Evogene Ltd 6-K, filed Mar 3, 2021
Evogene Ltd. (EVGN)
About this 6-K
Evogene Ltd filed this 6-K on March 3, 2021.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2021
Commission File Number: 001-36187
EVOGENE LTD.
(Translation of Registrant’s Name into English)
13 Gad Feinstein Street
Park Rehovot P.O.B 2100
Rehovot 7612002 Israel
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
CONTENTS
On March 3, 2021, Evogene Ltd. (“Evogene”) announced its financial results for the fourth quarter and fiscal year ended December 31, 2020. Also on March 3, 2021, Evogene made available an updated corporate presentation on its website. Copies of the press release announcing those results and presentation are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Report of Foreign Private Issuer on Form 6-K (this “Form 6-K”) and are incorporated herein by reference.
The contents of Exhibit 99.1 to this Form 6-K, excluding the statements of Evogene’s President and CEO contained therein, are incorporated by reference in the registration statements on Form F-3 (Securities and Exchange Commission (“SEC”) File No. 333-253300, filed with the SEC on February 19, 2021), and Form S-8 (SEC File Nos. 333-193788, 333-201443 and 333-203856, filed with the SEC on February 6, 2014, January 12, 2015 and May 5, 2015, respectively) of Evogene, and will be a part thereof from the date on which this Form 6-K is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: March 3, 2021 | EVOGENE LTD.<br><br> (Registrant)<br><br> <br><br> By: /s/ Dorit Kreiner<br><br> Dorit Kreiner<br><br> Chief Financial Officer |
|---|
EXHIBIT INDEX
| EXHIBIT NO. | DESCRIPTION |
|---|---|
| 99.1 | Press Release: Evogene Reports Fourth Quarter and Full Year 2020<br> Financial Results. |
| 99.2 | Evogene Corporate Presentation – March 2021. |
Exhibit 99.1
Evogene Reports Fourth Quarter and Full Year 2020 Financial Results
Conference call and webcast: today, March 3, 2021, 9:00 am ET
Rehovot, Israel – March 3, 2021 – Evogene Ltd. (NASDAQ: EVGN, TASE: EVGN.TA), a leading computational biology company targeting to revolutionize life-science product discovery and development across several market segments, announces today its financial results for the fourth quarter and full year ended December 31, 2020.
Mr. Ofer Haviv, Evogene's President and CEO, stated, “2020 was a year of significant accomplishment for Evogene as we successfully realigned our organizational structure and core capabilities to dramatically accelerate the company's progress and value creation. Our excitement at Evogene today is primarily due to two substantial value creators that have resulted from our long-term commitment to computational predictive biology (CPB) for the development of life science-based products. The first value creator is our growing group of highly focused subsidiaries in multiple key markets, each with what we believe are very attractive products under development and a unique capability to advance them relatively rapidly towards commercialization. The second value creator is Evogene’s powerful technology hub, our CPB platform and three dedicated engines: MicroBoost AI, ChemPass AI, and GeneRator AI, for products based on three core components: microbes, small molecules and genetic elements, respectively. This hub is allowing us, in addition to supporting our subsidiaries, to establish product pipelines in new fields of activity.
I would like to provide key information on our subsidiaries' main achievements in 2020 and lead on to their intended future plans for 2021-2022.”
2020 main achievements
Biomica
| ◾ | Immuno-oncology program - positive results in pre-clinical study were achieved. |
|---|---|
| ◾ | Immuno-oncology program - initial scale-up and first GMP production of drug candidates, as preparation for first-in-man clinical trial, expected to be initiated in 2021. |
| --- | --- |
Canonic
| ◾ | MetaYield product family - identification of leading lines to be further developed into commercial varieties, towards expected commercial launch in Israel in 2022. |
|---|---|
| ◾ | Go-to-market strategy - signed an agreement with a commercial partner for cultivation and production of proprietary cannabis varieties, as part of the strategic goal to build an end-to-end value chain - from seed to product sale. |
| --- | --- |
AgPlenus
| ◾ | Herbicide program - entry into a strategic collaboration with Corteva Agriscience (NYSE: CTVA), to develop a novel herbicide, based on pre-lead candidates. |
|---|---|
| ◾ | Herbicide program - reaching a lead phase for lead candidate APH1, following the completion of field tests that demonstrated APH1’s effective control over a broad panel of weeds, including ones known to have resistance to existing<br> herbicides. These results were confirmed in independent field tests, conducted by SynTech Research. |
| --- | --- |
Lavie Bio
| ◾ | Bio-pesticide program - LAV312 showed positive results in protecting grapes from Botritis, in a trial that took place in an Italian vineyard. Product is expected to reach the market in 2024. |
|---|---|
| ◾ | Bio-stimulant program - LAV211 was successfully combined with harvesting spring wheat in North Dakota. Based on results gained during the last three years, product launch is expected in 2022. |
| --- | --- |
Future expected milestones
Biomica
2021
| ◾ | Inflammatory Bowel Disease (IBD) program - extend pre-clinical study. |
|---|---|
| ◾ | Immuno-oncology program - initiate proof of concept, first-in-man study. |
| --- | --- |
2022
| ◾ | IBD program - initiate first GMP production of drug candidates for IBD. |
|---|---|
| ◾ | Immuno-oncology program - readout from proof of concept, first-in-man study. |
| --- | --- |
Canonic
2021
| ◾ | MetaYield product family - reach first commercial variety; sign distribution agreements in anticipation for commercialization in 2022. |
|---|---|
| ◾ | Precise product family - identify specific lines that exhibit distinct effect in model systems for reducing pain or inflammation. |
| --- | --- |
2022
| ◾ | MetaYield product family- commercial launch and initial sales of first product in Israel. |
|---|---|
| ◾ | Precise product family - reach first commercial variety for reducing pain or inflammation as preparation for commercial launch in 2023. |
| --- | --- |
AgPlenus
2021
| ◾ | Herbicide program - reach a herbicide tolerance trait proof of concept for APH1. |
|---|---|
| ◾ | Herbicide program / insecticide program - sign a licensing agreement for a leading candidate. |
| --- | --- |
2022
| ◾ | Herbicide program - reach an ‘Optimized Lead’ phase for APH1. |
|---|---|
| ◾ | Herbicide program - sign a strategic agreement for the development of an ‘Optimized Lead’ compound. |
| --- | --- |
Lavie Bio
2021
| ◾ | Bio-pesticide program - complete LAV311/312 development towards regulation. |
|---|---|
| ◾ | Bio-stimulant program - conduct pre-commercial trials for LAV211 in spring wheat. |
| --- | --- |
2022
| ◾ | Bio-stimulant program - initial product sales of LAV211 for spring wheat. |
|---|---|
| ◾ | Bio-pesticide program - file for regulatory approval for leading product candidate LAV311 / LAV312. |
| --- | --- |
Mr. Haviv continued: “I hope you are as excited as I am about Evogene's subsidiaries' expected future milestones. But these are not all the highlights I wish to update you about today. Evogene is currently evaluating entry into various new fields of activity in which our technology could provide significant competitive advantages, such as:
| ◾ | Developing products based on microbes to address various market needs in the aqua-culture industry, using MicroBoost AI; |
|---|---|
| ◾ | Drug optimization in human health, using ChemPass AI; and |
| --- | --- |
| ◾ | Developing high quality plant-based food based on genome editing, using GeneRator AI. |
| --- | --- |
2020 was Evogene’s coming of age and it is only the beginning. We enthusiastically look forward to continuing our progress, achieving our defined targets, and expanding the use of our technology into new fields of activity,” Mr. Haviv concluded.
Consolidated financial results for the fourth quarter and full year ended December 31, 2020:
Cash position: As of December 31, 2020, the company’s consolidated cash, cash related accounts and bank deposits amounted to approximately $48.2 million. Approximately $13.0 million of Evogene’s consolidated cash is appropriated to its subsidiary, Lavie Bio.
The $48.2 million does not include $28.0 million received after year end from the company’s “At the Market Offering” (ATM) initiated in January 2021 and concluded during February 2021. The weighted average selling price under the ATM offering was $7.36 per share. As a result of such offering, Evogene exhausted the remaining amount under the shelf prospectus filed in July 2020.
During the fourth quarter of 2020, the company’s consolidated net cash usage was approximately $6.1 million, or $5.1 million, if excluding Lavie Bio. During the full year 2020, consolidated net cash usage was approximately $19.3 million, or $14.7 million, if excluding Lavie Bio, which is in the range estimated for the full year 2020.
For the year ending December 31, 2021, Evogene expects to see an increase in the cash usage as its subsidiaries enter advanced stages of product development and commercialization: Biomica is expecting to conduct its first in-man clinical trial, AgPlenus is expecting to conduct a broad field trial in its herbicide program towards an ‘Optimized Lead’, and both Canonic and LavieBio are preparing for their respective first product launches during 2022.
For the year ending December 31, 2021, we estimate that net cash usage will be within the range of $26.0 - $28.0 million. Excluding cash usage by Evogene’s subsidiary Lavie Bio, the company estimates net cash usage will be within the range of $20.0 - $22.0 million.
We do not currently have any bank debt.
Pre-funded warrants: A new line item on the balance sheet this quarter relates to pre-funded warrants that were issued in conjunction with the $12.0 million registered direct offering that was completed in November 2020. In accordance with the International Financial Reporting Standards, these warrants were recorded as a liability as of December 31, 2020. These warrants were exercised for ordinary shares of Evogene at the beginning of January 2021, and therefore will not appear on our balance sheet next quarter.
Research and Development (“R&D”) expenses: R&D expenses, which are reported net of grants received, were approximately $4.8 million for the fourth quarter of 2020, in comparison to $5.2 million in the fourth quarter of 2019. This decrease in R&D expenses during the fourth quarter was mainly due to grants received from the Israeli Innovation Authority. For the full year 2020, R&D expenses were approximately $17.3 million, compared to $15.8 million in 2019. The increase in R&D expenses for 2020 was mainly attributed to payments made to third parties in connection with pre-clinical studies conducted for Biomica, field trials conducted in target locations for Lavie Bio, and an increase in non-cash expenses of $1.4 million for amortization of share-based compensation.
General and Administrative (“G&A”) expenses: G&A expenses were approximately $1.7 million for the fourth quarter of 2020, in comparison to $1.1 million in the fourth quarter of 2019. The increase during the fourth quarter of 2020 was partly attributed to the impact of an industry-wide increase in the cost of directors' and officers' insurance. For the full year 2020, G&A expenses were approximately $5.3 million, compared with $3.8 million in 2019. For the full year 2020, the increase was also primarily attributed to the impact of the cost of directors' and officers' insurance as well as due to an increase in non-cash expenses of amortization of share-based compensation.
Operating loss: Operating loss for the fourth quarter of 2020 was $7.2 million, in comparison to $6.9 million for the fourth quarter of 2019. For the full year 2020, the operating loss was $24.8 million, compared with $21.2 million in 2019. The increase in operating loss during the fourth quarter and for the full year of 2020 is primarily attributed to the increase in the aforementioned operating expenses.
Loss: For the fourth quarter of 2020, the company’s loss was $8.8 million, in comparison to $6.7 million during the fourth quarter of 2019. For the full year 2020, the loss was $26.2 million, compared with $19.1 million in 2019. The increase in the loss during the fourth quarter and for the full year 2020 is primarily attributed to the increase in operating expenses and an increase in financing expenses mainly attributed to $1.9 million of non-cash expenses related to the revaluation of pre-funded warrants mentioned above.
***
Conference Call & Webcast Details:
Date: March 3, 2021
Time: 9:00am EST; 16:00 Israel time
Dial-in number: 1-888-668-9141 toll free from the United States, or +972-3-918-0609 internationally
Webcast: Available at www.evogene.com.
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 +972-3-925-5904 internationally. The replay will be accessible through March 5, 2021, and an archive of the webcast will be available on the Company’s website.
About Evogene Ltd.:
Evogene (NASDAQ: EVGN, TASE: EVGN.TA) is a leading company in leveraging computational biology to design novel products for life-science-based industries including human health, agriculture, and industrial applications. Leveraging Big Data and Artificial Intelligence while incorporating a deep understanding of biology, Evogene established its unique technology, the Computational Predictive Biology (CPB) platform, to computationally design microbes, small molecules and genes as the core components for life-science products. Evogene holds a number of subsidiaries utilizing the CPB platform, for the development of human microbiome-based therapeutics, medical cannabis, ag-biologicals, ag-chemicals, seed traits and ag-solutions for castor oil production. 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”, “intends”, “anticipates”, “plans”, “believes”, “scheduled”, “estimates” or words of similar meaning. For example, Evogene is using forward-looking statement in this press release when it discusses its expected value creators, its and its’ subsidiaries expected trials, studies, launches, milestones and other plans for 2021 and 2022, its anticipated entry into new fields of activity and its expected cash usage for the year ending December 31, 2021. 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, as well as a result of the impacts of the COVID-19 pandemic. 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 (including as a result of the effect of the Coronavirus), 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.
| Evogene Investor Contact: | US Investor Relations: |
|---|---|
| Aviva Banczewski / Rivka Neufeld<br><br> <br>Investor Relations and Public Relations Manager<br><br> <br>E: IR@evogene.com<br><br> <br>T: +972-8-931-1900 | Joseph Green<br><br> <br>Edison Group<br><br> <br>E: jgreen@edisongroup.com<br><br> <br>T: +1 646-653-7030 |
| Laine Yonker<br><br> <br>Edison Group<br><br> <br>E: lyonker@edisongroup.com<br><br> <br>T: +1 646-653-7035 |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
U.S. dollars in thousands (except share and per share data)
| December 31, | December 31, | |||||
|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||
| (Unaudited) | (Audited) | |||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 46,229 | $ | 34,748 | ||
| Marketable securities | - | 2,128 | ||||
| Short-term bank deposits | 2,000 | 10,000 | ||||
| Trade receivables | 222 | 72 | ||||
| Other receivables and prepaid expenses | 3,372 | 2,079 | ||||
| 51,823 | 49,027 | |||||
| LONG-TERM ASSETS: | ||||||
| Long-term deposits | 9 | 9 | ||||
| Operating lease right-of-use-assets | 1,872 | 2,671 | ||||
| Property, plant and equipment, net | 2,072 | 2,583 | ||||
| Intangible assets, net | 16,139 | 17,074 | ||||
| 20,092 | 22,337 | |||||
| $ | 71,915 | $ | 71,364 | |||
| CURRENT LIABILITIES: | ||||||
| Trade payables | $ | 863 | $ | 1,001 | ||
| Employees and payroll accruals | 2,535 | 2,079 | ||||
| Operating lease liability | 777 | 895 | ||||
| Liabilities in respect of government grants | 72 | 37 | ||||
| Pre-funded warrants | 4,144 | - | ||||
| Deferred revenues and other advances | 47 | 386 | ||||
| Other payables | 1,238 | 1,348 | ||||
| 9,676 | 5,746 | |||||
| LONG-TERM LIABILITIES: | ||||||
| Operating lease liability | 1,663 | 2,076 | ||||
| Liabilities in respect of government grants | 3,694 | 3,325 | ||||
| 5,357 | 5,401 | |||||
| SHAREHOLDERS' EQUITY: | ||||||
| Ordinary shares of NIS 0.02 par value:<br><br> <br>Authorized - 150,000,000 ordinary shares; Issued and outstanding - 35,600,088 shares on December 31, 2020 and 25,754,297 shares on December 31,<br> 2019 | 200 | 142 | ||||
| Share premium and other capital reserve | 225,121 | 205,904 | ||||
| Accumulated deficit | (179,276 | ) | (155,902 | ) | ||
| Equity attributable to equity holders of the Company | 46,045 | 50,144 | ||||
| Non-controlling interests | 10,837 | 10,073 | ||||
| Total equity | 56,882 | 60,217 | ||||
| $ | 71,915 | $ | 71,364 |
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
U.S. dollars in thousands (except share and per share data)
| Year ended<br><br> <br>December 31, | Three months ended<br><br> <br>December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||||||
| (Unaudited) | (Audited) | (Unaudited) | ||||||||||
| Revenues | $ | 1,040 | $ | 753 | $ | 351 | $ | 116 | ||||
| Cost of revenues | 574 | 334 | 346 | 81 | ||||||||
| Gross profit | 466 | 419 | 5 | 35 | ||||||||
| Operating expenses: | ||||||||||||
| Research and development, net | 17,287 | 15,791 | 4,811 | 5,164 | ||||||||
| Business development | 2,672 | 2,029 | 670 | 609 | ||||||||
| General and administrative | 5,321 | 3,765 | 1,701 | 1,143 | ||||||||
| Total operating expenses | 25,280 | 21,585 | 7,182 | 6,916 | ||||||||
| Operating loss | (24,814 | ) | (21,166 | ) | (7,177 | ) | (6,881 | ) | ||||
| Financing income | 1,591 | 2,630 | 733 | 499 | ||||||||
| Financing expenses | (2,951 | ) | (555 | ) | (2,294 | ) | (286 | ) | ||||
| Financing income (expenses), net | (1,360 | ) | 2,075 | (1,561 | ) | 213 | ||||||
| Loss before taxes on income | (26,174 | ) | (19,091 | ) | (8,738 | ) | (6,668 | ) | ||||
| Taxes on income | 32 | 24 | 25 | 24 | ||||||||
| Loss | $ | (26,206 | ) | $ | (19,115 | ) | $ | (8,763 | ) | $ | (6,692 | ) |
| Attributable to: | ||||||||||||
| Equity holders of the Company | (23,374 | ) | (18,112 | ) | (8,122 | ) | (6,078 | ) | ||||
| Non-controlling interests | (2,832 | ) | (1,003 | ) | (641 | ) | (614 | ) | ||||
| $ | (26,206 | ) | $ | (19,115 | ) | $ | (8,763 | ) | $ | (6,692 | ) | |
| Basic and diluted loss per share, attributable to equity holders of the Company | $ | (0.83 | ) | $ | (0.70 | ) | $ | (0.25 | ) | $ | (0.24 | ) |
| Weighted average number of shares used in computing basic and diluted loss per share | 28,158,779 | 25,754,297 | 34,111,012 | 25,754,297 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
| Year ended<br><br> <br>December 31, | Three months ended<br><br> <br>December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||||||
| (Unaudited) | (Audited) | (Unaudited) | ||||||||||
| Cash flows from operating activities | ||||||||||||
| Loss | $ | (26,206 | ) | $ | (19,115 | ) | $ | (8,763 | ) | $ | (6,692 | ) |
| Adjustments to reconcile loss to net cash used in operating activities: | ||||||||||||
| Adjustments to the profit or loss items: | ||||||||||||
| Depreciation | 1,792 | 2,395 | 392 | 489 | ||||||||
| Amortization of Intangible assets | 935 | 374 | 236 | 180 | ||||||||
| Share-based compensation | 4,097 | 1,578 | 617 | 776 | ||||||||
| Pre-funded warrants issuance expenses | 211 | - | 211 | - | ||||||||
| Net financing expenses (income) | 1,031 | (2,414 | ) | 1,251 | 232 | |||||||
| Loss from sale of property, plant & equipment | - | 12 | - | - | ||||||||
| Taxes on income | 13 | 24 | 6 | 24 | ||||||||
| 8,079 | 1,969 | 2,713 | 1,701 | |||||||||
| Changes in asset and liability items: | ||||||||||||
| Decrease (increase) in trade receivables | (150 | ) | 88 | (188 | ) | 75 | ||||||
| Increase in other receivables | (1,300 | ) | (1,250 | ) | (1,441 | ) | (650 | ) | ||||
| Increase in long-term deposits | - | (10 | ) | - | (10 | ) | ||||||
| Increase (decrease) in trade payables | (29 | ) | (122 | ) | 122 | 68 | ||||||
| Increase (decrease) in employees and payroll accruals | 456 | (33 | ) | 805 | 217 | |||||||
| Increase (decrease) in other payables | (68 | ) | 375 | 25 | 378 | |||||||
| Increase (decrease) in deferred revenues and other advances | (339 | ) | (45 | ) | (85 | ) | 268 | |||||
| (1,430 | ) | (997 | ) | (762 | ) | 346 | ||||||
| Cash received (paid) during the period for: | ||||||||||||
| Interest received | 294 | 803 | 3 | 111 | ||||||||
| Interest paid | (238 | ) | (302 | ) | (56 | ) | (78 | ) | ||||
| Taxes paid | (13 | ) | (24 | ) | (6 | ) | (24 | ) | ||||
| Net cash used in operating activities | $ | (19,514 | ) | $ | (17,666 | ) | $ | (6,871 | ) | $ | (4,636 | ) |
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
| Year ended<br><br> <br>December 31, | Three months ended<br><br> <br>December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||||||
| (Unaudited) | (Audited) | (Unaudited) | ||||||||||
| Cash flows from investing activities | ||||||||||||
| Purchase of property, plant and equipment | $ | (682 | ) | $ | (900 | ) | $ | (103 | ) | $ | (382 | ) |
| Proceeds from sale of marketable securities | 2,097 | 27,084 | - | 4,257 | ||||||||
| Purchase of marketable securities | - | (1,637 | ) | - | - | |||||||
| Proceeds from bank deposits | 8,000 | 12,592 | - | 19,267 | ||||||||
| Net cash provided by (used in) investing activities | 9,415 | 37,139 | (103 | ) | 23,142 | |||||||
| Cash flows from financing activities | ||||||||||||
| Issuance of ordinary shares | 18,658 | - | 8,857 | - | ||||||||
| Issuance of pre-funded warrants | 1,989 | - | 1,989 | - | ||||||||
| Issuance of subsidiary ordinary shares | - | 10,000 | - | - | ||||||||
| Proceeds from advances for pre-funded warrants | 9 | - | 9 | - | ||||||||
| Proceeds from exercise of options | 59 | - | 46 | - | ||||||||
| Repayment of operating lease liability | (639 | ) | (597 | ) | (155 | ) | (87 | ) | ||||
| Proceeds from government grants | 320 | 493 | - | 87 | ||||||||
| Repayment of government grants | (22 | ) | (590 | ) | - | (4 | ) | |||||
| Net cash provided by (used in) financing activities | 20,374 | 9,306 | 10,746 | (4 | ) | |||||||
| Exchange rate differences - cash and cash equivalent balances | 1,206 | 159 | 963 | (221 | ) | |||||||
| Increase in cash and cash equivalents | 11,481 | 28,938 | 4,735 | 18,281 | ||||||||
| Cash and cash equivalents, beginning of the period | 34,748 | 5,810 | 41,494 | 16,467 | ||||||||
| Cash and cash equivalents, end of the period | $ | 46,229 | $ | 34,748 | $ | 46,229 | $ | 34,748 | ||||
| Significant non-cash activities | ||||||||||||
| Acquisition of property, plant and equipment | $ | 57 | $ | 216 | $ | 57 | $ | 216 | ||||
| Increase (decrease) of operating lease right-of-use-assets | $ | (41 | ) | $ | 3,437 | $ | (18 | ) | $ | 88 | ||
| Acquisition of intangible assets | $ | - | $ | 17,448 | $ | - | $ | - |
Exhibit 99.1
INVESTORpresentation March 2021 Ofer Haviv, President & CEO
Forward Looking Statement This presentation contains "forward-looking statements" relating to future events, and we may from time to time make other statements, regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting Evogene Ltd. or its subsidiaries (collectively, “Evogene” or “we”), that are considered “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995 (the “PSLRA”) and other securities laws. Such forward-looking statements may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “intend” and “potential” or words of similar meaning. For example, Evogene is using forward-looking statements in this presentation when it discusses its near-term value drivers, including statements to the effect that it will reach commercialization, regulatory approval or enter into collaboration agreements; its milestones for each of 2021 and 2022; the evaluation of the initiation of discovery and development of new life-science based products in various new fields of activity; its belief that its diverse portfolio mitigates the risk associated with each individual opportunity within its portfolio and in its product pipeline; and its estimated cash usage for its year ending December 31, 2020. For these statements, Evogene claims the protection of the safe harbor for forward-looking statements contained in the PSLRA and other securities laws. 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, and trends in the future of Evogene 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 Evogene's control, including, without limitation, the global spread of COVID-19, or the Coronavirus, the various restrictions deriving therefrom, the extent of Evogene continuing to maintain its holdings in its subsidiary companies, whether Evogene is able to comply with regulatory requirements, the degree of Evogene’s success at adapting to the continuous technological changes in its industries, and those factors and risks described in greater detail in Evogene’s Annual Report on Form 20-F and in other reports it files and furnishes with the U.S. Securities and Exchange Commission (the ”SEC”) and the Israel Securities Authority from time to time. In addition, Evogene relies, and expects to continue to rely, on third parties to conduct certain activities, such as its 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 (including as a result of the effect of the Coronavirus), Evogene may experience significant delays in the conduct of its activities. All written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. Except for any obligations to disclose information as required by applicable securities laws, Evogene disclaims any obligation or commitment to update any information contained in this presentation or to publicly release the results of any revisions to any statements that may be made to reflect future events or developments or changes in expectations, estimates, projections and assumptions.The information contained herein does not constitute a prospectus or other offering document, nor does it constitute or form part of any invitation or offer to sell, or any solicitation of any invitation or offer to purchase or subscribe for, any securities of Evogene or any other entity, nor shall the information or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any action, contract, commitment or relating thereto or to the securities of Evogene.The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of Evogene. 2
Agenda IntroductionFields of activityMain subsidiariesSummary 3 Annex I - Addressing the discovery and development challenges of life science-based productAnnex II - Financial Fundamentals
Our Vision 4 DECODING BIOLOGY Revolutionizing life-science based product discovery & development, utilizing cutting edge computational biology technologies.
Ag-chemicalsIndustry Life-science product discovery & development challenges Low probability of success with high cost and long time-to-market 5 Pharmaceutical Industry Discovery anddevelopment costsof a new cropprotection product Time to developa new cropprotection product 1995 2000 2005-8 2010-15 Number of years between the firstsynthesis and first sale of product 8.3 9.1 9.8 11.3 CDER’S* annual noveldrug approvals:2010-2019 Worldwide totalpharmaceutical R&Dspend in 2010-2024 Source: Phillips McDougall, 2016 Source: Phillips McDougall, 2016 Source: U.S. Food and Drug Administration Source: Evaluate Pharma May 2019 *Center for Drug Evaluation and Research
The opportunity Utilize comprehensive and integrated computational biology to substantially increase the probability of success, while reducing the time and cost of life-science product discovery & development. 6 HUMAN HEALTH Agriculture Other Industries
When biology meetsdisruptive technologies;introducing– platform 7 BIG DATA BIOLOGY AI Incorporating deep scientific understandings together with big data and advanced artificial intelligence technologies (AI), to successfully discover & guide the development of novel life-science based products. – Computational Predictive Biology Developed over two decades at an investment of tens of millions of dollars and validated through collaborations with industrial leaders & internal results
Tailor-made Engines for product discovery & development The CPB platform enhances product discovery and development through dedicated Engines for products based on three core components:MicrobesSmall molecules Genetic elements 8 MICROBES GENETIC ELEMENTS SMALL MOLECULES
Tailor-made Engines for product development 9 DiscoveryComputational selection of the most promising candidates to initiate the product development process. DevelopmentComputational driven solution addressingoptimization development challenges for the selected candidates, without impairing their ability to address other product attributes, supporting the way to successful commercialization. BIOLOGY BIG DATA AI MICROBES GENETIC ELEMENTS SMALL MOLECULES
10 Business Model 1 Product development through collaborationsJoint development with leading companies for defined products utilizing Evogene’s unique solution. Later-stage development and commercialization of the product will likely be done by the partner. Potential revenue for EvogeneLicensing and research paymentsMilestone paymentsRevenue sharing GMO seed traits for yield and abiotic stress for wheat GMO seed traits for yield and abiotic stress for cornGMO seed traits for ASR resistance for soybean GMO seed traits for nematode resistance Main Business Model Until 2014: GMO seed traits for yield and abiotic stress for corn and soybeanGMO (2013) and genome editing (2019) seed traits for fusarium resistance
Product development through subsidiariesEstablish independent entities focusing on a defined commercial field with an exclusive license to use Evogene’s unique solutions for product development. The subsidiary may develop and commercialize products independently or through strategic collaborations. Potential revenue for EvogeneLicensing and research paymentsConsolidated revenuesDividends (subject to profits generated by subsidiary) 11 Business Model 2 Microbiome based therapeutics Medical cannabis Ag-solutions for castor Ag-chemicals Ag-biologicals Main Business Model from 2015:
Agenda IntroductionFields of activityMain subsidiariesSummary 12 Annex I - Addressing the discovery and development challenges of life science-based productAnnex II - Financial Fundamentals
OTHER INDUSTRIES AGRICULTURE HUMAN HEALTH MICROBES SMALL MOLECULES GENETIC ELEMENTS 13 Potential fields of activity
14 Current life-science based products under development OTHER INDUSTRIES AGRICULTURE HUMAN HEALTH Ag-Biologicals MicrobiomebasedTherapeutics MICROBES Ag-Chemicals Drugs based on small molecules SMALL MOLECULES Ag-solutionsfor castoroil production Seed Traits MedicalCannabis GENETIC ELEMENTS
Development & commercialization through subsidiaries and collaborations 15 OTHER INDUSTRIES AGRICULTURE HUMAN HEALTH MICROBES SMALL MOLECULES GENETIC ELEMENTS Seed Traits [division] * * non-exclusive license
OTHER INDUSTRIES AGRICULTURE HUMAN HEALTH MICROBES SMALL MOLECULES GENETIC ELEMENTS 16 Evogene Group – More to Come We are now evaluating the initiation of discovery and development of new life-science based products in various new fields of activity. Drug optimization* Microbe for aquaculture* High quality food by genome editing* * under evaluation New activity
Evogene Group 17 *Evogene holdings Other Industries 100%* Castor Oil ProductionCastor seeds &growth protocol HumanHealth Microbiome basedTherapeuticsImmuno-oncologyGI- gastrointestinal- related disordersMDRO – multi-drug resistant organisms Medical CannabisHigh yield & consumer traitsTherapeutic traits – currently inflammation & pain 90%* 100%* Seed TraitsYield improvement and drought tolerancePlant diseaseInsect control Agriculture Ag ChemicalsHerbicidesInsecticidesFungicides Ag BiologicalsBio-StimulantsBio-Pesticides 98%* 72%* Internal division of Evogene
Agenda IntroductionFields of activityMain subsidiariesSummary 18 Annex I - Addressing the discovery and development challenges of life science-based productAnnex II - Financial Fundamentals
19 Immuno-oncology program:Combination therapy for cancer with checkpoint inhibitorsPre-clinical stageAddressable market size expected by 2026* – $243BGI related disorders:Inflammatory Bowel Disorder (IBD) – pre-clinical stageIrritable Bowel Syndrome (IBS) – discovery stageAddressable market size expected by 2026: Inflammatory Bowel Disorder $22.4B, Irritable Bowel Syndrome** $3.3BMDRO:Multi Drug Resistant Organisms (antimicrobial resistance)Clostridium Difficile Infection (CDI) – discovery stageMethicillin-resistant Staphylococcus aureus (MRSA)– discovery stageAddressable market size expected by 2026: CDI*** $1.7B, MRSA**** $3.9B Mission:Discovery and development of novel therapies for microbiome-related human disorders using computational biology. 2021Inflammatory Bowel Disease (IBD) - extend pre-clinical studyImmuno-oncology - initiate proof of concept, first in man study2022IBD - initiate first GMP production of drug candidates for IBDImmuno-oncology - readout from proof of concept, first in man study Product Pipeline: | Human Microbiome *www.globenewswire.com/news-release/2019/07/17/1884118/0/en/Cancer-Immunotherapy-Market-To-Reach-USD-242-86-Billion-By-2026-Reports-And-Data.html**www.grandviewresearch.com/industry-analysis/irritable-bowel-syndrome-ibs-treatment-market***www.globaldata.com/global-clostridium-difficile-infections-market-approach-1-7-billion-2026/****www.prnewswire.com/news-releases/global-methicillin-resistant-staphylococcus-aureus-mrsa-drugs-market-to-reach-over-us-39-billion-by-2025-upsurge-in-the-consumption-of-antibiotics-across-the-globe-to-fuel-market-growth-observes-transparency-market-research-676949593.html Expected
main near-term value drivers:
20 Example Results: Improved antitumor activity in mice following the administration of BMC128, compared to treatment with immunotherapy alone Immuno-Oncology program – BMC128 potentiate the effect of anti-PD-1 therapy (immunotherapy) in-vivo | Human Microbiome
21 MetaYield Products:Stable enhancement of total plant compounds:Increased compounds per plantIncreased compounds per areaTotal Cannabis market size expected by 2024 – $42.7B* Precise Products:Stable enhancement of specific active compounds for pain and inflammation: Medical indication focusCompound profile focusMedical Cannabis market size expected by 2024 – $25.6B* Mission:Commercialize precise & stable medical cannabis products for better therapeutic effects using computational biology. 2021MetaYield - reach 1st commercial variety; sign distribution agreements in anticipation for commercialization in 2022Precise - identify specific lines that exhibit distinct effect in model systems for reducing pain or inflammation2022MetaYield - commercial launch and initial sales of first product in IsraelPrecise - reach 1st commercial variety for reducing pain or inflammation as preparation for commercial launch in 2023 Product Pipeline: | Medical Cannabis *Source: Arcview Market research/BDS Analytics 2020 Expected main near-term value drivers:
22 Example Results: Medical Cannabis aiming at high THC, high yield, big inflorescence and dense trichomes MetaYield products under development – increased compounds per area, addressing the T20/C4 (THC 16%-24% and CBD 0%-7%) market segment, which currently consists of 70% of the Israeli medical cannabis market | Medical Cannabis
23 Herbicides:Novel MoA (Mode-of-Action) selective/non-selective herbicidesRelevant target crops – Cereals, Rice, Corn, Soybean, Cotton, Canola, Sugar beet, Other TBDAddressable market size expected by 2022*: $34BLead stage Insecticides:Novel SoA (Site-of-Action)Addressable market size expected by 2022*: $17BHit-to-Lead stage Mission:Design of next-generation effective, sustainable and safer crop protection products by leveraging computational biology and chemistry. 2021New MoA Herbicide - reach a herbicide tolerance trait POC for a ‘Lead’ herbicide under developmentNew MoA Herbicide/SoA Insecticide - sign a licensing agreement for a leading candidate2022New MoA Herbicide - sign a strategic agreement for the development of an ‘Optimized Lead’ compoundNew MoA Herbicide - reach an ‘Optimized Lead’ phase in the herbicide program Product Pipeline: | Ag-Chemicals *https://www.prnewswire.com/news-releases/global-3410-billion-herbicide-market-2022---research-and-markets-300458389.html Expected main near-term value drivers:
24 Example Results: Field test of APH1 against a panel of grass and broadleaf weeds – untreated control vs APH1 Leading novel MoA herbicide candidate – displaying efficacy in eradicating multiple important weed species in field tests | Ag-Chemicals (weed)
25 | Ag-Biologicals Bio-stimulants (live microbials for yield improvement):Spring wheat – seed treatment/soil application – development stage 2Corn – seed treatment – pre-development stageAddressable market size*: corn – 120M acres, spring wheat – 25M acresBio-pesticides (live microbials for pest protection):Mildew, fruit rot for fruit and vegetables (initial focus on grapes) – foliar application – development stage 1Seedling disease for corn, soy – seed treatment for disease protection – pre-development stageBio-insecticides – initial focus corn (seed treatment), soy (foliar) – pre-development stageAddressable market size*: mildew, fruit rot – $550M, seedling diseases – $500M, bio-insecticides – $1.5B. Mission:Improve food quality, sustainability and agricultural productivity through the introduction of microbiome based ag-biological products using computational biology. 2021Bunch rot bio-fungicide - complete LAV311/312 development towards regulationBio-stimulant - conduct pre-commercial trials for LAV211 in spring wheat 2022Bio-stimulant - initial product sales of LAV211 for spring wheatBunch rot bio-fungicide - file for regulatory approval for leading product candidate LAV311/LAV312 Product Pipeline: *Company estimation Expected main near-term value drivers:
26 | Ag-Biologicals Example of treatment with LAV312 against Botrytis Cinerea in vines – untreated control vs treated vines Lavie Bio’s wheat field in the USA during harvest
Subsidiaries - expected main near-term value drivers 2021 2022 Inflammatory Bowel Disease (IBD) - extend pre-clinical study Immuno-oncology - initiate proof of concept, first in man study IBD - initiate first GMP production of drug candidates for IBD Immuno-oncology - readout from proof of concept, first in man study MetaYield - reach 1st commercial variety; sign distribution agreements in anticipation for commercialization in 2022 Precise - identify specific lines that exhibit distinct effect in model systems for reducing pain or inflammation MetaYield - commercial launch and initial sales of first product in Israel Precise - reach 1st commercial variety for reducing pain or inflammation as preparation for commercial launch in 2023 New MoA Herbicide - reach a herbicide tolerance trait POC for a ‘Lead’ herbicide under development New MoA Herbicide/SoA Insecticide - sign a licensing agreement for a leading candidate New MoA Herbicide - sign a strategic agreement for the development of an ‘Optimized Lead’ compound New MoA Herbicide - reach an ‘Optimized Lead’ phase in the herbicide program Bunch rot bio -fungicide - complete LAV311/312 development towards regulation Bio-stimulant - conduct pre-commercial trials for LAV211 in spring wheat Bio-stimulant - initial product sales of LAV211 for spring wheat Bunch rot bio-fungicide - file for regulatory approval for leading product candidate LAV311/LAV312 27 Collaboration Regulation Pipeline Product Launch
Agenda IntroductionFields of activityMain subsidiariesSummary 28 Annex I - Addressing the discovery and development challenges of life science-based productAnnex II - Financial Fundamentals
29 Summary Our vision - Revolutionizing life-science based product discovery & development, utilizing cutting edge computational biology technologies. CPB platform - a unique technology platform stemming from the incorporation of deep scientific understandings of biology together with big-data and artificial intelligence technologies The CPB’s three unique engines target to improve the development of products based on the following core components:MicroBoost AI – for products based on microbesChemPass AI – for products based on small moleculesGeneRator AI – for products based on genetic elements Four main market-oriented subsidiaries, each with a clear milestone roadmap: Biomica – human-microbiome based therapeuticsCanonic – medical cannabisAgPlenus – ag-chemicalsLavie Bio – ag-biologicals Dual based business model - utilizing Evogene’s solutions for:Product development & commercialization through collaborationsProduct development & commercialization through subsidiaries Significant catalysts expected in the next 12 months towards 2022 product commercialization & strategic collaborations
THANK You!
Annex I:Addressing the discovery and development challenges of life science-based product 31
32 Efficacy Safety Selectivity Shelf-life Other ProductLaunch Candidate Selection ProductDefinition Discovery Development The challenge in creatinglife-science based products
33 Candidate Selection ProductDefinition Common practiceDiscovery – selection of product candidates mainly addressing efficacy The challenge in creatinglife-science based products Efficacy Safety Selectivity Shelf-life Other ProductLaunch
34 Candidate Selection ProductDefinition Low probability of successLong time to marketHigh development costs Development – inefficient optimization & difficulty in addressing a single challenge without impairing others The challenge in creatinglife-science based products Efficacy Safety Selectivity Shelf-life Other ProductLaunch Common practiceDiscovery – selection of product candidates mainly addressing efficacy
Evogene’s AI-based solution:Discovery 35 Candidate Selection ProductDefinition A multi-attribute computational selection of product candidates, addressing relevant challenges using dedicated training data sets and AI. Efficacy Safety Selectivity Shelf-life Other ProductLaunch
Evogene’s AI-based solution:Development 36 Candidate Selection ProductDefinition A multi-attribute computational analysis, addressing a specific development challenge of the selected candidate, without impairing its ability to address other product attributes. Efficacy Safety Selectivity Shelf-life Other ProductLaunch
37 Evogene’s AI engines provide tailor-made solutions Development Computational driven solution for guiding and assessing the optimization process of the selected core component, without impairing other key product attributes. DiscoveryComputational prediction of candidates, to serve as the product’s core-component, addressing multiple key product attributes.
Annex II:Financial Fundamentals 38
Key Financials:Balance Sheet Key Points:Consolidated cash position: ~$48.2 million as of 31.12.2020, ~$13 million appropriated to Lavie BioNo bank debtEstimated net cash usage for 2021, excluding Lavie Bio: $20-$22 millionListed on TASE (2007) and NASDAQ (2013) 1 Thousands of US $ 31.12.2020 31.12.2019 Current Assets 51,823 49,027 Long-Term Assets 20,092 22,337 Total Assets 71,915 71,364 Current Liabilities 9,676 5,746 Long-Term Liabilities 5,357 5,401 Equity attributable to equity holders of the Company 46,045 50,144 Non-controlling interest 10,837 10,073 Total Liabilities & Shareholders Equity 71,915 71,364 1