Calyxt Reports Financial Results for Second Quarter and Half-Year 2018
As of June 30th, successfully contracted over 17,000 high-oleic / no trans-fat soybean acres with 78 growers.
~20 small to large food company customers engaged across food services and food ingredient applications
Calyxt’s high-fiber wheat & improved quality alfalfa transitioned to phase II
Advanced two product candidates from ‘discovery’ to ‘phase 1’ development
Completed move to new concept-to-fork facility in Roseville, Minn.
Successful follow-on offering increases cash position to over $105M
MINNEAPOLIS & ST. PAUL, Minn.--(BUSINESS WIRE)--August 1, 2018--Calyxt, Inc. (NASDAQ:CLXT), a consumer-centric, food- and agriculture-focused company, today announced its results for the three-month period and the first half period ended June 30, 2018.
The first half of 2018 saw significant growth of the Company’s lead product candidate, a non-GMO, high-oleic soybean variety, designed to yield soybean oil with over 80% oleic oil content that is completely trans fat free. With over 17,000 acres planted, Calyxt surpassed its initial goal of 12,000 acres, with over 90% of existing farmers re-planting. With the commercial launch of this product in the US later this year, Calyxt is well positioned within the industry, following the FDA ban on all trans fats in the U.S. going into effect in 2018. Calyxt also welcomes the recently unveiled World Health Organization’s plan to remove all trans fats worldwide from the food chain by 2023.
The recent move into its new state-of-the-art, farm-to-kitchen facility enables Calyxt to accelerate and expand its product pipeline, with a continued focus on a variety of pressing health- and agronomic needs.
High-Oleic Soybean Update:
Regulatory & IP:
Completion of New Facility:
Cash and cash equivalents were $105.6 million at June 30, 2018. We intend to continue to judiciously manage the use of cash and expect to have sufficient cash to fund the business until late 2020. Cellectis remains our majority shareholder with 70.24% of our common stock as of June 30, 2018.
Pursuant to the follow-on offering, in aggregate, the Company received net proceeds of approximately $57.0 million, after deducting underwriting discounts and commissions of $3.2 million and offering expenses totaling approximately $0.7 million. As part of the follow-on offering, Cellectis purchased 550,000 shares of common stock for a value of $8.3 million, the proceeds of which are included in the net proceeds of approximately $57.0 million.
For the three months ended June 30, 2018, we incurred losses from operations of $7.6 million and used net cash in operating activities of $2.3 million. For the six months ended June 30, 2018, we incurred losses from operations of $11.9 million and used net cash in operating activities of $8.8 million. The first semester cash spend includes spending on high-oleic soybean seed production to support our Spring 2018 planting of high-oleic soybeans.
Looking forward for the rest of 2018, we anticipate that our operating cash spend will be in the range of $2.0 to $2.2 million per month excluding working capital for grain purchases in the later part of 2018. Cash will be used to expand our R&D team to advance key products in the portfolio and continue to build our commercial capabilities.
Condensed Balance Sheets
(Amounts in Thousands, Except Share Data and Per Share Data)
|Cash and cash equivalents||$||105,620||$||56,664|
|Trade accounts receivable||—||—|
|Due from related parties||102||167|
|Prepaid expenses and other current assets||1,475||626|
|Total current assets||107,197||57,457|
|Property and equipment, net||21,337||14,353|
|Other long-term assets||307||357|
|Liabilities and stockholders’ equity|
|Due to related parties||$||1,337||$||1,350|
|Accrued salaries, wages, and other compensation||627||945|
|Current deferred revenue||9||43|
|Total current liabilities||5,042||4,254|
|Non-current deferred revenue||116||289|
|Finance lease obligations and other long term liabilities||17,444||10,148|
|Common stock, $0.0001 par value; 275,000,000 shares authorized, 32,336,106· and 27,718,780 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively||3||3|
Preferred stock, $0.0001 par value; 50,000,000 shares authorized, no
issued or outstanding as of June 30, 2018 and December 31, 2017, respectively
|Additional paid-in capital||172,730||112,021|
|Total stockholders’ equity||106,239||57,476|
|Total liabilities and stockholders’ equity||$||128,841||$||72,167|
Condensed Statements of Operations
(Amounts in Thousands except Shares Outstanding and Per Share Amounts)
Three Months Ended
Six Months Ended
|Cost of revenue||—||—||—||—|
|Research and development||3,093||1,453||4,186||2,719|
|Selling, general, and administrative||4,595||2,010||7,809||3,588|
|Total operating expenses||7,688||3,463||11,995||6,307|
|Loss from operations||(7,492||)||(3,240||)||(11,788||)||(6,029||)|
|Interest expense, net||(72||)||(30||)||(140||)||(44||)|
|Foreign currency transaction loss||(12||)||(125||)||(18||)||(154||)|
|Loss before income taxes||(7,576||)||(3,395||)||(11,946||)||(6,227||)|
|Income tax expense||—||—||—||—|
|Basic and diluted loss per share||$||(0.25||)||$||(0.17||)||$||(0.41||)||$||(0.32||)|
|Weighted average shares outstanding—basic and diluted||29,840,827||19,600,000||28,851,491||19,600,000|
Condensed Statement of Stockholders’ Equity
(Amounts in Thousands except Shares Outstanding)
|Balances at December 31, 2017||27,718,780||$||3||$||112,021||$||(54,548||)||$||57,476|
|Common shares issued upon exercise of options and other||559,826||1,241||1,241|
|Issuance of common stock||4,057,500||-||57,041||57,041|
|Balances at June 30, 2018 (unaudited)||32,336,106||$||3||$||172,730||$||(66,494||)||$||106,239|
Condensed Statements of Cash Flows
(Amounts in Thousands)
Six Months Ended
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Unrealized transaction gain (loss) on related party activity||6||(156||)|
|Changes in operating assets and liabilities:|
|Trade accounts receivable||-||110|
|Due to/from related parties||47||1,213|
|Prepaid expenses and other assets||(799||)||(448||)|
|Accrued salaries, wages, and other compensation||(318||)||10|
|Net cash used in operating activities||(8,828||)||(4,063||)|
|Purchases of property and equipment, net||(498||)||(608||)|
|Net cash used in investing activities||(498||)||(608||)|
|Advance from Parent||-||3,000|
|Costs incurred related to the issuance of stock||(665||)||(834||)|
|Proceeds from common stock issuance||57,706||-|
|Proceeds from the exercise of stock options||1,241||-|
|Net cash provided by financing activities||58,282||2,166|
|Net decrease in cash and cash equivalents||48,956||(2,505||)|
|Cash and cash equivalents—beginning of period||56,664||5,026|
|Cash and cash equivalents—end of period||$||105,620||$||2,521|
|Supplemental cash flow information|
|Supplemental non-cash investing and financing transactions:|
|Property and equipment included in financing lease obligation||$||7,096||$||-|
|Offering costs in accounts payable and accrued liabilities||$||445||$||1,269|
Calyxt, Inc. is a consumer-centric, food- and agriculture-focused company. Calyxt is pioneering a paradigm shift to deliver healthier food ingredients, such as healthier oils and high fiber wheat, for consumers and crop traits that benefit the environment and reduce pesticide applications, such as disease tolerance, for farmers. Calyxt develops non-transgenic crops leveraging processes that occur in nature by combining its leading gene-editing technology and technical expertise with its innovative commercial strategy. Calyxt is located in Minneapolis-St. Paul, MN, and is listed on the Nasdaq market (ticker: CLXT).
For further information please visit our website: www.calyxt.com
Calyxt™ and the corporate logo are trademarks owned by Calyxt, Inc.
TALEN® is a registered trademark owned by the Cellectis S.A.
Calyxt Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including those factors discussed under the caption entitled “Risk Factors” in our Annual Report on Form 10-K, along with our other filings with the U.S. Securities and Exchange Commission. We do not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by applicable laws.
Jennifer Moore, 917-580-1088
KCSA Strategic Communications
Caitlin Kasunich, 212-896-1241
Nick Opich, 212-896-1206
Simon Harnest, 646-385-9008
VP Corporate Strategy and Finance