Kadimastem (TASE: KDST) announces today a successful public offering it held yesterday, Monday, December 14th.

In the offering, the company offered 5,715 units of 100 shares each, at a minimum price of NIS 700 per unit.

The company received record demands of more than NIS 11M. 15,718 units were ordered in the bid, out of which only 42% were granted. The price set in the bid was NIS 715 per unit, which reflects a NIS 7.15 price per share, a higher price than the opening price on the market yesterday (Monday). The company used its right to issue additional units at the price set. The total proceeds from the offering amounted to NIS 4.7M.

Scientists, professors and prominent business executives took part in the issue, amongst them Professor Joseph Itskovitz-Eldor, a world leading figure in the stem cell field and Professor Eddy Karnieli, President of the Israel Endocrine Society. Also took part Dov Shafir, formerly a director in Teva and a seasoned investor in the biotechnology sector, Uzia Galil, "Father of Israeli Hi-Tech" and Prof. Meron Isaacson, a poet and businessman.

Yossi Ben-Yossef, Kadimastem's CEO, noted: "We thank the public for the vote of confidence in the company, as demonstrated in the high demand and the price set in the offering. Respected investors and experienced figures in the field took part in the offering. The company raised during the past quarter around NIS 11M, and it continues to work towards the execution of its strategic plan, advancing towards clinical trials, as we have announced earlier this week, following a successful meeting and agreements with the FDA".

The offering was led by Rosario Underwriting Services and accompanied by advocates Ilan Gerzi and Adi Burstein, of Pearl Cohen Zedek Latzer Baratz law firm.

About Kadimastem

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 Itskovitz-Eldor, 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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