First tranche of funding is to be distributed as biotech innovator meets a key milestone in previously announced €50 million agreement
HAIFA, Israel, May 25, 2021 (GLOBE NEWSWIRE) -- Pluristem Therapeutics Inc. (Nasdaq:PSTI) (TASE:PSTI) (the "Company"), a leading biotechnology company, today announced the receipt of a "Disbursement Offer" in the amount of €20 million (approximately $24 million) from the European Investment Bank (EIB). This disbursement – the first of three tranches of funding – reflects that Pluristem has achieved a key milestone in a previously announced €50 million non-dilutive financing agreement. Pursuant to the EIB agreement, Pluristem expects to receive the first tranche of funds during June 2021.
The proceeds of the first tranche will support research and development (R&D) in the European Union to advance Pluristem's proprietary regenerative cell therapy platform.
The first tranche of €20 million will not be secured and will be payable to the EIB in a single payment five years after the disbursement, with an interest rate of 4%. Following the receipt of the €20 million tranche, Pluristem will have a cash balance of more than $90 million.
Pluristem's CEO and President, Yaky Yanay, said: "The EIB funding allows Pluristem to execute our operational, clinical and R&D activities to advance our regenerative medicine platform. Europe's aging population is growing rapidly, and we believe has a clear need for novel treatments for a range of diseases and conditions to improve quality of life. We are committed to leveraging this funding mechanism to strengthen the development of our product candidates to maturation. We are grateful to the EIB for their ongoing support and confidence in our technology.
Pluristem's key competitive advantages include a state-of-the-art, automated cell expansion technology that draws on 17 years of cell therapy research. Additionally, our in-house manufacturing capabilities enable the production of allogeneic cell product candidates on a mass-scale with batch-to-batch consistency."
Chen Franco-Yehuda, Pluristem's CFO, added, "Pluristem has a strong cash balance to accelerate our R&D efforts to bring new regenerative medicines to those in need. We believe that the EIB financing agreement reflects a creative, non-dilutive form of financing and believe it positions us strongly for the future."
About the European Investment Bank The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
About Pluristem Therapeutics Pluristem Therapeutics Inc. is a leading regenerative medicine company developing novel placenta-based cell therapy product candidates. The Company has reported robust clinical trial data in multiple indications for its patented PLX cell product candidates and is currently conducting late-stage clinical trials in several indications. PLX cell product candidates are believed to release a range of therapeutic proteins in response to inflammation, muscle trauma, hematological disorders and radiation damage. The cells are grown using the Company's proprietary three-dimensional expansion technology and can be administered to patients off-the-shelf, without tissue matching. Pluristem has a strong intellectual property position; a Company-owned and operated GMP-certified manufacturing and research facility; strategic relationships with major research institutions; and a seasoned management team.
Safe Harbor Statement This press release contains express or implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. Federal securities laws. For example, Pluristem is using forward-looking statements when it discusses the expected timing and use of proceeds of the first tranche of funds from the EIB, the belief that the funding will allow it to execute it operational, clinical and R&D activities to advance its regenerative medicine platform and that the funds position it strongly for the future. These forward-looking statements and their implications are based on the current expectations of the management of Pluristem 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. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in technology and market requirements; Pluristem may encounter delays or obstacles in launching and/or successfully completing its clinical trials; Pluristem's products may not be approved by regulatory agencies, Pluristem's technology may not be validated as it progresses further and its methods may not be accepted by the scientific community; Pluristem may be unable to retain or attract key employees whose knowledge is essential to the development of its products; unforeseen scientific difficulties may develop with Pluristem's process; Pluristem's products may wind up being more expensive than it anticipates; results in the laboratory may not translate to equally good results in real clinical settings; results of preclinical studies may not correlate with the results of human clinical trials; Pluristem's patents may not be sufficient; Pluristem's products may harm recipients; changes in legislation may adversely impact Pluristem; inability to timely develop and introduce new technologies, products and applications; loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of Pluristem to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, Pluristem undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risks and uncertainties affecting Pluristem, reference is made to Pluristem's reports filed from time to time with the Securities and Exchange Commission.
Contact:
Dana Rubin Director of Investor Relations 972-74-7107194 danar@pluristem.com
