|
State of Israel
|
| |
2836
|
| |
Not Applicable
|
|
|
(State or Other Jurisdiction of
Incorporation or Organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification No.) |
|
|
Michael P. Kaplan, Esq.
Sophia Hudson, Esq. Davis Polk & Wardwell LLP 450 Lexington Avenue New York, New York 10017 (212) 450-4000 |
| |
Yair Geva, Adv.
Ron Ben-Menachem, Adv. Tomer Farkash, Adv. Herzog Fox & Neeman 4 Weizmann Street Tel Aviv 6423904, Israel +972 (3) 692-2020 |
| |
Ivan K. Blumenthal, Esq.
Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo PC 666 Third Avenue New York, New York 10017 (212) 935-3000 |
| |
Chaim Friedland, Adv.
Ari Fried, Adv. Gornitzky & Co. Zion House 45 Rothschild Blvd. Tel Aviv 6578403, Israel +972 (3) 710-9191 |
|
Title of Each Class of Securities to be Registered
|
| |
Proposed Maximum
Aggregate Offering Price |
| |
Amount of
Registration Fee (2) |
| ||||||
Units consisting of: | | | | | | | | | | | | | |
Ordinary shares, par value NIS 0.0000769 per share
|
| | | $ | 15,318,006.66 | | | | | $ | 1,907.09 | | |
Warrants to purchase ordinary shares, par value NIS 0.0000769 per share
(3)
|
| | | | — | | | | | | — | | |
Ordinary shares, par value NIS 0.0000769 per share, issuable upon exercise of the warrants to purchase ordinary shares
|
| | | $ | 9,583,337.50 | | | | | $ | 1,193.13 | | |
Total | | | | | | | | | | $ | 3,100.22 | | |
| | |
Price to Public
|
| |
Underwriting
Discounts and Commissions |
| |
Proceeds to
Company (1) |
| |||||||||
Per unit
|
| | | $ | | | | | $ | | | | | $ | | | |||
Total
|
| | | $ | | | | | | $ | | | | | | $ | | | |
| | |
Page
|
| |||
| | | | ii | | | |
| | | | ii | | | |
| | | | 1 | | | |
| | | | 14 | | | |
| | | | 54 | | | |
| | | | 56 | | | |
| | | | 57 | | | |
| | | | 58 | | | |
| | | | 60 | | | |
| | | | 62 | | | |
| | | | 63 | | | |
| | | | 65 | | | |
| | | | 78 | | |
| | | | | | |
Year Ended December 31,
|
| |||||||||
| | | | | | |
2017
|
| |
2016
|
| ||||||
| | | | | | |
(In thousands, except shares and
per share data) |
| |||||||||
| | | | Statements of comprehensive loss: | | | | | | | | | | | | | |
| | | |
Research and development expenses
|
| | | $ | 2,768 | | | | | $ | 2,648 | | |
| | | |
General and administrative expenses
|
| | | | 8,575 | | | | | | 2,719 | | |
| | | |
Total operating loss
|
| | | | 11,343 | | | | | | 5,367 | | |
| | | | Financial income: | | | | | | | | | | | | | |
| | | |
Income from change in fair value of financial liabilities at fair value
|
| | | | (251 ) | | | | | | (4,311 ) | | |
| | | |
Other financial expenses, net
|
| | | | 105 | | | | | | 143 | | |
| | | |
Financial income, net
|
| | | | (146 ) | | | | | | (4,168 ) | | |
| | | |
Net comprehensive loss
|
| | | $ | 11,197 | | | | | $ | 1,199 | | |
| | | | Loss per ordinary share (1) | | | | | | | | | | | | | |
| | | |
Basic
|
| | | $ | 324 | | | | | $ | 35 | | |
| | | |
Diluted
|
| | | $ | 324 | | | | | $ | 102 | | |
| | | |
Weighted average number of ordinary shares used in computing loss per ordinary share
(1)
|
| | | | | | | | | | | | |
| | | |
Basic
|
| | | | 34,544 | | | | | | 34,409 | | |
| | | |
Diluted
|
| | | | 34,544 | | | | | | 51,972 | | |
| | | | Pro forma loss per ordinary share (2) (unaudited) | | | | | | | | | | | | | |
| | | |
Basic
|
| | | | 1.35 | | | | | | 0.38 | | |
| | | |
Diluted
|
| | | | 1.39 | | | | | | 0.65 | | |
| | | |
Weighted average number of ordinary shares used in computing pro forma loss per share
(2)
(unaudited)
|
| | | | | | | | | | | | |
| | | |
Basic
|
| | | | 8,573,391 | | | | | | 7,366,662 | | |
| | | |
Diluted
|
| | | | 8,918,229 | | | | | | 8,650,509 | | |
|
| | | | | | |
As of December 31, 2017
|
| |||||||||||||||
| | | | | | |
Actual
|
| |
Pro forma
(1)
|
| |
Pro forma as
Adjusted (2) |
| |||||||||
| | | | | | |
(In thousands)
|
| |||||||||||||||
| | | | Statements of financial position data: | | | | | | | | | | | | | | | | | | | |
| | | |
Cash and cash equivalents
|
| | | $ | 11,746 | | | | | $ | 11,746 | | | | | $ | 21,771 | | |
| | | |
Other current assets
|
| | | | 671 | | | | | | 671 | | | | | | 671 | | |
| | | |
Total current assets
|
| | | | 12,417 | | | | | | 12,417 | | | | | | 22,442 | | |
| | | |
Property and equipment
|
| | | | 207 | | | | | | 207 | | | | | | 207 | | |
| | | |
Intangible assets
|
| | | | 654 | | | | | | 654 | | | | | | 654 | | |
| | | |
Total assets
|
| | | $ | 13,278 | | | | | $ | 13,278 | | | | | $ | 23,303 | | |
| | | |
Accounts payable – Trade and other
|
| | | | 2,020 | | | | | | 2,020 | | | | | | 2,020 | | |
| | | |
Total current liabilities
|
| | | | 2,020 | | | | | | 2,020 | | | | | | 2,020 | | |
| | | |
Long-term convertible loans
|
| | | | 3,893 | | | | | | — | | | | | | — | | |
| | | |
Preferred shares
|
| | | | 33,455 | | | | | | — | | | | | | — | | |
| | | |
Warrants to purchase preferred shares and ordinary shares
|
| | | | 5,398 | | | | | | — | | | | | | 2,240 (3) | | |
| | | |
Severance pay obligations, net
|
| | | | 70 | | | | | | 70 | | | | | | 70 | | |
| | | |
Total liabilities
|
| | | $ | 44,836 | | | | | $ | 2,090 | | | | | $ | 4,330 | | |
| | | |
Equity (capital deficiency)
|
| | | $ | (31,558 ) | | | | | $ | 11,188 | | | | | $ | 18,973 | | |
| | | |
Working capital
(4)
|
| | | $ | 10,397 | | | | | $ | 10,397 | | | | | $ | 20,422 | | |
|
| | |
As of December 31, 2017
|
| |||||||||||||||
| | |
Actual (Audited)
|
| |
Pro forma
|
| |
Pro forma as
Adjusted |
| |||||||||
| | |
(In thousands)
|
| |||||||||||||||
Cash and cash equivalents
|
| | | $ | 11,746 | | | | | $ | 11,746 | | | | | $ | 21,771 | | |
Convertible loans
|
| | | $ | 3,893 | | | | | $ | — | | | | | $ | — | | |
Series A preferred shares of NIS 0.01 par value; 25,000 authorized, 10,222 issued and outstanding, actual; no authorized, no issued and outstanding, pro forma; no shares authorized, issued and outstanding, pro forma as adjusted
|
| | | | 8,810 | | | | | | — | | | | | | — | | |
Series B preferred shares of NIS 0.01 par value; 35,000 authorized, 14,283 shares issued and outstanding, actual; no authorized, no issued and outstanding, pro forma; no shares authorized, issued and outstanding, pro forma as adjusted
|
| | | | 12,980 | | | | | | — | | | | | | — | | |
Series B-1 preferred shares of NIS 0.01 par value; 17,000 authorized, 13,229 shares issued and outstanding, actual; no authorized, no issued and outstanding, pro forma; no shares authorized, issued and outstanding, pro forma as adjusted
|
| | | | 11,665 | | | | | | — | | | | | | — | | |
Warrants to purchase preferred shares and ordinary shares
|
| | | | 5,398 | | | | | | — | | | | | | 2,240 (1) | | |
Equity (capital deficiency): | | | | | | | | | | | | | | | | | | | |
Ordinary shares; 1,000,000 authorized, 34,544 issued and outstanding, actual, of NIS 0.01 par value; 130,000,000 authorized, 10,018,320 issued and outstanding, pro forma of NIS 0.0000769 par value; 130,000,000 authorized, 11,361,654 issued and outstanding, pro forma as adjusted of NIS 0.0000769 par value;
|
| | | | * | | | | | | * | | | | | | * | | |
Other comprehensive income
|
| | | | 41 | | | | | | 41 | | | | | | 41 | | |
Other reserves
|
| | | | 7,361 | | | | | | 12,759 | | | | | | 12,759 | | |
Additional paid-in capital
|
| | | | 2,853 | | | | | | 40,201 | | | | | | 48,420 | | |
Accumulated deficit
|
| | | | (41,813 ) | | | | | | (41,813 ) | | | | | | (42,247 ) | | |
Total equity (capital deficiency)
|
| | | | (31,558 ) | | | | | | 11,188 | | | | | | 18,973 | | |
Total capitalization
|
| | | $ | 11,188 | | | | | $ | 11,188 | | | | | $ | 21,213 | | |
|
| | | |
Assumed initial public offering price per ordinary share
|
| |
|
| | | $ | 9.00 | | | |||
| | | |
Pro forma net tangible book value per ordinary share
|
| | | $ | 1.05 | | | | | | | | |
| | | |
Increase in pro forma net tangible book value per share attributable to this offering
|
| | | $ | 0.56 | | | | | | | | |
| | | |
Dilution per ordinary share to new investors in this offering
|
| | | | | | | | | $ | 7.39 | | |
|
| | |
Shares Purchased
|
| |
Total Consideration
(thousands) |
| |
Average Price
Per Share |
| |||||||||||||||||||||
| | |
Number
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| ||||||||||||||||||
Existing shareholders
|
| | | | 10,018,320 | | | | | | 88.2 % | | | | | $ | 30,532 | | | | | | 71.8 % | | | | | $ | 3.0 | | |
Representative shares
|
| | | | 10,000 | | | | | | 0.1 % | | | | | | — | | | | | | — | | | | | | — | | |
New investors
|
| | | | 1,333,334 | | | | | | 11.7 % | | | | | | 12,000 | | | | | | 28.2 % | | | | | | 9.0 | | |
Total
|
| | | | 11,361,654 | | | | | | 100 % | | | | | $ | 42,532 | | | | | | 100 % | | | | | | | | |
|
| | |
Period-end
|
| |
Average for
Period |
| |
Low
|
| |
High
|
| ||||||||||||
| | |
(NIS per U.S. dollar)
|
| |||||||||||||||||||||
Year Ended December 31: | | | | | | | | | | | | | | | | | | | | | | | | | |
2012
|
| | | | 3.7330 | | | | | | 3.8438 | | | | | | 3.7000 | | | | | | 4.0840 | | |
2013
|
| | | | 3.4710 | | | | | | 3.6023 | | | | | | 3.4710 | | | | | | 3.7910 | | |
2014
|
| | | | 3.8890 | | | | | | 3.5928 | | | | | | 3.4020 | | | | | | 3.9940 | | |
2015
|
| | | | 3.9020 | | | | | | 3.8869 | | | | | | 3.7610 | | | | | | 4.0530 | | |
2016
|
| | | | 3.8450 | | | | | | 3.8406 | | | | | | 3.7460 | | | | | | 3.9830 | | |
2017
|
| | | | 3.4670 | | | | | | 3.5997 | | | | | | 3.4670 | | | | | | 3.8600 | | |
Month Ended: | | | | | | | | | | | | | | | | | | | | | | | | | |
January 31, 2018
|
| | | | 3.4050 | | | | | | 3.4232 | | | | | | 3.3880 | | | | | | 3.4600 | | |
February 28, 2018
|
| | | | 3.4850 | | | | | | 3.4944 | | | | | | 3.4270 | | | | | | 3.5350 | | |
March 31, 2018
|
| | | | 3.5140 | | | | | | 3.4689 | | | | | | 3.4310 | | | | | | 3.5140 | | |
April 30, 2018
|
| | | | 3.5880 | | | | | | 3.5385 | | | | | | 3.5030 | | | | | | 3.5970 | | |
May 31, 2018
|
| | | | 3.5660 | | | | | | 3.5910 | | | | | | 3.6540 | | | | | | 3.6320 | | |
June (through June 11, 2018)
|
| | | | 3.5720 | | | | | | 3.5697 | | | | | | 3.5650 | | | | | | 3.5750 | | |
| | | | | | |
Year Ended December 31,
|
| |||||||||
| | | | | | |
2017
|
| |
2016
|
| ||||||
| | | | | | |
(In thousands, except shares and
per share data) |
| |||||||||
| | | | Statements of comprehensive loss: | | | | | | | | | | | | | |
| | | |
Research and development expenses
|
| | | $ | 2,768 | | | | | $ | 2,648 | | |
| | | |
General and administrative expenses
|
| | | | 8,575 | | | | | | 2,719 | | |
| | | |
Total operating loss
|
| | | | 11,343 | | | | | | 5,367 | | |
| | | | Financial income: | | | | | | | | | | | | | |
| | | |
Income from change in fair value of financial liabilities at fair value
|
| | | | (251 ) | | | | | | (4,311 ) | | |
| | | |
Other financial expenses, net
|
| | | | 105 | | | | | | 143 | | |
| | | |
Financial (income) expenses, net
|
| | | | (146 ) | | | | | | (4,168 ) | | |
| | | |
Net comprehensive loss
|
| | | $ | 11,197 | | | | | $ | 1,199 | | |
| | | | Loss per ordinary share (1) | | | | | | | | | | | | | |
| | | |
Basic
|
| | | $ | 324 | | | | | $ | 35 | | |
| | | |
Diluted
|
| | | $ | 324 | | | | | $ | 102 | | |
| | | |
Weighted average number of ordinary shares used in computing basic loss per ordinary share
(1)
|
| | | | 34,544 | | | | | | 34,409 | | |
| | | |
Weighted average number of ordinary shares used in computing diluted loss per ordinary share
(1)
|
| | | | 34,544 | | | | | | 51,972 | | |
|
| | | | | | |
As of
December 31, 2017 |
| |||
| | | | | | |
(In thousands)
|
| |||
| | | | Statements of financial position data: | | | | | | | |
| | | |
Cash and cash equivalents
|
| | | | 11,746 | | |
| | | |
Other current assets
|
| | | | 671 | | |
| | | |
Total current assets
|
| | | | 12,417 | | |
| | | |
Property and equipment
|
| | | | 207 | | |
| | | |
Intangible assets
|
| | | | 654 | | |
| | | |
Total assets
|
| | | $ | 13,278 | | |
| | | |
Accounts payable-Trade and other
|
| | | | 2,020 | | |
| | | |
Total current liabilities
|
| | | | 2,020 | | |
| | | |
Long term convertible loans
|
| | | | 3,893 | | |
| | | |
Preferred shares
|
| | | | 33,453 | | |
| | | |
Warrants to purchase preferred shares and shares
|
| | | | 5,398 | | |
| | | |
Severance pay obligations, net
|
| | | | 70 | | |
| | | |
Total liabilities
|
| | | $ | 44,836 | | |
| | | |
Capital deficiency
|
| | | $ | (31,558 ) | | |
| | | |
Working capital
(1)
|
| | | $ | 10,397 | | |
|
| | | | | | |
Year ended
December 31, |
| |||||||||
| | | | | | |
2017
|
| |
2016
|
| ||||||
| | | | | | |
(in thousands)
|
| |||||||||
| | | |
Research and development
|
| | | $ | 323 | | | | | $ | 130 | | |
| | | |
General and administrative
|
| | | | 4,562 | | | | | | 1,360 | | |
| | | |
Total
|
| | | $ | 4,885 | | | | | $ | 1,490 | | |
|
| | | | | | |
December 31,
|
| |||||||||
| | | | | | |
2017
|
| |
2016
|
| ||||||
| | | |
Preferred B price per share*
|
| | | | $908.78 | | | | | | | | |
| | | |
Value of equity*
|
| |
$78 million
|
| |
$71 million
|
| ||||||
| | | |
Volatility
|
| | | | 55 % | | | | | | 77 % | | |
| | | |
Probability of entering Phase 2b/3 trial for EB612
|
| | | | 70 % | | | | | | 70 % | | |
| | | |
Probability for IPO/shares registration
|
| | | | 85 % | | | | | | 50 % | | |
| | | | | | |
December 31,
2016 |
|
| | | |
WACC
|
| |
22%
|
|
| | | |
Commencement of sales
|
| |
2021 – 2025
|
|
| | | |
Probability of reaching sales
|
| |
20.1% – 37.9%
|
|
| | | | | | |
December 31,
2016 |
|
| | | |
Risk free
(1)
|
| |
0.99%
|
|
| | | |
Market premium
(2)
|
| |
5.69%
|
|
| | | |
Specific risk
(3)
|
| |
16.29%
|
|
| | | | Beta (4) | | |
0.84
|
|
| | | |
WACC
|
| |
22%
|
|
| | |
Year Ended
December 31, |
| |
Increase (Decrease)
|
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
$
|
| |
%
|
| ||||||||||||
| | |
(In thousands, except for percentage information)
|
| |||||||||||||||||||||
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | $ | 2,768 | | | | | $ | 2,648 | | | | | $ | 120 | | | | | | 4.5 % | | |
General and administrative
|
| | | | 8,575 | | | | | | 2,719 | | | | | | 5,856 | | | | | | 215.4 % | | |
Operating loss
|
| | | | 11,343 | | | | | | 5,367 | | | | | | 5,976 | | | | | | 111.4 % | | |
Financial income, net
|
| | | | (146 ) | | | | | | (4,168 ) | | | | | | 4,022 | | | | | | — | | |
Net loss (income)
|
| | | $ | 11,197 | | | | | $ | 1,199 | | | | | $ | 9,998 | | | | | | — | | |
|
| | | | | | | | ||||||||||
| | | | | | |
2017
|
| |
2016
|
| ||||||
| | | | | | |
(in thousands)
|
| |||||||||
| | | |
Cash used in operating activities
|
| | | $ | (4,526 ) | | | | | $ | (3,142 ) | | |
| | | |
Cash provided by (used in) investing activities
|
| | | | 1,002 | | | | | | (1,116 ) | | |
| | | |
Cash provided by financing activities
|
| | | | 11,107 | | | | | | 7,216 | | |
| | | |
Net increase in cash and cash equivalents
|
| | | $ | 7,583 | | | | | $ | 2,958 | | |
|
| | |
Payments due by period
|
| |||||||||||||||||||||||||||
Contractual Obligations
|
| |
Total
|
| |
Less than
1 year |
| |
1 – 3 years
|
| |
3 – 5 years
|
| |
More than
5 years |
| |||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||
Operating leases for facility and vehicles
|
| | | $ | 231 | | | | | $ | 98 | | | | | $ | 133 | | | | | $ | — | | | | | $ | — | | |
2012 Convertible Loans
|
| | | | 1,288 | | | | | | 34 | | | | | | — | | | | | | — | | | | | | 1,254 | | |
Total
|
| | | $ | 1,519 | | | | | $ | 132 | | | | | $ | 133 | | | | | $ | — | | | | | $ | 1,254 | | |
|
Program
|
| |
Indication
|
| |
Description
|
| |
Stage of
Development |
| |
Status
|
|
EB612
|
| | Hypoparathyroidism | | | Oral PTH (1-34) | | | Phase 2a completed | | | Phase 2a successfully completed; results reported Q3 2015 | |
| | | | | | | | | | | | PK/PD study head to head with Natpara in hypoparathyroid patients expected in H2 2018 | |
EB613
|
| | Osteoporosis | | | Oral PTH (1-34) | | | Phase 1 | | | Pre-IND submission expected H2 2018 | |
| | | | | | | | | | | | Phase 2a initiation expected 2019 | |
Formulation
|
| |
Participants
|
| |
Cmax (pg/ml)
|
| |
Tmax (min)
|
| |
Coefficient of
Variation (%) |
| ||||||
EB612 Oral PTH
|
| | | | 10 | | | |
235.6 ± 36
|
| |
16.5 ± 1.2
|
| | | | 48 | | |
Injectable PTH
|
| | | | 10 | | | |
184.2 ± 26
|
| |
16 ± 1.8
|
| | | | 45 | | |
Class of Drug
|
| |
Name
(Producer) |
| |
Method of Action
|
| |
Known Side Effects
|
| |
2016
Branded Sales (in millions) |
|
Injectable PTH | | | Forteo (Eli Lilly) | | | Increases bone mineral density by inhibiting the resorption of bone, promotes new bone formation | | | Decrease in blood pressure, increase in serum calcium in the blood; nausea, joint aches, pain, leg cramps, injection site reactions | | |
$1,500
|
|
Monoclonal antibody | | | Prolia (Amgen) | | | Blocks the breakdown of bones by binding to RANKL protein that is essential to activate osteoclasts | | | Hypocalcemia, serious infections, dermatologic adverse reactions, osteonecrosis of the jaw, back pain, pain in extremity, musculoskeletal pain, hypercholesterolemia, and cystitis | | |
$1,635
|
|
Selective estrogen receptor modulators (SERMs) | | | Evista (Eli Lilly) | | | Binds to estrogen receptors at a selective tissue, with an agonist effect on bone tissue | | | Deep vein thrombosis, pulmonary embolism, retinal vein thrombosis, increased risk of death due to stroke, endometrial cancer, cardiovascular disease | | |
$172
|
|
Injectable abaloparatide | | | TYMLOS (Radius Health) | | | Similar to PTH, binds to PTH receptors with a higher affinity to bone formation receptors, increasing bone mineral density | | | Osteosarcoma, orthostatic hypotension, hypercalcemia, hypercalciuria, dizziness, nausea, headache, palpitations, fatigue, upper abdominal pain and vertigo | | |
N/A (launched in April 2017)
|
|
Bisphosphonate | | | Fosamax (Merck) Zometa (Novartis) | | | Prevent bone loss by inducing cell death (apoptosis) in the osteoclast cells | | | Irritation of the gastrointestinal mucosa, hypocalcemia, severe musculoskeletal pain, osteonecrosis of the jaw | | |
N/A (Generic) N/A (Generic)
|
|
Company/Technology
|
| |
Molecule
|
| |
API MW (g/mole)
|
| |
Bioavailability (F)
|
|
Entera Bio
|
| |
PTH (1-34)
|
| |
4118
|
| |
1.5%
|
|
Novartis/Emisphere (Eligen – CNAC)
(1)
|
| |
PTH (1-34)
|
| |
4118
|
| |
0.2 – 0.5%
|
|
Enteris Biopharma – Unigen (Peptelligence)
(2)
|
| |
PTH (1-31)
|
| |
3719
|
| |
0.52%
|
|
Multiple manufacturers
(3)
|
| |
Desmopressin
|
| |
1069
|
| |
0.16%
|
|
Chiasma (TPE)
(4)
|
| |
Octreotide
|
| |
1019 (Cyclic peptide)
|
| |
0.67%
|
|
Proxima Concepts (AXCESS)
(5)
|
| |
Insulin
|
| |
5733
|
| |
0.7%
|
|
|
Name
|
| |
Age
|
| |
Position
|
|
| Executive Officers | | | | | | | |
| Dr. Phillip Schwartz | | |
56
|
| | Chief Executive Officer and Director | |
| Mira Rosenzweig | | |
46
|
| | Chief Financial Officer | |
| Dr. Hillel Galitzer | | |
39
|
| | Chief Operating Officer | |
| Dr. Eric Lang | | |
56
|
| | Chief Medical Officer | |
| Directors | | | | | | | |
| Luke M. Beshar (1) | | |
59
|
| | Chairman of the Board | |
| Roger Garceau | | |
64
|
| | Director | |
|
Gerald Lieberman
(2)(3)(4)
|
| |
71
|
| | Director | |
|
Zeev Bronfeld
(2)(3)
|
| |
66
|
| | Director | |
| David Ben Ami | | |
56
|
| | Director | |
| Chaim Davis | | |
40
|
| | Director | |
|
Yonatan Malca
(2)(3)
|
| |
51
|
| | Director | |
Name
|
| |
Position
|
| |
Annual 2017 Compensation
|
| |
Total
|
| ||||||||||||||||||||||||
|
Base Salary
and Related Benefits (1) |
| |
Bonus
|
| |
Retirement,
Service Fees and Other Similar Benefits |
| |
Share Based
Compensation (2) |
| |||||||||||||||||||||||
Luke M. Beshar
|
| | Chairman of the board of directors | | | | $ | — | | | | | | — | | | | | | 294,469 | | | | | | 3,054,263 | | | | | | 3,333,185 | | |
Dr. Roger Garceau
|
| | Chief Development Advisor | | | | $ | — | | | | | | — | | | | | | 120,773 | | | | | | 886,925 | | | | | | 1,000,925 | | |
Dr. Phillip Schwartz
|
| | Chief Executive Officer and Director | | | | $ | 300,791 | | | | | | 150,000 | | | | | | 44,497 | | | | | | 120,240 | | | | | | 615,528 | | |
Gerald Lieberman
|
| | Director | | | | $ | — | | | | | | — | | | | | | 17,940 | | | | | | 482,177 | | | | | | 500,117 | | |
Name
|
| |
Position
|
| |
Annual 2017 Compensation
|
| |
Total
|
| ||||||||||||||||||||||||
|
Base Salary
and Related Benefits (1) |
| |
Bonus
|
| |
Retirement,
Service Fees and Other Similar Benefits |
| |
Share Based
Compensation (2) |
| |||||||||||||||||||||||
Dr. Hillel Galitzer
|
| | Chief Operating Officer | | | | $ | 201,749 | | | | | | 60,000 | | | | | | 24,808 | | | | | | 58,211 | | | | | | 344,768 | | |
| | |
Shares Beneficially
Owned Prior to the Offering (1) |
| |
Shares Beneficially
Owned After the Offering (Assuming No Exercise of the Over-Allotment Option) (1) |
| |
Shares Beneficially
Owned After the Offering (Assuming Full Exercise of the Over-Allotment Option) (1) |
| |||||||||||||||||||||||||||
Name of Beneficial Owner
|
| |
Number
|
| |
Percentage
|
| |
Number
|
| |
Percentage
|
| |
Number
|
| |
Percentage
|
| ||||||||||||||||||
Principal Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
D.N.A Biomedical Solutions Ltd
(2)
|
| | | | 3,978,780 | | | | | | 39.7 % | | | | | | 3,978,780 | | | | | | 35.0 % | | | | | | 3,978,780 | | | | | | 34.4 % | | |
Centillion Fund
(3)
|
| | | | 2,192,060 | | | | | | 19.8 % | | | | | | 2,192,060 | | | | | | 17.6 % | | | | | | 2,192,060 | | | | | | 17.4 % | | |
Pontifax (Israel), Pontifax (Cayman) IV L.P. and Pontiax (China) IV Fund L.P. (collectively, “Pontifax”)
(4)
|
| | | | 853,450 | | | | | | 8.3 % | | | | | | 853,450 | | | | | | 7.4 % | | | | | | 853,450 | | | | | | 7.2 % | | |
Capital Point Ltd.
(5)
|
| | | | 799,370 | | | | | | 15.2 % | | | | | | 799,370 | | | | | | 13.4 % | | | | | | 799,370 | | | | | | 13.2 % | | |
Menachem Raphael
(6)
|
| | | | 540,800 | | | | | | 6.8 % | | | | | | 540,800 | | | | | | 6.0 % | | | | | | 540,800 | | | | | | 5.9 % | | |
Executive Officers and Directors: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Zeev Bronfeld
(7)
|
| | | | 3,978,780 | | | | | | 39.7 % | | | | | | 3,978,780 | | | | | | 35.0 % | | | | | | 3,978,780 | | | | | | 34.4 % | | |
Yonatan Malca
(8)
|
| | | | 3,978,780 | | | | | | 39.7 % | | | | | | 3,978,780 | | | | | | 35.0 % | | | | | | 3,978,780 | | | | | | 34.4 % | | |
Dr. Phillip Schwartz
(9)
|
| | | | 624,130 | | | | | | 5.9 % | | | | | | 624,130 | | | | | | 5.2 % | | | | | | 624,130 | | | | | | 5.1 % | | |
Dr. Eric Lang
(10)
|
| | | | * | | | | | | * | | | | | | * | | | | | | * | | | | | | * | | | | | | * | | |
Luke M. Beshar
(11)
|
| | | | 614,380 | | | | | | 5.8 % | | | | | | 614,380 | | | | | | 5.1 % | | | | | | 614,380 | | | | | | 5.0 % | | |
David Ben Ami
(12)
|
| | | | 315,900 | | | | | | 3.1 % | | | | | | 315,900 | | | | | | 2.8 % | | | | | | 315,900 | | | | | | 2.7 % | | |
Gerald Lieberman
(13)
|
| | | | 150,670 | | | | | | 1.5 % | | | | | | 150,670 | | | | | | 1.3 % | | | | | | 150,670 | | | | | | 1.3 % | | |
Chaim Davis
(14)
|
| | | | 139,230 | | | | | | 1.4 % | | | | | | 139,230 | | | | | | 1.2 % | | | | | | 139,230 | | | | | | 1.2 % | | |
Dr. Roger J. Garceau
(15)
|
| | | | 209,690 | | | | | | 2.1 % | | | | | | 209,690 | | | | | | 1.8 % | | | | | | 209,690 | | | | | | 1.8 % | | |
Mira Rosenzweig
(16)
|
| | | | * | | | | | | * | | | | | | * | | | | | | * | | | | | | * | | | | | | * | | |
Dr. Hillel Galitzer
(17)
|
| | | | * | | | | | | * | | | | | | * | | | | | | * | | | | | | * | | | | | | * | | |
All executive officers and directors as a group (11 persons)
(18)
|
| | | | 6,161,870 | | | | | | 52.1 % | | | | | | 6,161,870 | | | | | | 46.8 % | | | | | | 6,161,870 | | | | | | 46.1 % | | |
| | | |
Underwriter
|
| |
Number of
Units |
| |||
| | | |
Maxim Group LLC
|
| | | | | | |
| | | |
Joseph Gunnar & Co. LLC
|
| | | | | | |
| | | | Total | | | | | | | |
|
| | | | | | |
Per
Unit (1) |
| |
Total Without
Exercise of Over-Allotment Option |
| |
Total With Full
Exercise of Over-Allotment Option |
| |||||||||
| | | |
Public offering price
|
| | | $ | | | | | | $ | | | | | | $ | | | |
| | | |
Underwriting discounts and commissions
|
| | | $ | | | | | $ | | | | | $ | | | |||
| | | |
Proceeds, before expenses, to us
|
| | | $ | | | | | $ | | | | | $ | | |
| | | |
SEC registration fee
|
| | | $ | 10,062 | | |
| | | |
NASDAQ Capital Market listing fee
|
| | | $ | 50,000 | | |
| | | |
FINRA filing fee
|
| | | $ | 12,622 | | |
| | | |
Printing expenses
|
| | | $ | 100,000 | | |
| | | |
Legal fees and expenses
|
| | | $ | 450,000 | | |
| | | |
Accounting fees and expenses
|
| | | $ | 300,000 | | |
| | | |
Transfer agent’s fees
|
| | | $ | 33,000 | | |
| | | |
Miscellaneous
|
| | | $ | 144,316 | | |
| | | |
Total
|
| | | $ | 1,000,000 | | |
| | |
Page
|
| |||
Audited Financial Statements | | | | | | | |
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 – F- 7 | | | |
| | | | F-8 – F- 30 | | |
| | | | | |
December 31
|
| |||||||||
| | |
Note
|
| |
2017
|
| |
2016
|
| ||||||
| | | | | |
U.S. dollars in thousands
|
| |||||||||
Assets
|
| | | | | | | | | | | | | | | |
CURRENT ASSETS: | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| |
5
|
| | | | 11,746 | | | | | | 4,163 | | |
Restricted deposits
|
| |
7a2
|
| | | | — | | | | | | 1,075 | | |
Other current assets
|
| |
12a
|
| | | | 671 | | | | | | 195 | | |
TOTAL CURRENT ASSETS
|
| | | | | | | 12,417 | | | | | | 5,433 | | |
NON-CURRENT ASSETS: | | | | | | | | | | | | | | | | |
Property and equipment
|
| | | | | | | 207 | | | | | | 199 | | |
Intangible assets
|
| |
6
|
| | | | 654 | | | | | | 654 | | |
TOTAL NON-CURRENT ASSETS
|
| | | | | | | 861 | | | | | | 853 | | |
TOTAL ASSETS
|
| | | | | | | 13,278 | | | | | | 6,286 | | |
Liabilities net of capital deficiency
|
| | | | | | | | | | | | | | | |
CURRENT LIABILITIES: | | | | | | | | | | | | | | | | |
Accounts payable:
|
| | | | | | | | | | | | | | | |
Trade
|
| | | | | | | 596 | | | | | | 53 | | |
Other
|
| |
12b
|
| | | | 1,424 | | | | | | 604 | | |
Convertible loans
|
| |
7
|
| | | | — | | | | | | 9,885 | | |
TOTAL CURRENT LIABILITIES
|
| | | | | | | 2,020 | | | | | | 10,542 | | |
NON-CURRENT LIABILITIES: | | | | | | | | | | | | | | | | |
Convertible loan
|
| |
7
|
| | | | 3,893 | | | | | | 4,835 | | |
Preferred shares
|
| |
8
|
| | | | 33,455 | | | | | | 11,031 | | |
Warrants to purchase preferred shares and shares
|
| |
7,8
|
| | | | 5,398 | | | | | | 4,800 | | |
Liability to issue preferred shares and warrants
|
| |
8
|
| | | | — | | | | | | 273 | | |
Severance pay obligations, net
|
| | | | | | | 70 | | | | | | 51 | | |
TOTAL NON-CURRENT LIABILITIES
|
| | | | | | | 42,816 | | | | | | 20,990 | | |
TOTAL LIABILITIES
|
| | | | | | | 44,836 | | | | | | 31,532 | | |
COMMITMENTS AND CONTINGENCIES
|
| |
9
|
| | | | | | | | | | | | |
CAPITAL DEFICIENCY:
|
| |
10
|
| | | | | | | | | | | | |
Ordinary Shares, NIS 0.01 par value:
|
| | | | | | | | | | | | | | | |
Authorized – as of December 31, 2017 and 2016, 1,000,000 shares; issued and outstanding as of December 31, 2017 and 2016 – 34,544 shares
|
| | | | | | | * | | | | | | * | | |
Accumulated other comprehensive income
|
| | | | | | | 41 | | | | | | 41 | | |
Other reserves
|
| | | | | | | 7,361 | | | | | | 2,844 | | |
Additional paid in capital
|
| | | | | | | 2,853 | | | | | | 2,485 | | |
Accumulated deficit
|
| | | | | | | (41,813 ) | | | | | | (30,616 ) | | |
TOTAL CAPITAL DEFICIENCY
|
| | | | | | | (31,558 ) | | | | | | (25,246 ) | | |
TOTAL LIABILITIES NET OF CAPITAL DEFICIENCY
|
| | | | | | | 13,278 | | | | | | 6,286 | | |
|
|
Mr. Luke M. Beshar
Chairman of the Board |
| |
Mr. Philip Schwartz
Chief Executive Officer |
| |
Mrs. Mira Rosenzweig
Chief Financial Officer |
|
| | | | | |
Year ended December 31
|
| |||||||||
| | |
Note
|
| |
2017
|
| |
2016
|
| ||||||
| | | | | |
U.S. dollars in thousands
|
| |||||||||
RESEARCH AND DEVELOPMENT EXPENSES
|
| | | | | | | 2,768 | | | | | | 2,648 | | |
GENERAL AND ADMINISTRATIVE EXPENSES
|
| | | | | | | 8,575 | | | | | | 2,719 | | |
OPERATING LOSS
|
| | | | | | | 11,343 | | | | | | 5,367 | | |
FINANCIAL INCOME:
|
| |
7,8
|
| | | | | | | | | | | | |
Income from change in fair value of financial liabilities at fair value
|
| | | | | | | (251 ) | | | | | | (4,311 ) | | |
Other financial expenses, net
|
| | | | | | | 105 | | | | | | 143 | | |
FINANCIAL EXPENSES (INCOME),
net
|
| | | | | | | (146 ) | | | | | | (4,168 ) | | |
NET COMPREHENSIVE LOSS
|
| | | | | | | 11,197 | | | | | | 1,199 | | |
|
| | | | | |
U.S. dollars (except for
share numbers) |
| |||||||||
LOSS PER ORDINARY SHARE
–
|
| |
13
|
| | | | | | | | | | | | |
Basic
|
| | | | | | | 324 | | | | | | 35 | | |
Diluted
|
| | | | | | | 324 | | | | | | 102 | | |
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES
–
|
| | | | | | | | | | | | | | | |
Basic
|
| | | | | | | 34,544 | | | | | | 34,409 | | |
Diluted
|
| | | | | | | 34,544 | | | | | | 51,972 | | |
|
| | |
Number of
ordinary shares |
| |
Ordinary
Shares- Amount |
| |
Accumulated
other comprehensive income |
| |
Other
reserves |
| |
Additional
paid in capital |
| |
Accumulated
deficit |
| |
Total
|
| |||||||||||||||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||||||||||||||||||||||||||
BALANCE AT JANUARY 1, 2016
|
| | | | 34,396 | | | | | | * | | | | | | 41 | | | | | | 1,354 | | | | | | 2,335 | | | | | | (29,417 ) | | | | | | (25,687 ) | | |
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2016:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Issuance of shares
|
| | | | 148 | | | | | | * | | | | | | — | | | | | | — | | | | | | 150 | | | | | | — | | | | | | 150 | | |
Loss for the year
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,199 ) | | | | | | (1,199 ) | | |
Share-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,490 | | | | | | — | | | | | | — | | | | | | 1,490 | | |
BALANCE AT DECEMBER 31, 2016
|
| | | | 34,544 | | | | | | * | | | | | | 41 | | | | | | 2,844 | | | | | | 2,485 | | | | | | (30,616 ) | | | | | | (25,246 ) | | |
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2017:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss for the year
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (11,197 ) | | | | | | (11,197 ) | | |
Share based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | 4,885 | | | | | | — | | | | | | — | | | | | | 4,885 | | |
Reclassification of capital contribution from controlling shareholder (note 7a)
|
| | | | — | | | | | | — | | | | | | — | | | | | | (333 ) | | | | | | 333 | | | | | | — | | | | | | — | | |
Reclassification due to share-based compensation forfeited
|
| | | | — | | | | | | — | | | | | | — | | | | | | (35 ) | | | | | | 35 | | | | | | — | | | | | | — | | |
BALANCE AT DECEMBER 31, 2017
|
| | | | 34,544 | | | | | | * | | | | | | 41 | | | | | | 7,361 | | | | | | 2,853 | | | | | | (41,813 ) | | | | | | (31,558 ) | | |
|
| | |
Year ended December 31
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
U.S. dollars in thousands
|
| |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Loss for the year
|
| | | | (11,197 ) | | | | | | (1,199 ) | | |
Adjustments required to reflect net cash used in operating activities (see appendix A)
|
| | | | 6,671 | | | | | | (1,943 ) | | |
Net cash used in operating activities
|
| | | | (4,526 ) | | | | | | (3,142 ) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Decrease (increase) in restricted deposits
|
| | | | 1,053 | | | | | | (1,075 ) | | |
Purchase of property and equipment
|
| | | | (51 ) | | | | | | (41 ) | | |
Net cash provided by (used in) investing activities
|
| | | | 1,002 | | | | | | (1,116 ) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds from issuance of preferred shares and warrants, net
|
| | | | 12,087 | | | | | | — | | |
Proceeds from convertible loan and warrants, net
|
| | | | — | | | | | | 7,216 | | |
Payment for maturity of Convertible loans
|
| | | | (980 ) | | | | | | | | |
Net cash generated from financing activities
|
| | | | 11,107 | | | | | | 7,216 | | |
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
| | | | 7,583 | | | | | | 2,958 | | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR
|
| | | | 4,163 | | | | | | 1,205 | | |
CASH AND CASH EQUIVALENTS AT END OF THE YEAR
|
| | | | 11,746 | | | | | | 4,163 | | |
|
| | |
Year ended December 31
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
U.S. dollars in thousands
|
| |||||||||
APPENDIX A: | | | | | | | | | | | | | |
Adjustments required to reflect net cash used in operating activities:
|
| | | | | | | | | | | | |
Depreciation
|
| | | | 43 | | | | | | 35 | | |
Income from change in fair value of financial liabilities at fair value
|
| | | | (251 ) | | | | | | (4,311 ) | | |
Issuance costs related to preferred shares, convertible loan and warrants
|
| | | | 1,091 | | | | | | 363 | | |
Financial expenses
|
| | | | 48 | | | | | | 105 | | |
Net changes in severance pay
|
| | | | 19 | | | | | | 22 | | |
Share-based compensation
|
| | | | 4,885 | | | | | | 1,490 | | |
| | | | | 5,835 | | | | | | (2,296 ) | | |
Changes in working capital:
|
| | | | | | | | | | | | |
(Increase) decrease in other current assets
|
| | | | (454 ) | | | | | | 500 | | |
Increase (decrease) in accounts payable:
|
| | | | | | | | | | | | |
Trade
|
| | | | 543 | | | | | | (298 ) | | |
Other
|
| | | | 820 | | | | | | 151 | | |
| | | | | 909 | | | | | | 353 | | |
Cash used for operating activities –
|
| | | | | | | | | | | | |
Interest paid
|
| | | | (73 ) | | | | | | — | | |
| | | | | 6,671 | | | | | | (1,943 ) | | |
|
| | | | | | |
Loans and
receivables |
| |||
| | | | | | |
U.S. dollars
in thousands |
| |||
| | | | As of December 31, 2017: | | | | | | | |
| | | |
Cash and cash equivalents
|
| | | | 11,746 | | |
| | | |
Receivables (excluding prepaid expenses)
|
| | | | 182 | | |
| | | | | | | | | 11,928 | | |
| | | | As of December 31, 2016: | | | | | | | |
| | | |
Cash and cash equivalents
|
| | | | 4,163 | | |
| | | |
Restricted deposits
|
| | | | 1,075 | | |
| | | |
Receivables (excluding prepaid expenses)
|
| | | | 157 | | |
| | | | | | | | | 5,395 | | |
|
| | | | | | |
Financial
liabilities at fair value through profit or loss (Level 3) |
| |
Financial
liabilities at amortized cost |
| |
Total
|
| |||||||||
| | | | | | |
U.S. dollars in thousands
|
| |||||||||||||||
| | | | As of December 31, 2017: | | | | | | | | | | | | | | | | | | | |
| | | |
Trade and other payable
|
| | | | — | | | | | | 2,020 | | | | | | 2,020 | | |
| | | |
Convertible loan
|
| | | | 3,893 | | | | | | — | | | | | | 3,893 | | |
| | | |
Preferred shares
|
| | | | 33,455 | | | | | | — | | | | | | 33,455 | | |
| | | |
Warrants to purchase preferred shares and shares
|
| | | | 5,398 | | | | | | — | | | | | | 5,398 | | |
| | | | | | | | | 42,746 | | | | | | 2,020 | | | | | | 44,766 | | |
| | | | As of December 31, 2016: | | | | | | | | | | | | | | | | | | | |
| | | |
Trade and other payable
|
| | | | — | | | | | | 657 | | | | | | 657 | | |
| | | |
Convertible loans
|
| | | | 13,715 | | | | | | 1,005 | | | | | | 14,720 | | |
| | | |
Preferred shares
|
| | | | 11,031 | | | | | | — | | | | | | 11,031 | | |
| | | |
Warrants to purchase preferred shares and shares
|
| | | | 4,800 | | | | | | — | | | | | | 4,800 | | |
| | | |
Liability to issue preferred shares and warrants
|
| | | | 273 | | | | | | — | | | | | | 273 | | |
| | | | | | | | | 29,819 | | | | | | 1,662 | | | | | | 31,481 | | |
|
| | | | | | |
December 31,
|
| |||||||||
| | | | | | |
2017
|
| |
2016
|
| ||||||
| | | | | | |
U.S. dollars in thousands
|
| |||||||||
| | | |
Cash in bank
|
| | | | 11,741 | | | | | | 4,159 | | |
| | | |
Short-term bank deposits
|
| | | | 5 | | | | | | 4 | | |
| | | | | | | | | 11,746 | | | | | | 4,163 | | |
|
| | | | | | |
December 31,
|
| |||
| | | | | | |
2017
|
| |
2016
|
|
| | | |
Preferred B price per share*
|
| |
$908.78
|
| |
—
|
|
| | | |
Value of equity**
|
| |
$78 million
|
| |
$71 million
|
|
| | | |
Volatility
|
| |
55%
|
| |
77%
|
|
| | | |
Probability of entering Phase 2b/3
|
| |
70%
|
| |
70%
|
|
| | | |
Probability for IPO
|
| |
85%
|
| |
50%
|
|
| | | | | | |
Convertible loans
|
| |||
| | | | | | |
U.S. dollars
in thousands |
| |||
| | | |
Balance as of January 1, 2016
|
| | | | 8,053 | | |
| | | |
Additions during 2016
|
| | | | 6,110 | | |
| | | |
Financial expenses
|
| | | | 105 | | |
| | | |
Changes in fair value
|
| | | | 452 | | |
| | | |
Balance as of December 31, 2016
|
| | | | 14,720 | | |
| | | |
Maturity during period
|
| | | | (1,053 ) | | |
| | | |
Conversion to Series B-1 preferred shares
|
| | | | (11,695 ) | | |
| | | |
Financial expenses
|
| | | | 48 | | |
| | | |
Changes in fair value
|
| | | | 1,873 | | |
| | | |
Balance as of December 31, 2017
|
| | | | 3,893 | | |
|
| | | | | | |
Warrants to
purchase preferred shares and shares |
| |||
| | | | | | |
U.S. dollars
in thousands |
| |||
| | | |
Balance as of January 1, 2016
|
| | | | 215 | | |
| | | |
Additions during 2016
|
| | | | 1,319 | | |
| | | |
Changes in fair value
|
| | | | 103 | | |
| | | |
Balance as of December 31, 2016
|
| | | | 1,637 | | |
| | | |
Conversion to warrants to purchase Series B preferred shares
|
| | | | (1,988 ) | | |
| | | |
Changes in fair value
|
| | | | 351 | | |
| | | |
Balance as of December 31, 2017
|
| | | | — | | |
|
| | |
Preferred
shares |
| |
Warrants to
purchase preferred shares and shares |
| |
Liability to
issue preferred shares and warrants |
| |
Total
|
| ||||||||||||
| | |
U.S. dollars in thousands
|
| |||||||||||||||||||||
Balance as of January 1, 2016
|
| | | | 13,062 | | | | | | 4,117 | | | | | | 2,154 | | | | | | 19,333 | | |
Changes in fair value
|
| | | | (2,031 ) | | | | | | (954 ) | | | | | | (1,881 ) | | | | | | (4,866 ) | | |
Balance as of December 31, 2016
|
| | | | 11,031 | | | | | | 3,163 | | | | | | 273 | | | | | | 14,467 | | |
Issuance of Series B preferred shares and warrants to purchase Series B preferred shares
|
| | | | 12,980 | | | | | | 198 | | | | | | — | | | | | | 13,178 | | |
Conversion of 2016 Convertible Loan and warrants to series B-1 preferred shares and warrant to purchase Series B preferred shares
|
| | | | 11,695 | | | | | | 1,988 | | | | | | — | | | | | | 13,683 | | |
Change of conditions of the liability to issue preferred shares and warrants to warrants
|
| | | | — | | | | | | 1,160 | | | | | | (1,160 ) | | | | | | — | | |
Changes in fair value
|
| | | | (2,251 ) | | | | | | (1,111 ) | | | | | | 887 | | | | | | (2,475 ) | | |
Balance as of December 31, 2017
|
| | | | 33,455 | | | | | | 5,398 | | | | | | — | | | | | | 38,853 | | |
|
| | | | | | |
December 31,
|
| |||
| | | | | | |
2017
|
| |
2016
|
|
| | | |
Preferred B price per share*
|
| |
$908.78
|
| |
—
|
|
| | | |
Value of equity**
|
| |
$78 million
|
| |
$71 million
|
|
| | | |
Volatility
|
| |
55%
|
| |
77%
|
|
| | | |
Probability of entering Phase 2b/3
|
| |
70%
|
| |
70%
|
|
| | | |
Probability for IPO
|
| |
85%
|
| |
50%
|
|
| | | | | | |
Number of ordinary shares
|
| |||||||||
| | | | | | |
December 31
|
| |||||||||
| | | | | | |
2017
|
| |
2016
|
| ||||||
| | | |
Authorized
|
| | | | 1,000,000 | | | | | | 1,000,000 | | |
| | | |
Issued
|
| | | | 34,544 | | | | | | 34,544 | | |
|
| | | | | | |
2017
|
| |
2016
|
| ||||||
| | | |
Ordinary share price
|
| | | $ | 773 | | | | | $ | 1,018 | | |
| | | |
Exercise price
|
| | | $ | 773 | | | | | $ | 479 | | |
| | | |
Dividend yield
|
| | | | — | | | | | | — | | |
| | | |
Expected volatility
|
| | | | 73.77 % | | | | | | 76 % | | |
| | | |
Risk-free interest rate
|
| | | | 1.67 % | | | | | | 1.05 % | | |
| | | |
Expected life – in years
|
| | | | 7.94 | | | | | | 4.11 | | |
|
| | |
Year ended December 31,
|
| |||||||||||||||||||||
| | |
2017
|
| |
2016
|
| ||||||||||||||||||
| | |
Number of
options |
| |
Weighted
average exercise price |
| |
Number of
options |
| |
Weighted
average exercise price |
| ||||||||||||
Outstanding at beginning of year
|
| | | | 8,743 | | | | | $ | 186.3 | | | | | | 7,092 | | | | | $ | 119.7 | | |
Forfeited
|
| | | | (279 ) | | | | | | 295.2 | | | | | | — | | | | | | — | | |
Granted
|
| | | | 14,959 | | | | | $ | 831.5 | | | | | | 1,651 | | | | | $ | 472.3 | | |
Outstanding at end of year
|
| | | | 23,423 | | | | | $ | 597.1 | | | | | | 8,743 | | | | | $ | 186.3 | | |
Exercisable at end of year
|
| | | | 11,006 | | | | | $ | 379.62 | | | | | | 6,426 | | | | | $ | 93.73 | | |
|
| | | |
December 31, 2017
|
| |
December 31, 2016
|
| |||||||||||||||||||||||||||
| | | |
Number of
options outstanding at end of year |
| |
Exercise
price |
| |
Weighted
average of remaining contractual life |
| |
Number of
options outstanding at end of year |
| |
Exercise
price |
| |
Weighted
average of remaining contractual life |
| |||||||||||||||
| | | |
4,879
|
| | | | * | | | | | | 2.48 | | | | | | 4,867 | | | | | | * | | | | | | 3.29 | | |
| | | |
254
|
| | | $ | 240.26 | | | | | | 1.7 | | | | | | 254 | | | | | $ | 240.26 | | | | | | 2.7 | | |
| | | |
277
|
| | | $ | 316 | | | | | | 2.42 | | | | | | 277 | | | | | $ | 316 | | | | | | 3.42 | | |
| | | |
250
|
| | | $ | 273.88 | | | | | | 2.05 | | | | | | 500 | | | | | $ | 273.88 | | | | | | 1.54 | | |
| | | |
85
|
| | | $ | 240 | | | | | | 3.21 | | | | | | 85 | | | | | $ | 240 | | | | | | 4.21 | | |
| | | |
2,731
|
| | | $ | 479.38 | | | | | | 4.2 | | | | | | 2,266 | | | | | $ | 479.38 | | | | | | 5.11 | | |
| | | |
13,814
|
| | | $ | 820 | | | | | | 7.77 | | | | | | 494 | | | | | $ | 479 | | | | | | 5.65 | | |
| | | |
1,133
|
| | | $ | 980 | | | | | | 5.26 | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
December 31,
|
| |||||||||
| | | | | | |
2017
|
| |
2016
|
| ||||||
| | | | | | |
U.S. dollars in thousands
|
| |||||||||
| | | |
a.
Other current assets:
|
| | | | | | | | | | | | |
| | | |
Prepaid expenses
|
| | | | 489 | | | | | | 38 | | |
| | | |
Restricted deposits
|
| | | | 23 | | | | | | — | | |
| | | |
Other
|
| | | | 159 | | | | | | 157 | | |
| | | | | | | | | 671 | | | | | | 195 | | |
|
| | | | | | |
Year ended December 31,
|
| |||||||||
| | | | | | |
2017
|
| |
2016
|
| ||||||
| | | | | | |
U.S. dollars in thousands
|
| |||||||||
| | | |
b.
Accounts payable – other:
|
| | | | | | | | | | | | |
| | | |
Employees and employees related
|
| | | | 215 | | | | | | 139 | | |
| | | |
Provision for vacation
|
| | | | 214 | | | | | | 155 | | |
| | | |
Accrued expenses and other
|
| | | | 995 | | | | | | 310 | | |
| | | | | | | | | 1,424 | | | | | | 604 | | |
|
| | | | | | |
Year ended December 31,
|
| |||||||||
| | | | | | |
2017
|
| |
2016
|
| ||||||
| | | | | | |
U.S. dollars (except for
share numbers) |
| |||||||||
| | | |
Loss attributable to equity holders of the Company
|
| | | | 11,197,000 | | | | | | 1,199,000 | | |
| | | |
Income from change in fair value of financial liabilities at fair value
|
| | | | — | | | | | | 4,125,000 | | |
| | | |
Loss used for the computation of diluted loss per share
|
| | | | 11,197,000 | | | | | | 5,324,000 | | |
| | | |
Weighted average number of Ordinary Shares used in the computation of basic loss per share
|
| | | | 34,544 | | | | | | 34,409 | | |
| | | | Add: | | | | | | | | | | | | | |
| | | |
Weighted average number of additional shares issuable upon the assumed conversion/exercise of 2012 convertible loan, preferred shares and warrants to issue preferred shares
|
| | | | — | | | | | | 17,563 | | |
| | | |
Weighted average number of Ordinary Shares used in the computation of diluted loss per share
|
| | | | 34,544 | | | | | | 51,972 | | |
| | | |
Basic loss per Ordinary Share
|
| | | | 324 | | | | | | 35 | | |
| | | |
Diluted loss per Ordinary Share
|
| | | | 324 | | | | | | 102 | | |
|
| | | | | | |
Year ended December 31,
|
| |||||||||
| | | | | | |
2017
|
| |
2016
|
| ||||||
| | | | | | |
U.S. dollars in thousands
|
| |||||||||
| | | |
5)
Key management compensation:
|
| | | | | | | | | | | | |
| | | |
Labor cost and related expenses
|
| | | | 1,048 | | | | | | 830 | | |
| | | |
Share-based compensation
|
| | | | 4,694 | | | | | | 1,351 | | |
| | | |
Directors fee and services
|
| | | | 577 | | | | | | 73 | | |
| | | |
Others
|
| | | | 109 | | | | | | 25 | | |
| | | | | | | | | 6,428 | | | | | | 2,279 | | |
|
| | | | | | |
December 31,
|
| |||||||||
| | | | | | |
2017
|
| |
2016
|
| ||||||
| | | | | | |
U.S. dollars in thousands
|
| |||||||||
| | | | Key management: | | | | | | | | | | | | | |
| | | |
Payables and accrued expenses
|
| | | | 93 | | | | | | 57 | | |
| | | |
Severance pay obligations
|
| | | | 70 | | | | | | 51 | | |
| | | |
Provision for vacation
|
| | | | 186 | | | | | | 138 | | |
| | | |
Directors fee and services
|
| | | | 76 | | | | | | 28 | | |
|
|
By:
/s/ Phillip Schwartz
Phillip Schwartz,
Attorney-in-Fact
|
| | | |
Exhibit 5.2
New York
Menlo Park Washington DC São Paulo London |
Paris
Madrid Tokyo Beijing Hong Kong |
||
Davis Polk & Wardwell LLP
450 Lexington Avenue
|
212 450 4000 tel 212 701 5800 fax
|
June 25, 2018
Entera Bio Ltd.
Hadassah Medical Center
Kiryat Hadassah
Jerusalem 9112002
Ladies and Gentlemen:
Entera Bio Ltd., a corporation organized under the laws of the State of Israel (the “ Company ”), has filed with the Securities and Exchange Commission a Registration Statement on Form F-1 (File No. 333-221472) (the “ Registration Statement ”) for the purpose of registering under the Securities Act of 1933, as amended (the “ Securities Act ”), the offer and sale of ordinary shares and 1,333,334 warrants, each entitling its holder to purchase 0.50 of the Company’s common shares, par value NIS 0.0000769 per share (the “ Warrants ”), to be sold pursuant to the Underwriting Agreement to be entered into in connection with the offering (the “ Underwriting Agreement ”) between the Company and Maxim Group LLC, as representatives of the several underwriters named therein (collectively, the “ Underwriters ”). The Warrants include 200,000 warrants that may be purchased by the Underwriter pursuant to the option to purchase additional warrants set forth in the Underwriting Agreement.
We, as your counsel, have examined originals or copies of such documents, corporate records, certificates of public officials and other instruments as we have deemed necessary or advisable for the purpose of rendering this opinion.
In rendering the opinion expressed herein, we have, without independent inquiry or investigation, assumed that (i) all documents submitted to us as originals are authentic and complete, (ii) all documents submitted to us as copies conform to authentic, complete originals, (iii) all signatures on all documents that we reviewed are genuine, (iv) all natural persons executing documents had and have the legal capacity to do so, (v) all statements in certificates of public officials and officers of the Company that we reviewed were and are accurate and (vi) all representations made by the Company as to matters of fact in the documents that we reviewed were and are accurate.
Based upon the foregoing, and subject to the additional assumptions and qualifications set forth below, we advise you that, assuming that the Warrants have been duly authorized, executed and delivered by the Company insofar as Israeli law is concerned, the Warrants, when the Warrants are executed and authenticated in accordance with their terms and delivered to and paid for by the Underwriter pursuant to the Underwriting Agreement, will be valid and binding obligations of the Company, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, concepts of reasonableness and equitable principles of general applicability, provided that we express no opinion as to the validity, legally binding effect or enforceability of any provision in the Warrants that requires or relates to adjustments to the exercise price at a price or in an amount that a court would determine in the circumstances under applicable law to be commercially unreasonable or a penalty or forfeiture.
In connection with the opinion expressed above, we have assumed that each party to the Warrants has been duly incorporated and is validly existing under the laws of the jurisdiction of its organization. In addition, we have assumed that the execution, delivery and performance by each party thereto of the Warrants (a) are within its corporate powers, (b) do not contravene, or constitute a default under, the certificate of incorporation or bylaws or other constitutive documents of such party, (c) require no action by or in respect of, or filing with, any governmental body, agency or official and (d) do not contravene, or constitute a default under, any provision of applicable law or regulation or any judgment, injunction, order or decree or any agreement or other instrument binding upon such party, provided that we make no such assumption to the extent that we have specifically opined as to such matters with respect to the Company.
We are members of the Bar of the State of New York and the foregoing opinion is limited to the laws of the State of New York.
We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and further consent to the reference to our name under the caption “Legal Matters” in the prospectus, which is a part of the Registration Statement. In giving this consent, we do not admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act.
Very truly yours,
/s/ Davis Polk & Wardwell LLP
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the use in this Amendment No. 6 to the Registration Statement on Form F-1 of Entera Bio Ltd. of our report dated March 30, 2018 relating to the financial statements of Entera Bio Ltd., which appears in this Registration Statement. We also consent to the reference to us under the heading “Experts" in such Registration Statement.
Tel-Aviv, Israel | /S/ Kesselman & Kesselman |
June 25, 2018 | Certified Public Accountants (lsr.) |
A member firm of PricewaterhouseCoopers International Limited |