Kadimastem Announces it raised appx 7.5 million NIS by rights offering
Kadimastem Ltd. (TASE: KDST), a clinical stage cell therapy company developing treatments for ALS and diabetes, announces the raising of 7.5 million NIS in a rights offering. The company’s main stakeholders, Prof. Michel Revel and Mr. Julian Ruggeri, and the European Alpha Capital Anstalt, expressed confidence in the company and participated in the rights offering.
Cybele Investments served as a distributor to the transaction. Attorneys Reut Alfiah and Oded Har-Even, of Sullivan & Worcester, accompanied the company in the transaction.
A little over a week ago, the company announced the approval of a NIS 3.5 million (US$1 million) budget grant by Israel-U.S. Binational Industrial R&D Foundation (BIRD) to support Kadimastem and iTolerance Inc.’s joint project to develop and commercialize a breakthrough regenerative technology to cure diabetes without the need for chronic immuno-suppression. The total project budget is NIS 7 million, for a period of 30 months. iTolerance is a US company based in Florida that has developed an innovative technology (iTol 100) with the aim of enabling the transplantation of allogenic cells (genetically different from the patient) without tissue matching and without suppressing the recipient’s immune system.
In preparation for the rights offering, the Company provided a voluntary update on its activities. Regarding the AstroRX product for the treatment of ALS, the company has updated that it intends to submit an IND to the FDA for a phase II/a clinical trial by the end of January 2023. For the submission, the company hired an American CRO for the purpose of planning and implementing the clinical trial. In addition, the company is in contact with experts in the field in the U.S., in preparation for their potential participation in the execution of the clinical trial and is examining potential sites for execution of the experiment.
Regarding the IsletRX product for the treatment of diabetes, the company has updated that following the engagement with the French company Defymed, which develops advanced encapsulation solutions for examining an integrated solution for the treatment of diabetics, the companies are in advanced negotiations for cooperation to develop a joint product in the field of diabetes.
Regarding the intention to list on NASDAQ, the company has updated that it is in the process of preparing for a dual listing on NASDAQ.
The Company also updated that it is in initial communication with a private company to examine a strategic investment in the company and/or strategic cooperation.
Asaf Shiloni, CEO: “The raise from the main stakeholders who have been accompanying the company since its inception, gives a boost to the company’s development plan and will allow us to securely move forward with the submission of the IND to the American’s FDA, and to move towards a phase IIa clinical trial in the US for patients with ALS.”
Ronen Twito, Chairman: “We welcome the confidence of the company’s main stakeholders in its management, the company’s assets, and the quality of science, at a time when the world’s capital markets are unstable. I am confident that we will continue to lead Kadimastem to successes and the realization of its potential.”
Kadimastem is a clinical stage cell therapy company, developing and manufacturing “off-the-shelf”, allogeneic, proprietary cell products based on its technology platform for the expansion and differentiation of Human Embryonic Stem Cells (hESCs) into functional cells. AstroRx®, the company’s lead product, is an astrocyte cell therapy in clinical development for the treatment for ALS and in pre-clinical studies for other neurodegenerative indications.
IsletRx is the company’s treatment for diabetes. IsletRx is comprised of functional, insulin and glucagon producing and releasing pancreatic islet cells, intended to treat and potentially cure patients with insulin-dependent diabetes.
Kadimastem was founded by Professor Michel Revel, CSO of the company and Professor Emeritus of Molecular Genetics at the Weizmann Institute of Science. Professor Revel received the Israel Prize for the invention and development of Rebif®, a multiple sclerosis blockbuster drug sold worldwide. Kadimastem is traded on the Tel Aviv Stock Exchange (TASE: KDST).
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