Conference call and webcast: today, August 17, 2023, 9:00 am ET
REHOVOT, Israel, Aug. 17, 2023 /PRNewswire/ -- Evogene Ltd. (Nasdaq: EVGN) (TASE: EVGN), a leading computational biology company aiming to revolutionize life-science-based product discovery and development utilizing cutting-edge computational biology technologies across multiple market segments, today announced its financial results for the second quarter period ended June 30, 2023.
Ofer Haviv, Evogene's President and Chief Executive Officer, stated: "The second quarter of 2023 marked a period of remarkable achievements for the Evogene group. It was a pivotal point in the transformation that Evogene has been undergoing since the creation of our three AI tech- engines in 2019. Listing some of the main achievements in this period: announcing the receiving of purchase orders in the aggregate amount of $11.3 million for Casterra's elite castor seeds; execution of a licensing agreement between Lavie Bio and Corteva, which includes an upfront payment of $5 million, in addition to milestone and royalty payments; closing of a financial round for Biomica in the amount of $20 million; significant infrastructure and computational architecture improvements, including new applications, in our tech-engines resulting in new capabilities, and better automation, scalability, and speed; and last but not least, receiving the trust of high quality investors demonstrated by an investment in Evogene's equity in the gross amount of $8.5 million in our recent financing round, all happening in a relatively short timeframe. These are clear signals that the Evogene Group is on the right path to success."
Mr. Haviv further stated: "In parallel, Evogene is increasing its efforts to establish direct collaborations with leading companies in new domains of activity, areas not currently covered by our subsidiaries, for product development leveraging our tech-engines. Although these discussions have only recently begun, the responses we have received to our unique offering have been positive, and we hope that some of these discussions will materialize into collaborative agreements in the near future."
Evogene and Subsidiaries - Highlights
Evogene Ltd.
Lavie Bio Ltd. - develops and commercializes microbiome-based ag-biological products, utilizing Evogene's MicroBoost AI tech-engine.
AgPlenus Ltd. - aims to develop and commercialize next-generation crop protection products, utilizing Evogene's ChemPass AI tech-engine.
Casterra Ltd. - provides an integrated end-to-end solution for large-scale castor bean cultivation, utilizing Evogene's GeneRator AI tech-engine.
Consolidated Financial Results Summary
The injection of funds from the last round in July, total gross proceeds of $8.5 million, strengthens Evogene's financial position and provides the Company with the resources needed to execute its plans effectively and in a timely fashion. An example of such financial need is the significant increase in the required working capital of our wholly owned subsidiary, Casterra, to produce the castor seeds needed to fulfill the purchase orders received in the last months, totaling $11.3 million.
It is important to note that the $10 million reflected in the June 30th cash balance of Evogene together with Casterra, Canonic and AgPlenus, do not include funds raised by Evogene in July and any amount due under the purchase orders received by Casterra in the last few months, which are expected to be supplied during the second half of the year and at the beginning of next year. Further, note that the $7.1 million reflected in the cash balance of Lavie Bio, does not include the $5 million expected to be received as an upfront payment from the licensing agreement with Corteva that was announced in July.
During the second quarter, the consolidated cash usage was approximately $5.6 million, which included $2.8 million used by Lavie Bio and Biomica.
For the full press release (includes financial tables), click here.
For an accessible file (includes financial tables), click here.
Evogene has published its updated investor presentation, which can be found on its investor relations' website at: https://www.evogene.com/investor-relations/presentations-and-webcasts/
Conference Call & Webcast Details:
Date: August 17, 2023. Time: 9:00 am ET; 4:00 pm IDT
Dial-in numbers:1-888-281-1167 toll-free from the United States, or +972-3-918-0609 internationally
Webcast & Presentation link available at: https://www.evogene.com/investor-relations/presentations-and-webcasts/
The Company's investor presentation can be viewed at the above link, which is in the investor relations section of the company website.
Replay Information: A replay of the conference call will be available approximately two hours following the completion of the call.
To access the replay, please dial 1-888-326-9310 toll-free from the United States or +972-3-925-5901 internationally. The replay will be accessible following the call for three days. An archive of the webcast will be available on the Company's website.
About Evogene Ltd.
Evogene Ltd. (Nasdaq: EVGN, TASE: EVGN) is a computational biology company leveraging big data and artificial intelligence, aiming to revolutionize the development of life-science based products by utilizing cutting-edge technologies to increase the probability of success while reducing development time and cost.
Evogene established three unique tech-engines ? MicroBoost AI, ChemPass AI and GeneRator AI. Each tech-engine is focused on the discovery and development of products based on one of the following core components: microbes (MicroBoost AI), small molecules (ChemPass AI), and genetic elements (GeneRator AI).
Evogene uses its tech-engines to develop products through strategic partnerships and collaborations, and its five subsidiaries including:
For more information, please visit: www.evogene.com.
Forward-Looking Statements
This press release contains "forward-looking statements" relating to future events. These statements may be identified by words such as "may", "could", "expects", "hopes" "intends", "anticipates", "plans", "believes", "scheduled", "estimates", "demonstrates" or words of similar meaning. For example, Evogene and its subsidiaries are using forward-looking statements in this press release when it discusses establishment of collaboration agreements with leading companies in new domains of activity, TargetSelector ability to identify novel target proteins for innovative products, the BMC426 and BMC427 for IBS treatment effectiveness in reducing visceral pain and related studies and trials, future milestone payments and royalties from Corteva's sales of Lavie Bio's products, the resources needed to execute the company's plans effectively and in a timely fashion, return on investment for farmers who use ThrivusTM, and the enhancement of AgPlenus' ability to identify new pesticide mechanisms due to the use of Evogene's TargetSelector application. Such statements are based on current expectations, estimates, projections and assumptions, describe opinions about future events, involve certain risks and uncertainties which are difficult to predict and are not guarantees of future performance. Therefore, actual future results, performance, or achievements of Evogene and its subsidiaries may differ materially from what is expressed or implied by such forward-looking statements due to a variety of factors, many of which are beyond the control of Evogene and its subsidiaries, including, without limitation, those risk factors contained in Evogene's reports filed with the applicable securities authority. In addition, Evogene and its subsidiaries rely, and expect to continue to rely, on third parties to conduct certain activities, such as their field trials and pre-clinical studies, and if these third parties do not successfully carry out their contractual duties, comply with regulatory requirements or meet expected deadlines, Evogene and its subsidiaries may experience significant delays in the conduct of their activities. Evogene and its subsidiaries disclaim any obligation or commitment to update these forward-looking statements to reflect future events or developments or changes in expectations, estimates, projections and assumptions.
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Evogene Investors' Contact:
Rachel Pomerantz Gerber, Head of Investor Relations at Evogene
Email: [email protected]
Tel: +972-8-9311901
CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
June 30, | December 31, | |||
2023 | 2022 | |||
Unaudited | Audited | |||
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 20,233 | $ 28,980 | ||
Marketable securities | - | 6,375 | ||
Short-term bank deposits | 13,641 | - | ||
Trade receivables | 178 | 348 | ||
Other receivables and prepaid expenses | 1,419 | 1,482 | ||
Inventories | 249 | 566 | ||
35,720 | 37,751 | |||
LONG-TERM ASSETS: | ||||
Long-term deposits and other receivables | 53 | 74 | ||
Deferred taxes | - | 94 | ||
Right-of-use-assets | 1,319 | 1,568 | ||
Property, plant and equipment, net | 2,589 | 2,499 | ||
Intangible assets, net | 13,659 | 14,140 | ||
17,620 | 18,375 | |||
$ 53,340 | $ 56,126 | |||
CURRENT LIABILITIES: | ||||
Trade payables | $ 1,078 | $ 1,036 | ||
Employees and payroll accruals | 2,159 | 1,987 | ||
Lease liability | 894 | 884 | ||
Liabilities in respect of government grants | 541 | 79 | ||
Deferred revenues and other advances | 392 | 22 | ||
Other payables | 1,327 | 1,617 | ||
6,391 | 5,625 | |||
LONG-TERM LIABILITIES: | ||||
Lease liability | 585 | 932 | ||
Liabilities in respect of government grants | 4,343 | 4,665 | ||
Other advances | 578 | - | ||
Convertible SAFE | 10,334 | 10,114 | ||
15,840 | 15,711 | |||
SHAREHOLDERS' EQUITY: | ||||
Ordinary shares of NIS 0.02 par value: Authorized ? 150,000,000 ordinary shares; Issued | 237 | 235 | ||
Share premium and other capital reserve | 261,052 | 261,402 | ||
Accumulated deficit | (247,001) | (233,707) | ||
Equity attributable to equity holders of the Company | 14,288 | 27,930 | ||
Non-controlling interests | 16,821 | 6,860 | ||
Total equity | 31,109 | 34,790 | ||
$ 53,340 | $ 56,126 | |||
CONSOLIDATED INTERIM STATEMENTS OF PROFIT OR LOSS
U.S. dollars in thousands (except share and per share data)
Six months ended June 30, | Three months ended June 30, | Year ended | ||||||||
2023 | 2022 | 2023 | 2022 | 2022 | ||||||
Unaudited | Audited | |||||||||
Revenues | $ 1,295 | $549 | $654 | $312 | $ 1,675 | |||||
Cost of revenues | 783 | 425 | 461 | 262 | 909 | |||||
Gross profit | 512 | 124 | 193 | 50 | 766 | |||||
Operating expenses (income): | ||||||||||
Research and development, net | 10,169 | 11,043 | 5,369 | 5,417 | 20,792 | |||||
Sales and marketing | 1,728 | 1,870 | 928 | 962 | 3,933 | |||||
General and administrative | 3,312 | 3,273 | 1,797 | 1,678 | 6,482 | |||||
Other income | - | - | - | - | (3,500) | |||||
Total operating expenses, net | 15,209 | 16,186 | 8,094 | 8,057 | 27,707 | |||||
Operating loss | (14,697) | (16,062) | (7,901) | (8,007) | (26,941) | |||||
Financing income | 699 | 485 | 391 | 444 | 516 | |||||
Financing expenses | (785) | (3,243) | (247) | (2,153) | (3,329) | |||||
Financing income (expenses), net | (86) | (2,758) | 144 | (1,709) | (2,813) | |||||
Loss before taxes on income | (14,783) | (18,820) | (7,757) | (9,716) | (29,754) | |||||
Taxes on income (tax benefit) | (24) | 40 | 21 | 38 | 90 | |||||
Loss | $ (14,759) | $(18,860) | $(7,778) | $(9,754) | $ (29,844) | |||||
Attributable to: | ||||||||||
Equity holders of the Company | $ (13,294) | $(17,096) | $ (7,023) | $ (8,821) | $ (26,638) | |||||
Non-controlling interests | (1,465) | (1,764) | (755) | (933) | (3,206) | |||||
$ (14,759) | $(18,860) | $(7,778) | $(9,754) | $ (29,844) | ||||||
Basic and diluted loss per share, | $ (0.32) | $(0.42) | $(0.17) | $(0.21) | $ (0.65) | |||||
Weighted average number of | 41,567,298 | 41,195,024 | 41,644,182 | 41,202,018 | 41,210,184 |
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Six months ended June 30, | Three months ended June 30, | Year ended December31, | ||||||||||
2023 | 2022 | 2023 | 2022 | 2022 | ||||||||
Unaudited | Audited | |||||||||||
Cash flows from operating activities | ||||||||||||
Loss | $ (14,759) | $ (18,860) | $ (7,778) | $ (9,754) | $ (29,844) | |||||||
Adjustments to reconcile loss to net | ||||||||||||
Adjustments to the profit or loss items: | ||||||||||||
Depreciation | 807 | 717 | 406 | 371 | 1,513 | |||||||
Amortization of intangible assets | 481 | 577 | 241 | 242 | 1,067 | |||||||
Share-based compensation | 1,219 | 830 | 801 | 419 | 1,186 | |||||||
Revaluation of convertible SAFE | 220 | - | 26 | - | 114 | |||||||
Net financing expenses | 6 | 3,146 | 60 | 2,033 | 2,986 | |||||||
Loss from sale of property, plant and equipment | (26) | - | - | - | - | |||||||
Taxes on income (tax benefit) | (24) | 40 | 21 | 38 | 90 | |||||||
2,683 | 5,310 | 1,555 | 3,103 | 6,956 | ||||||||
Changes in asset and liability items: | ||||||||||||
Decrease (increase) in trade receivables | 170 | 170 | 72 | 55 | (67) | |||||||
Decrease in other receivables | 84 | 463 | 375 | 551 | 1,113 | |||||||
Decrease (increase) in inventories | 317 | (70) | 342 | 10 | (474) | |||||||
Increase in deferred taxes | - | - | - | - | (94) | |||||||
Increase (decrease) in trade payables | 26 | (172) | (95) | (6) | (469) | |||||||
Increase (decrease) in employees and payroll accruals | 172 | (278) | 117 | (272) | (675) | |||||||
Increase (decrease) in other payables | (162) | (593) | 297 | (147) | 48 | |||||||
Decrease in deferred revenues and other advances | (73) | (159) | (81) | (99) | (153) | |||||||
534 | (639) | 1,027 | 92 | (771) | ||||||||
Cash received (paid) during the period for: | ||||||||||||
Interest received | 283 | 80 | 145 | 31 | 186 | |||||||
Interest paid | (66) | (227) | (30) | (103) | (165) | |||||||
Taxes paid | (10) | (29) | (10) | (27) | (40) | |||||||
Net cash used in operating activities | $ (11,335) | $ (14,365) | $ (5,091) | $ (6,658) | $ (23,678) |
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Six months ended June 30, | Three months ended June 30, | Year ended | ||||||||
2023 | 2022 | 2023 | 2022 | 2022 | ||||||
Unaudited | Audited | |||||||||
Cash flows from investing activities: | ||||||||||
Purchase of property, plant and equipment | (483) | (747) | (124) | (305) | $ (1,171) | |||||
Proceeds from sale of marketable securities | 6,924 | 12,149 | 6,287 | 2,725 | 12,356 | |||||
Purchase of marketable securities | (503) | (659) | (503) | (659) | (911) | |||||
Proceeds from sale of property, plant and equipment | 26 | - | - | - | - | |||||
Withdrawal from (investment in) bank deposits | (13,560) | 3,000 | (13,560) | - | 3,000 | |||||
Net cash provided by (used in) investing activities | $ (7,596) | $ 13,743 | $ (7,900) | $ 1,761 | $ 13,274 | |||||
Cash flows from financing activities: | ||||||||||
Issuance of a subsidiary preferred shares to | 9,523 | - | 9,523 | - | - | |||||
Proceeds from issuance of ordinary shares, | 336 | - | 68 | - | 21 | |||||
Proceeds from issuance of convertible SAFE | - | - | - | - | 10,000 | |||||
Proceeds from exercise of options | - | 7 | - | - | 7 | |||||
Repayment of lease liability | (413) | (492) | (207) | (369) | (803) | |||||
Proceeds from government grants | 1,089 | 30 | 1,063 | - | 149 | |||||
Repayment of government grants | (35) | (14) | - | - | (31) | |||||
Net cash provided by (used in) financing activities | 10,500 | (469) | 10,447 | (369) | 9,343 | |||||
Exchange rate differences - cash and cash | (316) | (2,367) | (223) | (1,880) | (2,284) | |||||
Decrease in cash and cash equivalents | (8,747) | (3,458) | (2,767) | (7,146) | (3,345) | |||||
Cash and cash equivalents, beginning of the period | 28,980 | 32,325 | 23,000 | 36,013 | 32,325 | |||||
Cash and cash equivalents, end of the period | $ 20,233 | $ 28,867 | $ 20,233 | $ 28,867 | $ 28,980 | |||||
Significant non-cash activities | ||||||||||
Acquisition of property, plant and equipment | $ 90 | $ 66 | $ 21 | $ 66 | $ 74 | |||||
Increase of right-of-use asset recognized | $ 135 | $ 30 | $ 64 | $ - | $ 90 |
SOURCE Evogene
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