Kadimastem - Stem Cell to Cure Diseases

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Stakeholders' Support for Kadimastem Continues Investment of NIS 2.1M by Way of Private Placement

Jun. 11, 2017

Ness Ziona Science Park, Israel, June 11, 2017 – Israeli biotechnology company Kadimastem (TASE: KDST) announced today the signing of investment agreements with two of its stakeholders, who serve as directors, Mr. Julien Ruggieri, a controlling shareholder, and Mr. Avi Meizler, by way of a private placement. Under the agreement Kadimastem will receive an investment in the amount of NIS 2.1M.

In the past two years, the company's stakeholders have invested in the company, including the current investment, an amount of NIS 13M in the company. Moreover, the stakeholders expressed a willingness and intention to continue to support the company in its ongoing activities and also expressed full confidence in the management of the company. The company sees the investment by the stakeholders in a private placement and the intention to continue to support the company as a vote of confidence in the company.

Under the agreement the stakeholders will receive 850,800 ordinary shares of the company at a share price of NIS 2.50. In addition, the stakeholders will be granted 850,800 non-tradeable warrants at a share price of NIS 3 per exercise share, such that the consideration for exercise of the said warrants will be in an amount of around NIS 2.6M. The warrants will be fully vested upon grant and will be exercisable for a period of 12 months from the date of signing of the investment agreement. The shares allocated and the shares from the exercise of the warrants will be restricted according to the Securities Law.


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 35 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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