Cellect Announces a NIS 8 Million Private Placement Led by Foreign Investors

TEL-AVIV, Israel, Feb. 16, 2016 -- Cellect Biomed Ltd. (TASE:CLBD), a developer of innovative technology which enables the functional selection of stem cells, announced today the signing of share purchase agreements with foreign and local investors for a private placement of ordinary shares, raising approximately NIS 8 million. The financing was executed at a share price of NIS 1.39, which reflects an approximate 8.5% premium over the market share price on the Tel Aviv Stock Exchange.

Participants in the private placement included investment firms and private investors from Singapore, Panama and Tanzania, as well as leading Israeli investors, including the Shrem-Zilberman group, and existing shareholders and  an officer of the Company.

The shares allocated in the private placement are subject to a six-month lock-up period, according to applicable Securities Law restriction rules, followed by a period of 18 months of restricted sales. In addition, the Company has allocated one warrant for every three ordinary shares sold in the private placement (coverage of 3:1) at an exercise price of NIS 2.1, which represents a premium of approximately 51% over the transaction price, for a period of 12 months.   

As of September 30, 2015, Cellect had NIS 14.3 million in cash and cash equivalents (including marketable securities), which did not include the approximately NIS 8 million in funds raised by the Company in this private placement.

Ronen Twito, the Company's Deputy CEO and CFO, commented, "We appreciate this strong vote of confidence in Cellect from top foreign and local investors, especially during this period of worldwide stock market instability. The raised capital will enable the Company to continue to advance its clinical and business plans, including its previously announced intention to dual-list its ordinary shares on the U.S. stock exchange."

Cellect is currently making the last preparations for its phase 1/2 clinical trial in leukemia patients undergoing bone marrow transplantation, or BMT, from a related donor.  The Company recently announced that it has received institutional review board (“IRB”) approval (Helsinki Committee) from the Schneider Medical Center in Petah Tikva to conduct a preliminary trial in humans using healthy volunteers.  In the preliminary trial, peripheral blood samples will be collected from healthy volunteers and undergo functional selection through Cellect's unique technology and performed under the same protocols designed for the upcoming phase 1/2 clinical trial.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction.

About Cellect

Cellect develops an innovative technology which enables the functional selection of stem cells based on their sensitivity to apoptosis. This functional-based selection is an international breakthrough in the ability to isolate stem cells from mature cells, thereby improving a variety of stem cells applications.

The company’s first product line will include unique containers for cell selection in an apoptosis-inducing microenvironment. Cellect has proved in extensive lab studies that the use of apoptosis can largely increase the stem cell concentration in samples taken from bone marrow donors, as well as umbilical cord blood. The first commercial product of the company is a medical kit designed for the cancer treatment bone marrow transplantations market, as well as other markets which require cell selection.  The company estimates that in the future its technology will be integrated in many production procedures of stem cell-based product.

Forward-Looking Statements

This press release may contain forward-looking statements, about Cellect's expectations, beliefs or intentions regarding, among other things, its product development efforts, business, financial condition, results of operations, strategies or prospects. In addition, from time to time, Cellect or its representatives have made or may make forward-looking statements, orally or in writing. Forward-looking statements can be identified by the use of forward-looking words such as "believe," "expect," "intend," "plan," "may," "should" or "anticipate" or their negatives or other variations of these words or other comparable words or by the fact that these statements do not relate strictly to historical or current matters. These forward-looking statements may be included in, but are not limited to, various filings made by Cellect with the TASE, press releases or oral statements made by or with the approval of one of Cellect's authorized executive officers. Forward-looking statements relate to anticipated or expected events, activities, trends or results as of the date they are made. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties that could cause Cellect's actual results to differ materially from any future results expressed or implied by the forward-looking statements. Many factors could cause Cellect's actual activities or results to differ materially from the activities and results anticipated in such forward-looking statements, including, but not limited to, the factors summarized in Cellect's filings with the TASE. In addition, Cellect operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond its control. Cellect does not undertake any obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

U.S. Investor Contact:
Stephen Kilmer
(647) 872-4849