|
State of Israel
|
| |
2834
|
| |
Not Applicable
|
|
|
(State or Other Jurisdiction of
Incorporation or Organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer Identification No.)
|
|
|
Joshua G. Kiernan
Nathan Ajiashvili Latham & Watkins LLP 885 Third Avenue New York, NY 10022 Tel: +1 212 906 1200 Fax: +1 212 751 4864 |
| |
Gene Kleinhendler
Perry Wildes Gross, Kleinhendler, Hodak, Halevy, Greenberg & Co. One Azrieli Center Tel Aviv 670201, Israel Tel: +972 3 607 4444 Fax: +972 3 607 4470 |
| |
Eric W. Blanchard
Brian K. Rosenzweig Matthew T. Gehl Covington & Burling LLP The New York Times Building 620 Eighth Avenue New York, NY 10018-1405 Telephone: +1 212 841 1000 Facsimile: +1 212 841 1010 |
| |
Chaim Friedland
Ari Fried Gornitzky & Co. Zion House 45 Rothschild Blvd. Tel Aviv 6578403, Israel Telephone: +972 3 710 9191 Facsimile: +972 3 560 6555 |
|
| | ||||||||||||
Title of each Class of Securities to be Registered
|
| |
Proposed Maximum
Aggregate Offering Price (1)(2) |
| |
Amount of
Registration Fee (3) |
| ||||||
Ordinary shares, par value NIS 0.1 per share
|
| | | $ | | | | | $ | | | ||
|
| | |
Per
share |
| |
Total
|
| ||||||
Initial public offering price
|
| | | $ | | | | | $ | | | ||
Underwriting discounts and commission (1)
|
| | | $ | | | | | | $ | | | |
Proceeds to us (before expenses)
|
| | | $ | | | | | | $ | | | |
| Jefferies | | | | | |
BMO Capital Markets
|
|
| | | | | 1 | | | |
| | | | | 11 | | | |
| | | | | 55 | | | |
| | | | | 56 | | | |
| | | | | 57 | | | |
| | | | | 58 | | | |
| | | | | 59 | | | |
| | | | | 60 | | | |
| | | | | 61 | | | |
| | | | | 63 | | | |
| | | | | 64 | | | |
| | | | | 77 | | | |
| | | | | 113 | | | |
| | | | | 135 | | | |
| | | | | 137 | | | |
| | | | | 139 | | | |
| | | | | 147 | | | |
| | | | | 150 | | | |
| | | | | 162 | | | |
| | | | | 171 | | | |
| | | | | 172 | | | |
| | | | | 172 | | | |
| | | | | 172 | | | |
| | | | | 174 | | | |
| | | | | F-1 | | |
| | |
Year Ended December 31
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
| | |
(in thousands, except share and
per share data ) |
| |||||||||
Statement of Operations Data: | | | | | | | | | | | | | |
Research and development expenses
|
| | | $ | 7,184 | | | | | $ | 17,023 | | |
General and administrative expenses
|
| | | | 2,463 | | | | | | 3,733 | | |
Total operating loss
|
| | | | 9,647 | | | | | | 20,756 | | |
Financial expenses, net
|
| | | | 13 | | | | | | 15 | | |
Loss for the year
|
| | | $ | 9,660 | | | | | $ | 20,771 | | |
Basic and diluted loss per ordinary share (1)
|
| | | $ | 2.76 | | | | | $ | 5.94 | | |
Weighted average number of ordinary shares outstanding – basic and diluted
|
| | | | 3,494,579 | | | | | | 3,494,579 | | |
|
| | |
As of December 31, 2016
|
| |||||||||
| | |
Actual
|
| |
As
Adjusted (1) |
| ||||||
| | |
(in thousands)
|
| |||||||||
Balance Sheet Data: | | | | ||||||||||
Cash and cash equivalents
|
| | | $ | 7,001 | | | | | $ | | | |
Total assets
|
| | | | 10,985 | | | | | | | | |
Total liabilities
|
| | | | 42,322 | | | | | | | | |
Accumulated deficit
|
| | | | (63,693) | | | | | | | | |
Total capital deficiency
|
| | | | (31,337) | | | | | | | | |
| | |
As of December 31, 2016
|
| |||||||||
| | |
Actual
|
| |
As Adjusted
|
| ||||||
| | |
(in thousands,
except share and per share data) |
| |||||||||
Cash and cash equivalents
|
| | | $ | 7,001 | | | | | $ | | | |
Loans from the controlling shareholder
|
| | | $ | 37,338 | | | | | $ | | | |
Shareholders’ equity (capital deficiency): | | | | ||||||||||
Ordinary shares of NIS 0.1 par value per share; 8,775,783 shares authorized and 3,494,579 shares issued and outstanding, actual; shares authorized and issued and outstanding, as adjusted
|
| | | | 82 | | | | |||||
Additional paid-in capital
|
| | | | 32,274 | | | | |||||
Accumulated deficit
|
| | | | (63,693) | | | | | | | | |
Total capital deficiency
|
| | | | (31,337) | | | | | | | | |
Total capitalization
|
| | | $ | 6,001 | | | | | $ | | | |
|
|
Assumed initial public offering price per ordinary share
|
| | | | | | | | | $ | | | |
|
Net tangible book value (deficit) per ordinary share as of June 30, 2017
|
| | | $ | ( ) | | | | | | | | |
|
Increase in net tangible book value per ordinary share attributable to the offering
|
| | | $ | | | | | | | | | |
|
As adjusted net tangible book value per share after this offering
|
| | | | | | | | | $ | | | |
|
Dilution per ordinary share to new investors
|
| | | | | | | | | $ | | | |
|
Percentage of dilution per ordinary share to new investors
|
| | | | | | | | | | % | | |
|
| | |
Shares purchased
|
| |
Total consideration
|
| |
Average
price per share |
| ||||||||||||||||||||||||
| | |
Number
|
| |
%
|
| |
Amount
|
| |
%
|
| | | |||||||||||||||||||
Existing shareholder
|
| | | | | | | | | | | | | | | $ | | | | | | | | | | | | $ | | | | | ||
New investors
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Total
|
| | | | | | | | | 100 | | | | | $ | | | | | | 100 | | | | | $ | | | | |||||
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
| | |
(in thousands,
except share and per share data) |
| |||||||||
Statement of Operations Data: | | | | ||||||||||
Research and development expenses
|
| | | $ | 7,184 | | | | | $ | 17,023 | | |
General and administrative expenses
|
| | | | 2,463 | | | | | | 3,733 | | |
Total operating loss
|
| | | | 9,647 | | | | | | 20,756 | | |
Financial expenses, net
|
| | | | 13 | | | | | | 15 | | |
Loss for the year
|
| | | $ | 9,660 | | | | | $ | 20,771 | | |
Basic and diluted loss per ordinary share (1)
|
| | | $ | 2.76 | | | | | $ | 5,94 | | |
Weighted average number of ordinary shares outstanding – basic and
diluted |
| | | | 3,494,579 | | | | | | 3,494,579 | | |
|
| | |
As of December 31,
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Balance Sheet Data: | | | | ||||||||||
Cash and cash equivalents
|
| | | $ | 5,895 | | | | | $ | 7,001 | | |
Total assets
|
| | | | 8,244 | | | | | | 10,985 | | |
Total liabilities
|
| | | | 19,762 | | | | | | 42,322 | | |
Accumulated deficit
|
| | | | (42,922) | | | | | | (63,693) | | |
Total capital deficiency
|
| | | | (11,518) | | | | | | (31,337) | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Research and development expenses
|
| | | $ | 7,184 | | | | | $ | 17,023 | | |
General and administrative expenses
|
| | | | 2,463 | | | | | | 3,733 | | |
Total operating loss
|
| | | | 9,647 | | | | | | 20,756 | | |
Financial expenses, net
|
| | | | 13 | | | | | | 15 | | |
Loss for the year
|
| | | $ | 9,660 | | | | | $ | 20,771 | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Payroll and related expenses
|
| | | $ | 2,647 | | | | | $ | 3,629 | | |
Clinical trial expenses
|
| | | | 517 | | | | | | 9,686 | | |
Professional consulting and subcontracted work
|
| | | | 2,001 | | | | | | 1,830 | | |
In-process research and development acquired
|
| | | | 431 | | | | | | — | | |
Other
|
| | | | 1,588 | | | | | | 1,878 | | |
Total research and development expenses
|
| | | $ | 7,184 | | | | | $ | 17,023 | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Net cash used in operating activities
|
| | | $ | (8,044) | | | | | $ | (18,495) | | |
Net cash used in investing activities
|
| | | | (210) | | | | | | (391) | | |
Net cash from financing activities
|
| | | | 13,572 | | | | | | 20,000 | | |
Increase in cash and cash equivalents
|
| | | $ | 5,301 | | | | | $ | 1,106 | | |
|
| | |
Total
|
| |
Less than
1 year |
| |
1 – 3 years
|
| |
3 – 5 years
|
| |
More than
5 years |
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Operating lease obligations (1)
|
| | | $ | 1,705 | | | | | $ | 419 | | | | | $ | 1,286 | | | | | $ | — | | | | | $ | — | | |
Total
|
| | | $ | 1,705 | | | | | $ | 419 | | | | | $ | 1,286 | | | | | $ | — | | | | | $ | — | | |
|
| | |
2015
|
| |
2016
|
|
Value of one ordinary share
|
| |
$11.35
|
| |
$21.59
|
|
Dividend yield
|
| |
0%
|
| |
0%
|
|
Expected volatility
|
| |
62.46% – 66.22%
|
| |
68.45% – 79.1%
|
|
Risk-free interest rate
|
| |
1.61% – 1.81%
|
| |
0.95% – 1.34%
|
|
Expected term
|
| |
5.5 – 7.5 years
|
| |
5 – 6.71 years
|
|
|
Date of grant
|
| |
Number of
shares subject to awards granted |
| |
Class of
shares subject to the awards granted |
| |
Type of
equity instrument awarded |
| |
Exercise
price per share |
| |
Estimated
fair value per ordinary share at grant date |
| |||||||||||||||
March 29, 2015
|
| | | | 151,299 | | | | | | ordinary | | | | | | options | | | | | $ | 2.86 | | | | | $ | 11.35 | | |
April 12, 2015
|
| | | | 22,141 | | | | | | ordinary | | | | | | options | | | | | $ | 2.86 | | | | | $ | 11.35 | | |
August 2, 2016
|
| | | | 50,422 | | | | | | ordinary | | | | | | options | | | | | $ | 2.86 | | | | | $ | 21.59 | | |
February 12, 2017
|
| | | | 29,906 | | | | | | ordinary | | | | | | options | | | | | $ | 2.86 | | | | | | * | | |
July 13, 2017
|
| | | | 15,040 | | | | | | ordinary | | | | | | options | | | | | $ | 2.86 | | | | | | * | | |
July 13, 2017
|
| | | | 209,470 | | | | | | ordinary | | | | | | options | | | | | $ | 10.02 | | | | | | * | | |
VERED Phase II Efficacy Results at Week 12 (ITT)
|
| |
Vehicle
(N=30) |
| |
VERED 1%
(N=32) |
| |
VERED 5%
(N=30) |
|
Dichotomized IGA – Primary Success | | | | | ||||||
Success
|
| |
6 (20.0%)
|
| |
12 (37.5%)
|
| |
16 (53.3%)
|
|
Failure
|
| |
24 (80.0%)
|
| |
20 (62.5%)
|
| |
14 (46.7%)
|
|
p-value relative to vehicle
|
| | | | |
0.0836
|
| |
0.0013
|
|
Inflammatory Lesion Count – Change from Baseline | | | | | ||||||
Mean
|
| |
-7.4
|
| |
-21.6
|
| |
-14.1
|
|
Median
|
| |
-10.0
|
| |
-12.5
|
| |
-15.0
|
|
p-value relative to vehicle
|
| | | | |
0.0276
|
| |
0.0037
|
|
LOCF (last observation carried forward) used to impute mission observations
|
| | | | |
0.0836
|
| |
0.0013
|
|
Area of Activity
|
| |
As of
June 30, 2017 |
| |||
Administrative
|
| | | | 6 | | |
Research, development and quality assurance
|
| | | | 44 | | |
Total
|
| | | | 50 | | |
|
Name
|
| |
Age
|
| |
Position
|
|
Moshe Arkin | | |
64
|
| | Chairman of the Board of Directors | |
Alon Seri-Levy (1) | | |
56
|
| | Chief Executive Officer and Director Nominee | |
Gilad Mamlok | | |
49
|
| | Chief Financial Officer | |
Haim Barsimantov | | |
42
|
| | Chief Technology Officer | |
Ofer Toledano | | |
52
|
| | Vice President Research and Development | |
Ofra Levy-Hacham | | |
51
|
| | Vice President Quality and Regulatory Affairs | |
Karine Neimann | | |
46
|
| | Vice President Projects and Planning, Chief Chemist | |
Itzik Yosef | | |
41
|
| | Vice President Operations | |
Dov Zamir | | |
64
|
| | Vice President Special Projects | |
Itai Arkin (1) | | |
29
|
| | Director Nominee | |
Shmuel Ben Zvi (1) | | |
57
|
| | Director Nominee | |
Hani Lerman (1) | | |
44
|
| | Director Nominee | |
Yael Baratz (1) | | |
60
|
| | Director Nominee | |
Ran Gottfried (1)(2) | | |
72
|
| | External Director Nominee | |
Jerrold S. Gattegno (1)(2) | | |
64
|
| | External Director Nominee | |
| | |
Shares Beneficially
Owned Prior to the Offering |
| |
Shares Beneficially
Owned After the Offering |
| ||||||||||||||||||
Name of Beneficial Owner
|
| |
Number
|
| |
Percentage
|
| |
Number
|
| |
Percentage
|
| ||||||||||||
5% or greater shareholders | | | | | | | | | | | | | | | | | | | | | | | | | |
M.Arkin Dermatology Ltd. (1)
|
| | | | 3,494,579 | | | | | | 100% | | | | | | 3,494,579 | | | | | | % | | |
Directors, director nominees and executive officers
|
| | | | | ||||||||||||||||||||
Moshe Arkin (1)
|
| | | | 3,494,579 | | | | | | 100% | | | | | | 3,494,579 | | | | | | | | |
Alon Seri-Levy (2)
|
| | | | 50,749 | | | | | | 1.5% | | | | | | 50,749 | | | | | | | | |
Gilad Mamlok
|
| | | | * | | | | | | * | | | | | | * | | | | | | * | | |
Haim Barsimantov
|
| | | | * | | | | | | * | | | | | | * | | | | | | * | | |
Ofer Toledano
|
| | | | * | | | | | | * | | | | | | * | | | | | | * | | |
Ofra Levy-Hacham
|
| | | | * | | | | | | * | | | | | | * | | | | | | * | | |
Karine Neimann
|
| | | | * | | | | | | * | | | | | | * | | | | | | * | | |
Itzik Yosef
|
| | | | * | | | | | | * | | | | | | * | | | | | | * | | |
Dov Zamir
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Itai Arkin
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Ran Gottfried
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Jerrold S. Gattegno
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Shmuel Ben Zvi
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Hani Lerman
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Yael Baratz
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All directors, director nominees and executive officers as a group (15 persons) (3)
|
| | |
|
3,621,834
|
| | | |
|
100%
|
| | | |
|
3,621,834
|
| | | |
|
%
|
| |
|
Tax Year
|
| |
Development Region “A”
|
| |
Other Areas within Israel
|
| ||||||
2011 – 2012
|
| | | | 10% | | | | | | 15% | | |
2013
|
| | | | 7% | | | | | | 12.5% | | |
2014 – 2016 | | | | | 9% | | | | | | 16% | | |
2017 and thereafter
|
| | | | 7.5% | | | | | | 16% | | |
Underwriter
|
| |
Number of
Ordinary Shares |
| |||
Jefferies LLC
|
| | | | | | |
BMO Capital Markets Corp.
|
| | | | | | |
Raymond James & Associates, Inc.
|
| | | | | | |
Total
|
| | | | | | |
|
| | |
Per Ordinary Share
|
| |
Total
|
| ||||||||||||||||||
| | |
Without
Option to Purchase Additional Ordinary Shares |
| |
With
Option to Purchase Additional Ordinary Shares |
| |
Without
Option to Purchase Additional Ordinary Shares |
| |
With
Option to Purchase Additional Ordinary Shares |
| ||||||||||||
Initial public offering price
|
| | | $ | | | | | | $ | | | | | | $ | | | | | | $ | | | |
Underwriting discounts and commissions paid by us
|
| | | $ | | | | | | $ | | | | | | $ | | | | | | $ | | | |
Proceeds to us, before expenses
|
| | | $ | | | | | | $ | | | | | | $ | | | | | | $ | | | |
Itemized expense
|
| |
Amount
|
| |||
SEC registration fee
|
| | | $ | | | |
FINRA filing fee
|
| | |||||
NASDAQ Global Market listing fee
|
| | |||||
Printing and engraving expenses
|
| | |||||
Legal fees and expenses
|
| | |||||
Transfer agent and registrar fees
|
| | |||||
Accounting fees and expenses
|
| | |||||
Miscellaneous
|
| | | | | | |
Total
|
| | | $ | | | |
|
| | |
Page
|
|
| | | ||
FINANCIAL STATEMENTS: | | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | |
| Tel-Aviv, Israel | | | /s/ Kesselman & Kesselman | |
| March 30, 2017 | | | Certified Public Accountants (Isr.) | |
| | | | A member firm of PricewaterhouseCoopers International Limited | |
| | |
December 31
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
Assets
|
| | | ||||||||||
CURRENT ASSETS: | | | | ||||||||||
Cash and cash equivalents
|
| | | $ | 5,895 | | | | | $ | 7,001 | | |
Prepaid expenses and other current assets
|
| | | | 244 | | | | | | 472 | | |
Advance payment
|
| | | | — | | | | | | 823 | | |
TOTAL CURRENT ASSETS | | | |
|
6,139
|
| | | |
|
8,296
|
| |
NON-CURRENT ASSETS: | | | | ||||||||||
Advance payment
|
| | | | 625 | | | | | | — | | |
Long term receivables
|
| | | | — | | | | | | 1,190 | | |
Restricted long term deposits
|
| | | | 92 | | | | | | 107 | | |
Property and equipment, net
|
| | | | 785 | | | | | | 798 | | |
Funds in respect of employee rights upon retirement
|
| | | | 603 | | | | | | 594 | | |
TOTAL NON-CURRENT ASSETS | | | |
|
2,105
|
| | | |
|
2,689
|
| |
TOTAL ASSETS
|
| | | $ | 8,244 | | | | | $ | 10,985 | | |
Liabilities net of capital deficiency
|
| | | ||||||||||
CURRENT LIABILITIES: | | | | ||||||||||
Accounts payable
|
| | | $ | 311 | | | | | $ | 667 | | |
Accrued expenses and other
|
| | | | 1,487 | | | | | | 3,623 | | |
Loans from the controlling shareholder
|
| | | | 17,338 | | | | | | 37,338 | | |
TOTAL CURRENT LIABILITIES | | | |
|
19,136
|
| | | |
|
41,628
|
| |
LONG-TERM LIABILITIES – | | | | ||||||||||
Liability for employee rights upon retirement
|
| | | | 626 | | | | | | 694 | | |
TOTAL LONG-TERM LIABILITIES
|
| | | | 626 | | | | | | 694 | | |
COMMITMENTS
|
| | | | | | | | | | | | |
TOTAL LIABILITIES
|
| | | $ | 19,762 | | | | | $ | 42,322 | | |
CAPITAL DEFICIENCY: | | | | ||||||||||
Ordinary shares, NIS 0.1 par value – authorized: 8,775,783 as of
December 31, 2015 and 2016; issued and outstanding: 3,494,579 as of December 31, 2015 and 2016 |
| | | | 82 | | | | | | 82 | | |
Additional paid-in capital
|
| | | | 31,322 | | | | | | 32,274 | | |
Accumulated deficit
|
| | | | (42,922) | | | | | | (63,693) | | |
TOTAL CAPITAL DEFICIENCY
|
| | | | (11,518) | | | | | | (31,337) | | |
TOTAL LIABILITIES NET OF CAPITAL DEFICIENCY
|
| | | $ | 8,244 | | | | | $ | 10,985 | | |
|
| | |
Year ended December 31,
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
RESEARCH AND DEVELOPMENT EXPENSES
|
| | | $ | 7,184 | | | | | $ | 17,023 | | |
GENERAL AND ADMINISTRATIVE EXPENSES
|
| | | | 2,463 | | | | | | 3,733 | | |
TOTAL OPERATING LOSS
|
| | | | 9,647 | | | | | | 20,756 | | |
FINANCIAL EXPENSES, NET
|
| | | | 13 | | | | | | 15 | | |
LOSS FOR THE YEAR
|
| | | $ | 9,660 | | | | | $ | 20,771 | | |
BASIC AND DILUTED LOSS PER ORDINARY SHARE
|
| | | $ | 2.76 | | | | | $ | 5.94 | | |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE
|
| | |
|
3,494,579
|
| | | |
|
3,494,579
|
| |
|
| | |
Ordinary shares
|
| |
Additional
paid-in capital |
| |
Accumulated
deficit |
| |
Total
|
| ||||||||||||||||||
| | |
Number
of shares |
| |
Amounts
|
| |
Amounts
|
| |||||||||||||||||||||
BALANCE AS OF JANUARY 1, 2015
|
| | | | 3,494,579 | | | | | $ | 82 | | | | | $ | 30,193 | | | | | $ | (33,262) | | | | | $ | (2,987) | | |
CHANGES DURING 2015: | | | | | | | |||||||||||||||||||||||||
Loss for the year
|
| | | | | | | | | | | | | | | | | | | | | | (9,660) | | | | | | (9,660) | | |
Share-based compensation
|
| | | | | | | | | | | | | | | | 1,129 | | | | | | | | | | | | 1,129 | | |
BALANCE AS OF DECEMBER 31, 2015
|
| | | | 3,494,579 | | | | | | 82 | | | | | | 31,322 | | | | | | (42,922) | | | | | | (11,518) | | |
CHANGES DURING 2016: | | | | | | | |||||||||||||||||||||||||
Loss for the year
|
| | | | | | | | | | | | | | | | | | | | | | (20,771) | | | | | | (20,771) | | |
Share-based compensation
|
| | | | | | | | | | | | | | | | 952 | | | | | | | | | | | | 952 | | |
BALANCE AS OF DECEMBER 31, 2016
|
| | | | 3,494,579 | | | | | $ | 82 | | | | | | 32,274 | | | | | $ | (63,693) | | | | | $ | (31,337) | | |
|
| | |
Year ended December 31
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | ||||||||||
Loss
|
| | | $ | (9,660) | | | | | $ | (20,771) | | |
Adjustments required to reconcile loss to net cash used in operating activities:
|
| | | ||||||||||
Depreciation
|
| | | | 300 | | | | | | 359 | | |
Changes in accrued liability for employee rights upon retirement
|
| | | | (86) | | | | | | 68 | | |
Share-based compensation
|
| | | | 1,129 | | | | | | 952 | | |
In-process research and development acquired
|
| | | | 431 | | | | | | — | | |
Finance expenses, net
|
| | | | 17 | | | | | | 8 | | |
Changes in operating asset and liabilities:
|
| | | ||||||||||
Prepaid expenses and other current assets
|
| | | | 1 | | | | | | (228) | | |
Accounts payable, accrued expenses and other
|
| | | | 449 | | | | | | 2,505 | | |
Advance payment
|
| | | | (625) | | | | | | (198) | | |
Long term receivables
|
| | | | — | | | | | | (1,190) | | |
Net cash used in operating activities
|
| | | | (8,044) | | | | | | (18,495) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | ||||||||||
Purchase of property and equipment
|
| | | | (291) | | | | | | (385) | | |
Long term deposits
|
| | | | (8) | | | | | | (15) | | |
Amounts funded in respect of employee rights upon retirement,
net |
| | | | 89 | | | | | | 9 | | |
Net cash used in investing activities
|
| | | | (210) | | | | | | (391) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | ||||||||||
Loans received from the controlling shareholder
|
| | | | 13,572 | | | | | | 20,000 | | |
Net cash provided by financing activities
|
| | | | 13,572 | | | | | | 20,000 | | |
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS
|
| | |
|
(17)
|
| | | |
|
(8)
|
| |
INCREASE IN CASH AND CASH EQUIVALENTS
|
| | | | 5,301 | | | | | | 1,106 | | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR
|
| | |
|
594
|
| | | |
|
5,895
|
| |
CASH AND CASH EQUIVALENTS AT END OF THE YEAR
|
| | | $ | 5,895 | | | | | $ | 7,001 | | |
SUPPLEMENTARY INFORMATION ON INVESTING AND FINANCING ACTIVITIES NOT INVOLVING CASH FLOWS:
|
| | | ||||||||||
Purchase of property and equipment
|
| | | $ | 23 | | | | | $ | 10 | | |
Acquisition of in-process research and development product candidate
|
| | | $ | 431 | | | | | $ | — | | |
|
| | |
%
|
|
Laboratory equipment | | |
10 – 33 (mainly 15 – 25)
|
|
Office equipment and furniture | | |
7 – 15
|
|
Computers and related equipment | | |
33
|
|
| | |
December 31
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
Cost: | | | | ||||||||||
Laboratory equipment
|
| | | $ | 1,065 | | | | | $ | 1,263 | | |
Office equipment and furniture
|
| | | | 182 | | | | | | 234 | | |
Computers and software
|
| | | | 222 | | | | | | 282 | | |
Leasehold improvements
|
| | | | 466 | | | | | | 528 | | |
| | | | | 1,935 | | | | | | 2,307 | | |
Less: | | | | ||||||||||
Accumulated depreciation and amortization
|
| | | | (1,150) | | | | | | (1,509) | | |
Property and equipment, net
|
| | | $ | 785 | | | | | $ | 798 | | |
|
Year
|
| |
Amount
|
| |||
2017
|
| | | $ | 419 | | |
2018
|
| | | | 429 | | |
2019
|
| | | | 429 | | |
2020
|
| | | | 429 | | |
Total
|
| | | $ | 1,706 | | |
| | |
2015
|
| |
2016
|
|
Value of one ordinary share
|
| |
$11.35
|
| |
$21.59
|
|
Dividend yield
|
| |
0%
|
| |
0%
|
|
Expected volatility
|
| |
62.46% – 66.22%
|
| |
68.46% – 79.1%
|
|
Risk-free interest rate
|
| |
1.61% – 1.81%
|
| |
0.95% – 1.34%
|
|
Expected term
|
| |
5.5 – 7.5 years
|
| |
5 – 6.71 years
|
|
|
| | |
Year ended December 31
|
| |||||||||||||||||||||||||||||||||
| | |
2015
|
| |
2016
|
| ||||||||||||||||||||||||||||||
| | |
Number of
options |
| |
Weighted
average exercise price |
| |
Weighted
average remaining contractual life |
| |
Number of
options |
| |
Weighted
average exercise price |
| |
Weighted
average remaining contractual life |
| ||||||||||||||||||
Options outstanding at the beginning of the year
|
| | | | — | | | | | | — | | | | | | — | | | | | | 173,440 | | | | | $ | 2.86 | | | | | | 9.25 | | |
Granted
|
| | | | 173,440 | | | | | $ | 2.86 | | | | | | 9.25 | | | | | | 50,422 | | | | | $ | 2.86 | | | | | | 9.59 | | |
Options outstanding at the end
of the year |
| | | | 173,440 | | | | | $ | 2.86 | | | | | | 9.25 | | | | | | 223,862 | | | | | $ | 2.86 | | | | | | 8.55 | | |
Options exercisable at the end of the year
|
| | | | 54,200 | | | | | $ | 2.86 | | | | | | 9.25 | | | | | | 106,854 | | | | | $ | 2.86 | | | | | | 9.59 | | |
|
| | |
Year ended
December 31 |
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
Research and development expenses
|
| | | $ | 468 | | | | | $ | 541 | | |
General and administrative expenses
|
| | | | 661 | | | | | | 411 | | |
| | | | $ | 1,129 | | | | | $ | 952 | | |
|
| | |
As of December 31
|
| |||||||||
| | |
2015
|
| |
2016
|
| ||||||
In respect of: | | | | ||||||||||
Net operating loss carry forward
|
| | | $ | 9,468 | | | | | $ | 10,912 | | |
Research and development expenses
|
| | | | 1,377 | | | | | | 2,935 | | |
Other
|
| | | | 43 | | | | | | 152 | | |
Less – valuation allowance
|
| | | | (10,888) | | | | | | (13,999) | | |
Net deferred tax assets
|
| | | $ | — | | | | | $ | — | | |
|
| | | | Sol-Gel Technologies Ltd. | | |||
| | | | By: | | | | |
| | | | | | | Name: Alon Seri-Levy | |
| | | | | | | Title: Chief Executive Officer | |
Signatures
|
| |
Title
|
| |
Date
|
|
Alon Seri-Levy
|
| | Chief Executive Officer | | | , 2017 | |
Gilad Mamlok
|
| | Chief Financial Officer | | | , 2017 | |
Moshe Arkin
|
| | Director | | | , 2017 | |
| | | | By: | | |||
| | | | By: | | | | |
| | | | | | | Name: | |
| | | | | | | Title: | |
Exhibit No.
|
| |
Description
|
|
1.1* | | | Form of Underwriting Agreement. | |
3.1* | | | Amended and Restated Memorandum of Association of the Registrant. | |
3.2** | | | Articles of Association of the Registrant (currently in effect). | |
3.3* | | | Form of Amended and Restated Articles of Association of the Registrant to become effective upon closing of this offering. | |
4.1* | | | Form of Specimen Share Certificate. | |
5.1* | | | Form of Opinion of Gross, Kleinhendler, Hodak, Halevy, Greenberg & Co., Israeli counsel to the Registrant, as to the validity of the ordinary shares. | |
10.1** | | | 2014 Share Incentive Plan. | |
10.2* | | | Form of Registration Rights Agreement. | |
10.3+* | | | Development, Manufacturing and Commercialization Agreement between Perrigo UK Finco Limited Partnership and Sol-Gel Technologies Ltd., dated as of April 27, 2015. | |
10.4+* | | | Amendment to the Development, Manufacturing and Commercialization Agreement between the Registrant and Perrigo UK Finco Limited Partnership, dated as of October 26, 2015. | |
10.5+* | | | Development, Manufacturing and Commercialization Agreement between the Registrant and Perrigo UK Finco Limited Partnership, dated as of June 19, 2016. | |
10.6* | | | Form of Indemnification Agreement. | |
10.7* | | | Compensation Policy. | |
10.8**∞ | | | Lease Agreement by and between the Registrant and Rachel Zacks, dated as of October 10, 2007. | |
10.9**∞ | | | Lease Agreement by and between the Registrant and Rachel Zacks, dated as of September 29, 2014. | |
10.10**∞ | | | Lease Agreement by and between the Registrant and Rachel Zacks, dated as of March 30, 2016. | |
10.11**∞ | | | Lease Agreement by and between the Registrant and Rachel Zacks, dated as of September 20, 2016. | |
10.12**∞ | | | Lease Agreement by and between the Registrant and Rachel Zacks, dated as of January 30, 2017. | |
10.13** | | | Promissory Note by and between the Registrant and Moshe Arkin, dated as of August 2, 2016. | |
10.14 | | | Schedule A, as amended, of Promissory Note by and between the Registrant and Moshe Arkin, dated as of June 28, 2017. | |
10.15** | | | Assignment Agreement between the Registrant and Medicis Pharmaceutical Corporation, dated August 16, 2013. | |
21.1** | | | List of subsidiaries of the Registrant. | |
23.1* | | | Consent of Kesselman and Kesselman, Member Firm of PricewaterhouseCoopers International Limited. | |
23.2* | | | Consent of Gross, Kleinhendler, Hodak, Halevy, Greenberg & Co., Israeli counsel to the Registrant (included in Exhibit 5.1). | |
Exhibit No.
|
| |
Description
|
|
24.1** | | | Power of Attorney (included in the signature page of the Registration Statement). | |
99.1** | | | Consent of director nominee. | |
99.2** | | | Consent of director nominee. | |
99.3** | | | Consent of director nominee. | |
99.4 | | | Consent of director nominee. | |
99.5 | | | Consent of director nominee. | |
99.6 | | | Consent of director nominee. | |
Exhibit 10.14
Schedule A
Loan No. | Date of Loan | Loan Amount | ||||
1 | 18/08/2014 | $ | 834,554 | |||
2 | 22/10/2014 | $ | 2,500,000 | |||
3 | 04/02/2015 | $ | 1,500,000 | |||
4 | 24/04/2015 | $ | 5,000,000 | |||
5 | 08/07/2015 | $ | 500,330 | |||
6 | 30/11/2015 | $ | 1,500,000 | |||
7 | 16/12/2015 | $ | 5,000,000 | |||
8 | 31/12/2015 | $ | 502,242 | |||
9 | 3/5/2016 | $ | 5,000,000 | |||
10 | 22/8/2016 | $ | 5,000,000 | |||
11 | 9/11/2016 | $ | 5,000,000 | |||
12 | 21/12/2016 | $ | 5,000,000 | |||
13 | 06/04/2017 | $ | 5,000,000 | |||
14 | 01/06/2017 | $ | 5,000,000 | |||
15 | 28/06/2017 | $ | 18,000,000 | |||
Aggregate Principle Amount: | $ | 65,337,126 |
Updated on June 28, 2017.
/s/ Moshe Arkin | |
Moshe Arkin |
/s/ Gilad Mamlok | |
Sol-Gel Technologies Ltd. |
Exhibit 99.4
Consent of Director Nominee
I hereby consent, pursuant to Rule 438 under the Securities Act of 1933, to being named in the Registration Statement on Form F-1 of Sol-Gel Technologies Ltd. (the “Company”) as a person who will become a director of the Company in connection with the initial public offering of the Company’s Ordinary Shares contemplated in the Registration Statement. I also consent to the filing of this consent as an exhibit to such Registration Statement and any amendments thereto.
/s/ Dr. Shmuel Ben Zvi | |
Dr. Shmuel Ben Zvi | |
Date: July 18, 2017 |
Exhibit 99.5
Consent of Director Nominee
I hereby consent, pursuant to Rule 438 under the Securities Act of 1933, to being named in the Registration Statement on Form F-1 of Sol-Gel Technologies Ltd. (the “Company”) as a person who will become a director of the Company in connection with the initial public offering of the Company’s Ordinary Shares contemplated in the Registration Statement. I also consent to the filing of this consent as an exhibit to such Registration Statement and any amendments thereto.
/s/ Yael Baratz | |
Yael Baratz |
Date: July 28, 2017
Exhibit 99.6
Consent of Director Nominee
I hereby consent, pursuant to Rule 438 under the Securities Act of 1933, to being named in the Registration Statement on Form F-1 of Sol-Gel Technologies Ltd. (the “Company”) as a person who will become a director of the Company in connection with the initial public offering of the Company’s Ordinary Shares contemplated in the Registration Statement. I also consent to the filing of this consent as an exhibit to such Registration Statement and any amendments thereto.
/s/ Hani Lerman | |
Hani Lerman |
Date: July 30, 2017