Pluristem issues shares to CHA at a price per share of $4.16
Development and Commercialization of PLX-PAD cells for the Treatment of Peripheral Artery Disease in South Korea
HAIFA, Israel, Dec. 17, 2013 (GLOBE NEWSWIRE) -- Pluristem Therapeutics Inc. (PSTI) (TASE:PLTR) today announced that pursuant to the previously announced exclusive out-license and strategic partnership agreement between Pluristem Ltd. and South Korea-based CHA Bio&Diostech (Kosdaq:CHA), the details of which were announced on June 26, 2013, Pluristem and CHA entered into investment agreements pursuant to which Pluristem has issued to CHA 2,500,000 shares of its common stock in consideration for the issuance to Pluristem of 1,011,504 shares of CHA. This reflects a total consideration of $10.4 million, at a price of $4.16 per Pluristem common share, a premium of 26% over the closing price on December 16, 2013. The shares are subject to a lock up period of one year.
The previously announced agreement with CHA encompasses the use of Pluristem's PLX-PAD cells in the treatment of two subsets of Peripheral Artery Disease (PAD) in South Korea: Intermittent Claudication (IC) and Critical Limb Ischemia (CLI).
Zami Aberman, Pluristem's Chairman and CEO stated, "We are excited to finalize and move forward with this strategic agreement with CHA Bio. We believe that initiating clinical trials with CHA Bio for indications in the area of peripheral vascular disease opens significant opportunities for Pluristem in South Korea's dynamic regenerative medicine industry. We also look forward to potentially expanding the use of our PLX cells for other indications with our partner, CHA Bio."
The first clinical study to be performed as part of the agreement will be a Phase II trial in IC which will run in parallel to the Phase II trial being conducted in the USA, Germany and Israel. As previously announced, this study was approved in November 2013 by South Korea's Ministry of Food and Drug Safety (MFDS). Pursuant to the previously announced agreement with CHA, upon the first regulatory approval for a PLX product in South Korea, Pluristem and CHA Bio will establish a joint venture (JV) co-owned by the parties. The purpose of the JV will be to commercialize PLX cell products in South Korea. Additionally, Pluristem will be able to use the data generated by CHA Bio to pursue the development of PLX product candidates outside of South Korea.