U.S. Markets closed
  • S&P 500

    3,790.93
    +112.50 (+3.06%)
     
  • Dow 30

    30,316.32
    +825.43 (+2.80%)
     
  • Nasdaq

    11,176.41
    +360.97 (+3.34%)
     
  • Russell 2000

    1,775.77
    +66.90 (+3.91%)
     
  • Crude Oil

    86.14
    +2.51 (+3.00%)
     
  • Gold

    1,733.60
    +31.60 (+1.86%)
     
  • Silver

    21.09
    +0.51 (+2.46%)
     
  • EUR/USD

    0.9994
    +0.0167 (+1.6990%)
     
  • 10-Yr Bond

    3.6170
    -0.0340 (-0.93%)
     
  • Vix

    29.07
    -1.03 (-3.42%)
     
  • GBP/USD

    1.1478
    +0.0159 (+1.4003%)
     
  • USD/JPY

    144.0290
    -0.5910 (-0.4086%)
     
  • BTC-USD

    20,227.51
    +695.38 (+3.56%)
     
  • CMC Crypto 200

    458.68
    +13.24 (+2.97%)
     
  • FTSE 100

    7,086.46
    +177.70 (+2.57%)
     
  • Nikkei 225

    26,992.21
    +776.42 (+2.96%)
     

VBL Therapeutics Announces Second Quarter 2022 Financial Results and Corporate Process to Explore Strategic Options

·8 min read
VBL Therapeutics
VBL Therapeutics

Exploring strategic options to maximize shareholder value; engaged Chardan as financial advisor

TEL AVIV, Israel and NEW YORK, Aug. 15, 2022 (GLOBE NEWSWIRE) -- VBL Therapeutics (Nasdaq: VBLT), a biotechnology company developing targeted medicines for immune-inflammatory diseases, today announced financial results for the second quarter ended June 30, 2022 and provided a corporate update.

“Following our announcement in July that the Phase 3 OVAL trial evaluating ofra-vec did not meet its primary endpoints, we began an internal strategic review of our development programs with the goal of maximizing shareholder value,” said Dror Harats, M.D., Chief Executive Officer of VBL. “We have taken steps to preserve capital, including the workforce reduction announced earlier in August and ceasing development of ofra-vec in all indications. We see opportunities to create value from our assets including from our Monocyte Targeting Technology (MTT), which offers a novel and differentiated approach to targeting inflammation and our gene therapy manufacturing facility. Our VB-601 program, the first candidate from the MTT program, remains on track and we plan to enter the clinic with this program in the fourth quarter of 2022.”

In August 2022, VBL retained Chardan to act as its financial advisor to explore and evaluate strategic options for maximizing shareholder value. Strategic alternatives that may be explored or evaluated as part of this process include the potential for an acquisition, merger, business combination or other strategic transaction or transactions involving VBL. VBL’s board of directors has not set a timetable for the conclusion of this review, nor has it made any decisions related to any further actions or potential strategic options at this time. There can be no assurance, however, that this process will result in any such transaction.

Financial Results for the Second Quarter of 2022

  • At June 30, 2022, VBL had cash, cash equivalents, short-term bank deposits and restricted bank deposits of $34.5 million. VBL expects that its cash, cash equivalents, short-term bank deposits, and restricted bank deposits will be sufficient to fund currently planned operating expenses and capital expenditures for at least the next 12 months. VBL’s review of its strategic options and any transaction resulting from such review may impact this projection.

  • For the quarter ended June 30, 2022, VBL reported a net loss of $9.4 million, or ($0.12) per basic share, compared to a net loss of $8.0 million, or ($0.12) per basic share, in the comparable period in 2021.

  • For the quarter ended June 30, 2022, total operating expenses were approximately $9.6 million, consisting of $6.7 million in research and development expenses, net, and $2.9 million in general and administrative expenses. This compares with total operating expenses of $8.0 million in the second quarter ended June 30, 2021, which was comprised of $6.6 million in research and development expenses, net, and $1.5 million in general and administrative expenses.

  • Subsequent to the end of the second quarter, VBL announced that the OVAL phase 3 study did not meet either primary endpoint. VBL evaluated these subsequent events and determined that no adjustments to the June 30, 2022 financial statements were required as they were not known or expected as of that date. As the results are considered a triggering event, VBL will perform an impairment test on all of its long-lived assets in the third quarter of 2022 that may result in an impairment charge on such assets and potential new liabilities arising from the triggering event.

About VBL Therapeutics

VBL Therapeutics (Nasdaq: VBLT) is developing targeted therapies for immune-inflammatory diseases. VBL’s lead immunology product candidate VB-601 is a targeted antibody for immune-inflammatory applications expected to enter Phase 1 this year that has shown disease-modifying activity across multiple preclinical models including multiple sclerosis, rheumatoid arthritis and inflammatory bowel disease. At present, VBL is evaluating options for development of its assets and to maximize shareholder value, which may include partnering and other strategic options. To learn more about VBL, please visit vblrx.com or follow VBL on LinkedIn, Twitter, YouTube or Facebook.

Forward Looking Statements

This press release contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements, which are often indicated by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “goal,” “intend,” “look forward to,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions. These forward-looking statements may include, but are not limited to, statements regarding VBL’s evaluation of strategic alternatives and transactions to maximize shareholder value, VBL’s ability to preserve capital and sufficiency of cash on hand, as well as timing of the initiation of a first-in-human trial for VB-601, and the impairment testing to be conducted in the third quarter, among others. These forward-looking statements are not promises or guarantees and involve substantial risks and uncertainties. Among the factors that could cause actual results to differ materially from those described or projected herein include uncertainties associated generally with the development of pharmaceutical product candidates, and include risks associated with research and development, clinical trials and related regulatory reviews and approvals, the risk that historical clinical trial results may not be predictive of future trial results, that VBL’s financial resources do not last for as long as anticipated, that VBL may not realize the expected benefits of its intellectual property protection, that VBL may not identify any strategic alternatives or if so identified, be able to consummate any such transaction on terms acceptable to VBL and its shareholders, and adequacy of any impairments, among others. A further list and description of these risks, uncertainties and other risks can be found in VBL’s regulatory filings with the U.S. Securities and Exchange Commission (SEC), including in its annual report on Form 20-F for the year ended December 31, 2021, and subsequent filings with the SEC. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. VBL undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise.

CONTACT:

Daniel Ferry
LifeSci Advisors
+1(617) 430-7576
daniel@lifesciadvisors.com

VASCULAR BIOGENICS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

June 30, 2022

 

 

December 31, 2021

 

 

 

U.S. dollars in thousands

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

15,060

 

 

$

21,986

 

Short-term bank deposits

 

 

19,087

 

 

 

31,164

 

Other current assets

 

 

1,541

 

 

 

1,697

 

Total current assets

 

 

35,688

 

 

 

54,847

 

 

 

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

 

 

 

Restricted bank deposits

 

 

360

 

 

 

362

 

Long-term prepaid expenses

 

 

147

 

 

 

182

 

Funds in respect of employee rights upon retirement

 

 

369

 

 

 

415

 

Property, plant and equipment, net

 

 

6,978

 

 

 

6,847

 

Operating lease right-of-use assets

 

 

1,777

 

 

 

2,008

 

Total non-current assets

 

 

9,631

 

 

 

9,814

 

Total assets

 

$

45,319

 

 

$

64,661

 

 

 

 

 

 

 

 

 

 

LIABILITIES, ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accruals:

 

 

 

 

 

 

 

 

Trade

 

$

3,336

 

 

$

4,331

 

Other

 

 

4,525

 

 

 

4,408

 

Deferred revenue

 

 

482

 

 

 

658

 

Current maturity of operating leases liability

 

 

466

 

 

 

529

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

$

8,809

 

 

$

9,926

 

 

 

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

 

 

 

Liability for employee rights upon retirement

 

 

527

 

 

 

546

 

 

 

 

 

 

 

 

 

 

Operating lease liability

 

 

1,389

 

 

 

1,823

 

Other non-current liability

 

 

220

 

 

 

188

 

Total non-current liabilities

 

 

2,136

 

 

 

2,557

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

10,945

 

 

$

12,483

 

 

 

 

 

 

 

 

 

 

Ordinary shares subject to possible redemption, as of June 30, 2022 and December 31, 2021, zero and 615,366 shares, respectively, at redemption value (see note 4)

 

 

-

 

 

 

1,598

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

Ordinary shares, NIS 0.01 par value; Authorized as of June 30, 2022 and December 31, 2021, 150,000,000 shares; issued and outstanding as of June 30, 2022 and December 31, 2021 69,348,939 and 68,711,584 shares, respectively (excluding -zero- and 615,366 shares subject to possible redemption, as of June 30, 2022 and December 31, 2021, respectively)

 

 

173

 

 

 

171

 

Additional paid in capital

 

 

316,136

 

 

 

309,355

 

Warrants

 

 

-

 

 

 

3,127

 

Accumulated deficit

 

 

(281,935)

 

 

 

(262,073)

 

Total equity

 

 

34,374

 

 

 

50,580

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

45,319

 

 

$

64,661

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

 

VASCULAR BIOGENICS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS AND COMPREHENSIVE LOSS
(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

U.S. dollars in thousands

Revenues

 

$

64

 

 

$

188

 

 

$

177

 

 

$

373

 

Cost of revenues

 

 

(34)

 

 

 

(89)

 

 

 

(89)

 

 

 

(179)

 

Gross profit

 

 

30

 

 

 

99

 

 

 

88

 

 

 

194

 

Research and development expenses, net

 

$

6,721

 

 

$

6,642

 

 

$

14,181

 

 

$

11,411

 

General and administrative expenses

 

 

2,923

 

 

 

1,481

 

 

 

6,085

 

 

 

3,154

 

Operating loss

 

 

9,614

 

 

 

8,024

 

 

 

20,178

 

 

 

14,371

 

Financial income

 

 

(205)

 

 

 

(3)

 

 

 

(351)

 

 

 

(87)

 

Financial expenses

 

 

25

 

 

 

7

 

 

 

35

 

 

 

27

 

Financial income, net

 

 

(180)

 

 

 

4

 

 

 

(316)

 

 

 

(60)

 

Net loss and comprehensive loss

 

$

9,434

 

 

$

8,028

 

 

$

19,862

 

 

$

14,311

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. dollars

 

Loss per share (see note 3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.12

 

 

$

0.12

 

 

$

0.26

 

 

$

0.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of shares

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

77,398,939

 

 

 

68,092,953

 

 

 

77,392,922

 

 

 

60,075,863

 

The accompanying notes are an integral part of the condensed consolidated financial statements.