Stem cell developer Pluristem Therapeutics Ltd. (Nasdaq:PSTI; DAX: PJT: PLTR) and Korea's CHA Bio&Diostech (Kodaq: CHA) are pushing forward with the strategic partnership agreement reached in June.
The two companies have concluded a mutual investment of $10.4 million through a share swap. Pluristem has issued 2,500,000 shares of its common stock in consideration for the issuance to Pluristem of 1,011,504 shares of CHA. This reflects a total consideration of $10.4 million, at a price of $4.16 per Pluristem common share, a premium of 26% over yesterday's closing price. The shares are subject to a lock up period of one year.
The agreement between Pluristem and CHA encompasses the use of Pluristem's PLX-PAD cells in the treatment of two subsets of Peripheral Artery Disease (PAD) in South Korea: Intermittent Claudication (IC) and Critical Limb Ischemia (CLI).
Pluristem chairman and CEO Zami Aberman said, "We believe that initiating clinical trials with CHA Bio for indications in the area of peripheral vascular disease opens significant opportunities for Pluristem in South Korea's dynamic regenerative medicine industry. We also look forward to potentially expanding the use of our PLX cells for other indications with our partner, CHA Bio."
The first clinical study to be performed as part of the agreement will be a Phase II trial in IC which will run in parallel to the Phase II trial being conducted in the US, Germany and Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on December 17, 2013
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