Kadimastem pencils strategic collaboration with Korean biotech firm

Israeli biotechnology company Kadimastem (TASE: KDST) has signed a memorandum of understanding with South Korean company Corestem, for a broad strategic collaboration between the companies.

The synergy between the companies will assist in expediting Kadimastem's entry into international markets and positioning the Kadimastem-Corestem collaboration as a worldwide leader in innovative treatment for severe diseases in general and amyotrophic lateral sclerosis (ALS) and diabetes in particular.

On signing the final agreement, Corestem will invest $7 million in Kadimastem. The parties have agreed that the share price for the investment will be determined at the time of the signing of the agreement, according to the average share price during the period between the signing of the MoU and the signing of the final agreement, it being agreed that the share price will reflect a pre-market company valuation not lower than $30 million and not higher than $37 million. Moreover, Kadimastem will become a shareholder of Corestem by investing $1 million in a similar investment mechanism.