Kadimastem, a clinical stage cell therapy company developing treatments for ALS and diabetes, has announced that it has raised NIS 10 million ($3.2 million) from ILEX Medical (TASE: ILX) in a private financing round.
The raise was completed at a price of NIS 4.26 per share (5% higher than the closing price of the share on the eve of the board of directors meeting). As part of the investment, ILEX Medical was granted 1,407,130 options (60% coverage) in 2 series, at exercise prices of NIS 7 and NIS 8.5 per share (up to 100% from the share price at the transaction). If exercised, it would increase the amount of the investment to NIS 21 million NIS ($6.7 million). ILEX Medical CEO Tamar Galili will join Kadimastem's board.
Kadimastem also announced today that its Board of Directors intends to pursue a NASDAQ listing.
Kadimastem has raised more than NIS 50 million ($15.9 million) since the beginning of 2021.
The latest investment will finance the further clinical development of AstroRx for the treatment of ALS and to begin the clinical development of IsletRx, as a cure for insulin-dependent diabetes. The investment will be used to complete the preparations for these trials and support the associated strategic collaborations.
Earlier this month, Kadimastem met with the FDA regarding IsletRx, which has receipt a patent for its technology from Japan.
Kadimastem CEO Asaf Shiloni said, "Between the stream of financings and the clinical program advancements, we have created enormous momentum in the past year. We intend to continue building on this momentum to provide increasing value to the medical and investment community alike."
Kadimastem Chairman Ronen Twito added, "The series of investments during the past year demonstrates investor confidence in the new Kadimastem’s. It also indicates that the market understands the high value and potential of cell therapy and is ready and willing to support it. In addition, the board of directors has made the decision to list shares on NASDAQ. This process will make the company and its technology platform available to American and institutional investors in the field, raise awareness amongst analysists and stimulate international activity."
ILEX Medical CEO Tami Galili said, "The vote of confidence in Kadimastem is part of the investment strategy stated by the company, as part of the diversification of the growth engines of ILEX Medical. We see Kadimastem as a promising company in the field of cellular therapy. We are also confident that its new leadership team will place Kadimastem on a path of accelerated growth, deliver solutions to patients and up list the company on Nasdaq."
Published by Globes, Israel business news - en.globes.co.il - on November 25, 2021.
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