CollPlant raises $5m, to uplist on Nasdaq

CollPlant tobacco greenhouse, photo:PR

The company will also consider delisting from the TASE.

CollPlant Holdings Ltd. (TASE: CLPT), which produces human collagen from genetically engineered tobacco plants, has announced its intention to uplist its shares to the main Nasdaq exchange (it is currently listed on the over-the-counter index, but most trading in the share takes place on the Tel Aviv Stock Exchange (TASE)). The company's decision came after it raised $5 million from a US investor, which was reported last week. The CollPlant share price jumped 12% today, pushing its market cap up to NIS 63 million. The share has lost two thirds of its value over the past year.

The investor made some of his investment contingent on uplisting the share on Nasdaq, and the company's report states that the investor will help the company accomplish this. The investor's name was not disclosed, but will be revealed soon when he becomes a party at interest in CollPlant. The investment will enable the company to uplist its share on Nasdaq. CollPlant may later delist its share from the TASE, leaving it listed only on Nasdaq.

CollPlant has two products approved for marketing in Europe. The company does not yet have any significant revenue from these products, which have only been marketed for a few months. One of the products, used in the treatment of tendinopathy, is being marketed by leading sports medicine company Arthrex GmbH. The other product, used in the treatment of chronic wounds and operating room incisions, is being marketed independently by CollPlant and local distributors in four European countries.

CollPlant is also active in 3D biological printing of tissues and organs. The company works with two international companies, with its product serving as a foundation on which cells can be "printed" in order to form organs. The advantage of using CollPlant's collagen as a foundation is a lower risk that the collagen will be rejected as a foreign body, and that infections will develop.

CollPlant CFO Eran Rotem says that products in this sector are likely to reach the market in 5-6 years, and that CollPlant has a good chance of signing important agreements with pharma and medical device companies supplying the cells before that happens.

In its report about completion of the investment, and the plan to uplist on Nasdaq, Collplant noted that it had begun talks with a party at interest in the company for a substantial additional investment in the company. Parties at interest in CollPlant include Meitav Dash Investments Ltd. (TASE:MTDS) (15.5%), Docor (6.3%), and Ami Sagi (5.3%).

Published by Globes [online], Israel Business News - www.globes-online.com - on September 7, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

5 Comments
View comments in rows
Update by email about comments talkback
POST
Comments
CollPlant tobacco greenhouse, photo:PR
CollPlant tobacco greenhouse, photo:PR
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018