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APOP - Cellect Biotechnology News Story

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Last Trade - 22/01/21

Micro Cap
Market Cap £5.28m
Enterprise Value £805k
Revenue £n/a
Position in Universe 6152nd / 6630

Cellect Biotechnology Reports Third Quarter Financial and Operating Results; Recent Developments Position Company to Accelerate Progress in 2021

Fri 20th November, 2020 1:00pm
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Promising Progress on Clinical Development Progress, Collaborations and

Mutually Ended Discussion on Medical Cannabis Commercial and Merger Agreements

TEL AVIV, Israel, Nov. 20, 2020 (GLOBE NEWSWIRE) -- Cellect Biotechnology Ltd.
(NASDAQ: APOP), a developer of innovative technology which enables the
functional selection of stem cells, today reported financial and operating
results for the third quarter ended September 30, 2020. Subsequent to the end
of the third quarter, the Company announced several other key achievements
subsequent to the end of the third quarter that position it for continued
success in 2021, including clinical and operational objectives:
* Initiated its clinical trial in the U.S. The trial is being performed at
Washington University School of Medicine in St. Louis, Missouri, which is
among the leading medical centers in the U.S. The Principal Investigator for
the clinical trial is Zhifu Xiang, M.D., of Washington University. He is an
Associate Professor in the Division of Oncology's Bone Marrow Transplantation
& Leukemia Section in the Department of Medicine. John Dipersio M.D, Ph.D.,
will act as co-Principal Investigator for the study. He is the chief of the
Division of Oncology in the Department of Medicine at Washington University.
* Entered into a collaborative agreement with the Swedish XNK Therapeutics,
enabling it to leverage Cellect’s technology in Natural Killer cell
therapies. XNK is a clinical stage Swedish company working with the Karolinska
“In spite of the COVID-19 challenges we expedited our clinical and business
development activities as we successfully achieved several objectives,”
commented Dr. Shai Yarkoni, Chief Executive Officer. “Specifically, we
recently initiated our U.S. clinical trial and entered into a partnership with
a clinical stage biotech company that will leverage our functional cell
selection technology. I believe these results reflect our steadfast
determination and success progressing our clinical trials, which also includes
the trial in Israel, combined with the latest collaboration agreement with XNK
Therapeutics gives us multiple shots on goal to maximize shareholder value. We
believe, based on our internal evaluation and assessment, that each of these
opportunities could potentially represent significant revenue streams in the
coming years.”

Separately, Cellect and Canndoc Ltd. have mutually agreed to end previously
announced commercial and merger discussions. The Company will continue to
pursue a partner that can bring value to its shareholders and progress the
development of the Company’s platform technology.

The Company's cash and cash equivalents totaled $6.07 million as of September
30, 2020. The Company will use its resources to progress clinical and business
development efforts to advance its functional cell selection technology. The
Company has sufficient funds to operate in the next 15 months. Reference is
made to Note 1. C (Going Concern) in the Interim Consolidated Financial
Statements as of June 30(th), 2020, which were filed as an exhibit to a Form
6-K dated August 12, 2020.

Third Quarter 2020 Financial Results:
* Research and development (R&D) expenses for the third quarter of 2020 were
$0.37 million, compared to $0.72 million in the third quarter of 2019. The
decrease in the R&D expenses is primarily due to decrease in clinical
activities as a result of the COVID-19.
* General and administrative (G&A) expenses for the third quarter of 2020 were
$0.36 million compared to $0.80 million in the third quarter of 2019. The
decrease in G&A expenses was primarily due to the decrease in professional
* Finance income for the third quarter of 2020 were $0.26 million, compared to
finance income of $0.12 million in the third quarter of 2019. The change was
primarily due to changes related to the fair value of the tradable and
non-tradable warrants issued in a prior fundraising.
* Net loss for the third quarter of 2020 was $0.47 million, or $0.001 per
share compared to $1.40 million, or $0.006 per share in the third quarter of
* For the convenience of the reader, the amounts above have been translated
from NIS into U.S. dollars, at the representative rate of exchange on
September 30, 2020 (U.S. $1 = NIS 3.441).

About Cellect Biotechnology Ltd.

Cellect Biotechnology (APOP) has developed a breakthrough technology, for the
selection of stem cells from any given tissue, that aims to improve a variety
of cell based therapies.

The Company's technology is expected to provide researchers, clinical
community, and pharma companies with the tools to rapidly isolate specific
cells in quantity and quality allowing cell-based treatments and procedures in
a wide variety of applications in regenerative medicine. The Company's current
clinical trial is aimed at bone marrow transplantations in cancer treatment.

Forward Looking Statements         

This press release contains forward-looking statements about the Company's
expectations, beliefs and intentions. Forward-looking statements can be
identified by the use of forward-looking words such as "believe", "expect",
"intend", "plan", "may", "should", "could", "might", "seek", "target", "will",
"project", "forecast", "continue" or "anticipate" or their negatives or
variations of these words or other comparable words or by the fact that these
statements do not relate strictly to historical matters. For example,
forward-looking statements are used in this press release when we discuss
Cellect's expectations regarding timing of the commencement of its planned
U.S. clinical trial and its plan to reduce operating costs. These
forward-looking statements and their implications are based on the current
expectations of the management of the Company only and are subject to a number
of factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements. In
addition, historical results or conclusions from scientific research and
clinical studies do not guarantee that future results would suggest similar
conclusions or that historical results referred to herein would be interpreted
similarly in light of additional research or otherwise. The following factors,
among others, could cause actual results to differ materially from those
described in the forward-looking statements: the Company's history of losses
and needs for additional capital to fund its operations and its inability to
obtain additional capital on acceptable terms, or at all; the Company's
ability to continue as a going concern; uncertainties of cash flows and
inability to meet working capital needs; the Company's ability to obtain
regulatory approvals; the Company's ability to obtain favorable pre-clinical
and clinical trial results; the Company's technology may not be validated and
its methods may not be accepted by the scientific community; difficulties
enrolling patients in the Company's clinical trials; the ability to timely
source adequate supply of FasL; risks resulting from unforeseen side effects;
the Company's ability to establish and maintain strategic partnerships and
other corporate collaborations; the scope of protection the Company is able to
establish and maintain for intellectual property rights and its ability to
operate its business without infringing the intellectual property rights of
others; competitive companies, technologies and the Company's industry;
unforeseen scientific difficulties may develop with the Company's technology;
the Company's ability to retain or attract key employees whose knowledge is
essential to the development of its products; and the Company’s ability to
pursue any strategic transaction or that any transaction, if pursued, will be
completed. Any forward-looking statement in this press release speaks only as
of the date of this press release. The Company undertakes no obligation to
publicly update or review any forward-looking statement, whether as a result
of new information, future developments or otherwise, except as may be
required by any applicable securities laws. More detailed information about
the risks and uncertainties affecting the Company is contained under the
heading "Risk Factors" in Cellect Biotechnology Ltd.'s Annual Report on Form
20-F for the fiscal year ended December 31, 2019 filed with the U.S.
Securities and Exchange Commission, or SEC, which is available on the SEC's
website, www.sec.gov, and in the Company's periodic filings with the SEC.

Cellect Biotechnology Ltd. 
Eyal Leibovitz, Chief Financial Officer


EVC Group LLC 
Michael Polyviou
(732) 933-2754

Cellect Biotechnology Ltd
Consolidated Statement of Operation

                                                                                                   Nine months ended          Nine months ended                         Three months ended                 
                                                                                                   September 30 ,             September 30,                             September 30,                      
                                                                                                   2020                       2020                 2019                 2020                  2019         
                                                                                                   Unaudited                  Unaudited                                                                    
                                                                                                   U.S. dollar s              NIS                                                                          
                                                                                                   (In thousands, except share and per share data)                                                         
 Research and development expenses                                                                 1,218                      4,190                9,551                1,289                 2,465        
 General and administrative expenses                                                               1,727                      5,944                7,832                1,241                 2,768        
 Operating loss                                                                                    2,945                      10,134               17,383               2,530                 5,233        
 Financial expenses (income) due to warrants exercisable into shares                               790                        2,717                (8,020)              (1,090)               (910)        
 Other financial expenses, net                                                                     40                         138                  1,369                193                   489          
 Total comprehensive loss                                                                          3,775                      12,989               10,732               1,633                 4,812        
 Loss per share:                                                                                                                                                                                           
 Basic and diluted loss per share                                                                  0.010                      0.036                0.051                0.004                 0.021        
 Weighted average number of shares outstanding used to compute basic and diluted loss per share    390,949,079                390,949,079          208,771,303          390,949,079           224,087,799  

Cellect Biotechnology Ltd.
Consolidated Balance Sheet Data

                                                                                                                                                                                                           September 30,             September 30,              December 31,            
                                                                                                                                                                                                           2020                      2020                       2019                    
                                                                                                                                                                                                           Unaudited                 Unaudited                  Audited                 
                                                                                                                                                                                                           U.S. dollar s             NIS                                                
                                                                                                                                                                                                           (In thousands, except share and per share data)                              
 CURRENT ASSETS:                                                                                                                                                                                                                                                                        
 Cash and cash equivalents                                                                                                                                                                                 6,071                     20,889                     18,106                  
 Other receivables                                                                                                                                                                                         205                       707                        469                     
                                                                                                                                                                                                           6,276                     21,596                     18,575                  
 NON-CURRENT ASSETS:                                                                                                                                                                                                                                                                    
 Restricted cash                                                                                                                                                                                           96                        329                        328                     
 Right-of-use assets                                                                                                                                                                                       238                       819                        1,035                   
 Other long-term receivables                                                                                                                                                                               19                        66                         94                      
 Property, plant and equipment, net                                                                                                                                                                        379                       1,304                      1,288                   
                                                                                                                                                                                                           732                       2,518                      2,745                   
                                                                                                                                                                                                           7,008                     24,114                     21,320                  
 CURRENT LIABILITIES:                                                                                                                                                                                                                                                                   
 Trade payables                                                                                                                                                                                            71                        243                        158                     
 Other payables                                                                                                                                                                                            579                       1,994                      3,080                   
 Current maturities of lease liability                                                                                                                                                                     136                       468                        396                     
                                                                                                                                                                                                           786                       2,705                      3,634                   
 NON-CURRENT LIABILITIES:                                                                                                                                                                                                                                                               
 Warrants to ADS                                                                                                                                                                                           354                       1,218                      2,172                   
 Lease liability                                                                                                                                                                                           112                       386                        677                     
                                                                                                                                                                                                           466                       1,604                      2,849                   
 Ordinary shares of no par value:                                                                                                                                                                                                                                                       
 Authorized: 500,000,000 shares at December 31, 2019 and September 30, 2020; Issued and outstanding: 390,949,079*) and 224,087,799*) shares as of December 31, 2019 and September 30, 2020, respectively.  -                         -                          -                       
 Additional Paid in Capital                                                                                                                                                                                36,861                    126,839                    108,598                 
 Share-based payments                                                                                                                                                                                      4,721                     16,244                     16,528                  
 Treasury shares                                                                                                                                                                                           (2,739   )                (9,425    )                (9,425          )       
 Accumulated deficit                                                                                                                                                                                       (33,087  )                (113,853  )                (100,864        )       
                                                                                                                                                                                                           5,756                     19,805                     14,837                  
                                                                                                                                                                                                           7,008                     24,114                     21,320                  

*)    Net of 2,641,693 treasury shares of the Company held by the Company.

Cellect Biotechnology Ltd
Consolidated Cash Flow Data

                                                                                                   Nine months ended     Nine months ended                       Three months ended                    
                                                                                                   September 30 ,        September 30,                           September 30,                         
                                                                                                   2020                  2020                 2019               2020                2019              
                                                                                                   Unaudited             Unaudited                                                                     
                                                                                                   U.S. dollar s         NIS                                                                           
                                                                                                   (In thousands)                                                                                      
 Cash flows from operating activities:                                                                                                                                                                 
 Total comprehensive loss                                                                          (3,775     )          (12,989  )           (10,732  )         (1,633  )           (4,812      )     
 Adjustments to reconcile net loss to net cash used in operating activities:                                                                                                                           
 Exchange rate difference                                                                          (61        )          (211     )           -                  (216    )           -                 
 Net financing expenses                                                                            14                    48                   1,087              11                  272               
 Loss (gain) from revaluation of financial assets presented at fair value through profit and loss  -                     -                    8                  -                   2                 
 Depreciation                                                                                      75                    256                  285                86                  93                
 Changes in fair value of traded and not traded warrants                                           790                   2,718                (9,351   )         (1,089  )           (910        )     
 Share-based payment                                                                               138                   476                  1,901              (353    )           1,371             
 Decrease (increase) in other receivables                                                          (61        )          (210     )           146                263                 -                 
 Decrease in other payables                                                                        (334       )          (1,149   )           (1,855   )         (396    )           (1,138      )     
 Depreciation of Right of use - Assets under operating lease                                       79                    272                  457                89                  143               
 Interest received during the period                                                               16                    56                   (75      )         21                  (29         )     
 Net cash used in operating activities                                                             (3,119     )          (10,733  )           (18,129  )         (3,217  )           (5,008      )     
 Cash flows from investing activities:                                                                                                                                                                 
 Restricted deposit, net                                                                           -                     (1       )           -                  1                   -                 
 Sales (Purchase) of property, plant, and equipment                                                (36        )          (124     )           (120     )         (155    )           -                 
 Net cash provided by investing activities                                                         (36        )          (125     )           (120     )         (154    )           -                 
 Cash flows from financing activities:                                                                                                                                                                 
 Exercise of warrants and stock options into shares                                                1,341                 4,615                -                  (92     )           -                 
 Leases liabilities                                                                                (94        )          (324     )           (422     )         (112    )           (143        )     
 Issue of share capital and warrants, net of issue costs                                           2,672                 9,194                23,723             -                   -                 
 Net cash provided (used) by financing activities                                                  3,919                 13,485               23,301             (204    )           (143        )     
 Exchange differences on balances of cash and cash equivalents                                     45                    156                  (1,012   )         195                 (243        )     
 Increase (decrease) in cash and cash equivalents                                                  809                   2,783                4,040              (3,380  )           (5,394      )     
 Balance of cash and cash equivalents at the beginning of the period                               5,262                 18,106               17,809             24,269              27,243            
 Balance of cash and cash equivalents at the end of the period                                     6,071                 20,889               21,849             20,889              21,849            


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