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Kadimastem announces its intention to reduce the exercise price for warrants (Series 1)

Feb. 3, 2014

Kadimastem announces its intention to reduce the exercise price for warrants (Series 1)

This change should benefit warrant holders as well as the company, and the potential capital injection may accelerate R&D efforts by Kadimastem.

February 2, 2014 – Kadimastem, a developer of stem cell-based drug screening and therapeutic solutions,, announced today its intention to reduce the exercise price for its warrants (Series 1) from NIS 7.60 per warrant to NIS 3.50 per warrant, as well as for some non-negotiable warrants whose terms and conditions are identical to those of warrants (Series 1), so as to reduce their exercise price from NIS 7.60 per warrant to NIS 3.50 per warrant. The warrants whose exercise price will be reduced may be exercised through June 5, 2015.

This price reduction is intended, inter alia, to increase the likelihood of exercise of these warrants and to allow the company to raise additional capital at costs which are not significant to the company. Note that the exercise price reduction is subject to approval by holders of warrants (Series 1) and by the Court.

These warrants (Series 1) were issued by the company to the public in June 2013, as part of a public offering in which Kadimastem raised NIS 20.4 million gross, issuing 3.1 million shares, 1.75 million warrants (Series 1) and 1.7 million warrants (Series 2). The company emphasized that the current update would not include warrants (Series 2), which may be exercised for an exercise price of NIS 10 per share through June 5, 2017.

Subject to successful completion of this change of exercise price of warrants (Series 1), the company will also similarly reduce the exercise price of its non-tradable warrants, from NIS 7.60 to NIS 3.50, which were allocated by the company prior to its IPO as to investors who took part in financing rounds and convertible bridge loans (other than those allotted to controlling shareholders of the company).

Kadimastem has developed an innovative technology for development and production of pancreatic beta cells used to treat and cure Diabetes, and has created and developed a screening platform for drug discovery for neurodegenerative diseases such as Multiple Sclerosis (MS) and Amyotrophic Lateral Sclerosis (ALS). Recently, the company has signed an MOU with Merck Serono to expand the two companies' current commercial co-operation on scanning and drug discovery for degenerative conditions such as MS and ALS.


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