Kadimastem Renews Push for Nasdaq Listing

Kadimastem is getting a second chance for Nasdaq, after failing last year. The shareholders of cell therapy developer Kadimastem have approved the merger with NLS Pharmaceutics, a biotech that went public in 2021, potentially paving the path for its much-awaited listing in the exchange.

Israel-based Kadimastem develops off-the-shelf cell therapy treatments, with its lead candidate targeting amyotrophic lateral sclerosis, also known as ALS. Kadimastem almost had a non-binding agreement to merge with IM Cannabis almost a year ago, securing it on Nasdaq. That deal was aborted after the planned legalization of cannabis in Germany meant that IM Cannabis backed out of the deal.

Come July, Kadimastem had another path forward when it inked a binding term sheet with NLS. In 2023, NLS slashed it's headcount by 50% and began looking for strategic alternatives. Kadimastem saw NLS as an opportunity to get its stock listed on Nasdaq.

The scheme was approved by Kadimastem's shareholders this week, and NLS is expected to convene in the coming weeks to seek the final approval of its own investors.

Under the deal, Kadimastem would reach U.S. public markets and the much-needed cash to support its pipeline of cell therapies. The financial hurdle is not very high; the completion needs only $600,000 from NLS and $3.5 million from Kadimastem. Once the deal is closed, the Israeli biotech intends to start an ALS candidate Phase 2a U.S. trial.

So far, Kadimastem's cell therapy has given promising results in early testing. It treated 10 ALS patients before COVID-19 forced a halt in a Phase 1/2a trial. The treatments seemed to slow disease progression at three months using the ALS Functional Rating Scale-Revised (ALSFRS-R). By the six- and twelve-month follow-ups, the rates of patients' deterioration were back to the pre-treatment levels.