Merger with Notable expected to close in late September or October, subject to VBL’s S-4 registration statement being declared effective and shareholder approval
MODI’IN,
“We continue to make good progress towards the closing of our previously announced merger with Notable,” said Prof. Dror Harats, M.D., Chief Executive Officer of VBL. “We believe the proposed merger represents the best path forward for the shareholders of both companies and for patients. The combined organization is expected to be listed on Nasdaq, and will apply Notable’s Predictive Precision Medicines Platform to develop a pipeline of clinical-stage precision medicines with the goal of transforming the standard of care in oncology. Our S-4 registration statement is currently under review by the
Recent Corporate Highlights
- VBL continues to make progress towards the closing of the proposed merger with
Notable Labs, Inc. (“Notable”) announced onFebruary 23, 2023 . The combined company will focus on the advancement of Notable’s proprietary Predictive Precision Medicines Platform and therapeutic pipeline focused on cancer patients with high unmet medical needs. - A Registration Statement on Form S-4 in connection with the proposed merger with Notable was initially filed by VBL with the
U.S. Securities and Exchange Commission (“SEC”) onMay 11, 2023 but has not yet been declared effective. - On
June 30, 2023 , VBL entered into a non-binding term sheet withWellbeing Group Ltd. (“Wellbeing”), as amended onJuly 25, 2023 , to monetize VB-601, a targeted antibody for immune-inflammatory applications, for total consideration of up to$5 million plus royalties. The offer consists of a$250,000 upfront cash payment to be paid upon closing, up to$4.75 million in clinical and commercial milestones, and a low to mid single digit percentage tiered royalty on annual net sales above$50 million . Wellbeing intends to form a new company to develop VB-601. Although not required by Israeli law, shareholders will be asked to provide a non-binding advisory vote at the VBL special meeting.
Financial Results for the Second Quarter of 2023
- On
June 30, 2023 , VBL had cash and cash equivalents of$24.3 million . - For the quarter ended
June 30, 2023 , VBL reported a net loss of$0.9 million , or ($0.01 ) per basic share, compared to a net loss of$9.4 million , or ($0.12 ) per basic share, in the comparable period in 2022. - For the quarter ended
June 30, 2023 , total operating expenses were approximately$0.9 million , consisting of($1.5) million in research and development expenses, net, (due to the receipt of$1.5 million in funding from theEuropean Innovation Commission grant and reversal of share based compensation from terminated employees),$1.9 million in general and administrative expenses, an impairment loss of$0.3 million from the write down of VBL’s remaining fixed assets in contemplation of the proposed merger with Notable and a$0.2 million capital loss associated with the sale of fixed assets. This compares with total operating expenses of$9.6 million in the quarter endedJune 30, 2022 , which was comprised of$6.7 million in research and development expenses, net, and$2.9 million in general and administrative expenses.
About
Additional Information about the Proposed Merger and Where to Find It
This communication may be deemed to be solicitation material in respect of the proposed merger transaction between VBL and Notable. In connection with the proposed merger transaction, VBL has filed relevant materials with the
No Offer or Solicitation
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor a solicitation of any vote or approval with respect to the proposed transaction or otherwise. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, express or implied statements regarding the structure, timing and completion of the proposed merger; the proposed sale of VB-601 to Wellbeing; future operations and goals of the combined company; the potential benefits of any product candidates or platform technologies of the combined company; and other statements that are not historical fact. All statements other than statements of historical fact contained in this press release are forward-looking statements. These forward-looking statements are made as of the date they were first issued, and were based on the then-current expectations, estimates, forecasts, and projections, as well as the beliefs and assumptions of management. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond VBL’s control. VBL’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to (i) the risk that the conditions to the closing of the proposed merger are not satisfied, including the failure to timely obtain shareholder approval for the transaction, if at all; (ii) uncertainties as to the timing of the consummation of the proposed merger and the ability of each of VBL and Notable to consummate the proposed merger; (iii) risks related to VBL’s ability to manage its operating expenses and its expenses associated with the proposed merger pending closing; (iv) risks related to the failure or delay in obtaining required approvals from any governmental or quasi-governmental entity necessary to consummate the proposed merger; (v) the risk that as a result of adjustments to the exchange ratio, VBL shareholders and Notable stockholders could own more or less of the combined company than is currently anticipated; (vi) risks related to the market price of VBL’s ordinary shares relative to the exchange ratio; (vii) unexpected costs, charges or expenses resulting from the transaction; (viii) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed merger; (ix) the uncertainties associated with Notable’s platform technologies, as well as risks associated with the clinical development and regulatory approval of product candidates, including potential delays in the commencement, enrollment and completion of clinical trials; (x) risks related to the inability of the combined company to obtain sufficient additional capital to continue to advance these product candidates and its preclinical programs; (xi) uncertainties in obtaining successful clinical results for product candidates and unexpected costs that may result therefrom; (xii) risks related to the failure to realize any value from product candidates and preclinical programs being developed and anticipated to be developed in light of inherent risks and difficulties involved in successfully bringing product candidates to market; (xiii) risks associated with the possible failure to realize certain anticipated benefits of the proposed merger, including with respect to future financial and operating results; (xiv) risks associated with the possible failure to receive a favorable advisory vote from VBL’s shareholders on the sale of VB-601 to Wellbeing, including closing such sale; and (xv) risks associated with VBL’s loss of “foreign private issuer” status, among others. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties. These and other risks and uncertainties are more fully described in periodic filings with the
CONTACT:
+1 (617) 430-7576
daniel@lifesciadvisors.com
Source:
2023 GlobeNewswire, Inc., source