Kadimastem
Kadimastem Raises NIS 16.1 million ($5 million) In Private Placement

Kadimastem Ltd. (TASE: KDST), a clinical stage cell therapy company, announced today a NIS 16.1 million ($5 million) private placement, led by funds Clover Wolf Capital and Alpha Capital Anstalt and with the additional investment in the company by its controlling shareholders, Professor Michel Revel and Mr. Julien Ruggieri.

In addition to the placement announced today, the investors were also given an option to purchase an additional NIS 15.1 million ($4.7 million) in shares in the future.

Today’s investment will be used to support Kadimastem’s future clinical trial activity and fund multiple strategic collaborations involving both the company’s ALS and Diabetes programs.

The options were granted to the funds as part of a share issue from last April 2021. Clover Wolf has exercised 1,232,395 options and Alpha Capital has exercised 1,161,972 options both at an exercise price of 3.5 shekels ($1.1).

This exercise of options took place approximately 10 months before the expiration date and amounted to about NIS 9.45 million ($2.9 million) for the company. The original exercise date of the options was July 31, 2022.

Following the transaction, Clover Fund has increased its holding to approximately 20.6% of the company, while Alpha Capital has increased its holding to approximately 10.7% of the company.

Following the additional investment by Professor Michel Revel and Mr. Julien Ruggieri, their holdings percentage has increased to 41.9% collectively. Company founder and controlling shareholder Professor Michel Revel exercised options amounting to NIS 3.5 million ($1.1 million) about a month ago. Following last month’s exercise of options, Professor Revel now holds approximately 31% of the company's shares.

The round announced today follows a successful raise of NIS 22.3 million ($6.8 million) last April 2021. It’s also part of a series of company successes over the past year, including the meeting with the FDA (INTERACT) earlier this month regarding IsletRx, the company's stem cell-based technology for the treatment and potential cure of diabetes, the receipt of a Japanese patent for IsletRx, and the publishing of a scientific paper in the prestigious, peer-reviewed journal Frontiers in Endocrinology on the company’s advances in stem cell technology for the treatment and potential cure for diabetes.

Kadimastem CEO Asaf Shiloni said, ‘Today’s funding will boost the speed of implementation of Kadimastem’s development strategy and enable us to safely fund our preparation for the clinical trials next year in the US. We are building a company that will lead the field of cell therapy, and the right mix of investors, who believe in the company’s path, is critical to enabling us to successfully implement our ambitious programs.’

Chairman of the Board of Directors of Kadimastem Ronen Twito said, ‘We are very pleased with today’s significant private placement, which comes only six months after the Clover Wolf Capital and Alpha Capital Anstalt funds joined as shareholders. The funds have expressed confidence in us for the second time, and at a company value significantly higher than that determined in the previous round. Along with the investment of the controlling shareholders, Professor Michel Revel and Mr. Julian Ruggieri, this is an exceptional expression of trust in the company’s management, assets, progress and quality of science. We will continue to professionally lead Kadimastem to further success as well as maintain clear communication with and bring value to our shareholders.

About Kadimastem

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(R), the company's lead product, is an astrocyte cell therapy in clinical development for the treatment for ALS. IsletRx is the company's second product in development. IsletRx is comprised of functional, insulin producing, pancreatic islet cells intended to treat and cure patients with insulin dependent diabetes. IsletRx demonstrated safety and efficacy in a proof-of-concept preclinical study. An INTERACT meeting took place with the FDA on October 7, 2021 where the diabetes treatment program was discussed and the company received directions how to prepare its Pre-IND submission. 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(R), a multiple sclerosis blockbuster drug sold worldwide. Kadimastem is traded on the Tel Aviv Stock Exchange (TASE: KDST).

Forward Looking Statement:

This document may include forward-looking information as defined in the Securities Law, 5728 – 1968. Forward-looking information is uncertain and mostly is not under the Company's control and the realization or non-realization of forward-looking information will be affected, among other things, by the risk factors characterizing the Company's activity, as well as developments in the general environment and external factors affecting the Company's activity. The Company's results and achievements in the future may differ materially from any presented herein and the Company makes no undertaking to update or revise such projection or estimate and does not undertake to update this document. This document does not constitute a proposal to purchase the Company's securities or an invitation to receive such offers. Investment in securities in general and in the Company in particular bears risks. One should consider that past performance does not necessarily indicate performance in the future.

Contact Details

Kadimastem

Sarah Herzl

+972 73-797-1613

s.herzl@kadimastem.com

Company Website

https://www.kadimastem.com/