Kadimastem Shareholders Approve Merger with NLS Pharmaceutics: A New Era in Biotechnology

In a significant development for the biotechnology sector, Kadimastem shareholders have approved the merger with NLS Pharmaceutics, paving the way for the creation of a Nasdaq-traded biotechnology company with a robust portfolio of advanced therapies for neurodegenerative diseases and diabetes. This strategic move, announced on January 31, 2025, brings together two innovative companies with complementary strengths and a shared commitment to addressing unmet medical needs.

Kadimastem, a clinical-stage cell therapy company, is developing "off-the-shelf," allogeneic, proprietary cell products based on its technology platform for the expansion and differentiation of Human Embryonic Stem Cells (hESCs) into functional cells. Its lead product, AstroRx®, is an astrocyte cell therapy in clinical development for the treatment of ALS, while IsletRx is a treatment for diabetes comprised of functional pancreatic islet cells producing and releasing insulin and glucagon.

NLS Pharmaceutics, a Swiss clinical-stage biopharmaceutical company, is focused on the discovery and development of innovative therapies for rare and complex central nervous system disorders. Its proprietary Dual Orexin Agonist platform (DOXA) is in advanced clinical development, targeting central nervous system disorders with high unmet medical needs.



The merger, expected to close in January 2025, subject to customary closing conditions and approval from NLS' and Kadimastem's shareholders, will create a combined company with a strong financial position and access to U.S. capital markets. The combined company will have access to a broader range of product candidates, enabling it to address a wider range of unmet medical needs and potentially increase its market reach and growth opportunities.

Ronen Twito, Executive Chairman and Chief Executive Officer of Kadimastem, stated, "We are happy that our shareholders have approved this significant Merger with NLS. We believe that this approval shows the shareholders' appreciation of the anticipated value creation from the Merger to leverage NLS's and Kadimastem's combined strengths in biotechnology. We look forward to completing the Merger and unlocking new opportunities for growth and innovation."

Alex Zwyer, Chief Executive Officer of NLS, commented, "Receiving approval from Kadimastem's shareholders is a significant step forward in the Merger process. We look forward to the potential benefits of bringing our two companies together and are committed to working collaboratively to advance innovative solutions in biotechnology. We aim to convene our shareholders meeting in the coming weeks to support a smooth transition toward this partnership."

As the Merger process progresses, both companies remain focused on aligning their efforts to become a leading force in developing therapies that address critical health challenges. The combined company's strategic positioning in the biotechnology sector, driven by the synergies between Kadimastem's allogeneic cell therapy platform and NLS Pharmaceutics' Dual Orexin Agonist platform, is poised to drive long-term growth and create value for shareholders.

In conclusion, the approval of the merger by Kadimastem shareholders marks a significant milestone in the creation of a powerful force in the biotechnology sector. The combined company's robust portfolio of advanced therapies, access to U.S. capital markets, and strategic positioning in the sector set the stage for a new era in biotechnology, with the potential to address unmet medical needs and create value for shareholders.