On August 14, 2023 VBL Therapeutics (Nasdaq: VBLT) ("VBL"), reported financial results for the second quarter ended June 30, 2023, and provided a corporate update (Press release, VBL Therapeutics, AUG 14, 2023, View Source [SID1234634383]).
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"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 SEC, and subject to it being declared effective and shareholder approvals, we expect to close the merger in late September or October 2023."
Recent Corporate Highlights
VBL continues to make progress towards the closing of the proposed merger with Notable Labs, Inc. ("Notable") announced on February 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") on May 11, 2023 but has not yet been declared effective.
On June 30, 2023, VBL entered into a non-binding term sheet with Wellbeing Group Ltd. ("Wellbeing"), as amended on July 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 the European 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 ended June 30, 2022, which was comprised of $6.7 million in research and development expenses, net, and $2.9 million in general and administrative expenses.