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Kadimastem to Raise up to NIS 10M in Rights Offering
Oct. 14, 2014
The company's stakeholders will invest significant sums in the offering
Ness Ziona, Israel, 14 October 2014, Israeli biotechnology company Kadimastem (TASE: KDST) announces it will hold a rights offering on November 12th. The company will offer up to 13,986 rights units to the company's shareholders. Each unit will include 206 shares at 3.5 NIS per share. The maximal proceeds expected from the offering, should all rights be fully exercised, will amount to NIS 10M.
The company's stakeholders announced their intentions to participate in the rights offering at around NIS 3.5M.
The funds will support the company's operating activity, pre-clinical trials and preparation towards clinical trials, and scientific collaborations.
Last week, the company announced that only one day after approaching the FDA regarding the cellular treatment it is developing for ALS, an encouraging response was received. Based on the quality of the data presented, the FDA recommended rapidly moving forward in the approval process to product development and safety (towards clinical trials).
The implication of the detailed response received from the FDA is a decrease in the company's development time and costs. This type of announcement is unique in the stem cell field, and enables the company to immediately move forward to the next regulatory stage.
Kadimastem (www.kadimastem.com) (TASE: KDST) uses human stem cells that are differentiated to create medical solutions for diabetes and degenerative diseases of the nervous system and for drug screening. The company’s technological platform enables the differentiation of stem cells into a range of functional human cells, including neuron-supporting cells in the brain as well as pancreatic cells that secrete insulin – beta cells.
Kadimastem relies on technology that was initially invented at the Weizmann Institute in Prof. Michel Revel’s laboratory, and which is now being further developed and advanced in the company’s labs at the Weizmann Science Park. Kadimastem is developing two types of medical applications: A. Regenerative medicine, the purpose of which is to repair and replace tissues and organs damaged by disease using healthy cells grown in laboratory conditions, for example, transplantation of insulin-secreting pancreas cells to treat insulin-dependent diabetes, or transplantation of healthy brain-supporting cells to improve survival of nerve cells and treat ALS; B. Drug screening platforms which use functional human cells and tissues to discover new medicinal drugs.