Two gene editing pioneers closed merger to create a leading agricultural gene editing company with an expanded portfolio of patents, patents pending, and exclusive licenses to core technologies for gene editing of plants.
Important greenhouse data continues to show promising results for Cibus’ first disease resistance trait for Sclerotinia resistance.
Begins commercialization process for its three developed traits with initial transfers to customers: pod shatter reduction in canola and HT1 and HT3 in rice.
Opens first stand-alone high-throughput (gene editing) breeding facility for trait production to support the commercial launch of its first three developed traits across canola, winter oilseed rape, and rice, and the development of its advanced traits.
The
Signs collaboration agreement with Bayer Ag to evaluate Cibus’ Trait Machine™ platform and capabilities.
Management to host a conference call webcast
“Since January, when
As part of our breeding collaboration programs, Cibus is pleased to share that it has recently entered into a collaboration agreement with Bayer Ag to evaluate Cibus’ Trait Machine, its high-throughput (gene editing) breeding platform, and capabilities. Cibus will leverage its Trait Machine process anchored by its patented Rapid Trait Development System™, RTDS®, to evaluate new techniques applicable to Bayer Ag germplasm.
Stated
“The merger and the achievements of our 2023 milestones are important elements of our business plan. Together they provide critical building blocks in establishing Cibus in the trait business and in our position as a leader in high-throughput (gene editing) plant breeding. Our recent collaboration agreements, such as today’s announcement of our breeding collaboration with Bayer Ag, move us closer to establishing our vision of high-throughput plant breeding operating as a technological extension of conventional breeding programs.” Added
Major Milestones Achieved in 2023
- First transfers of Cibus' three developed traits to customers in their elite germplasm. The first trait transfer was Cibus’ pod shatter reduction trait in canola, which was transferred to Nuseed in its elite germplasm. Following that transfer, in
April 2023 , Cibus transferred its HT1 and HT3 traits in rice to Nutrien in its elite germplasm. - The opening of Cibus' 32,000 square foot Oberlin facility in
San Diego which houses its proprietary Trait Machine™ process. This is the first semi-automated, high-throughput, end-to-end, trait production system providing a time bound, predictable, and reproducible breeding system for gene editing of commercial plants. The facility provides Cibus with the gene editing production capacity to support the commercial launch of its first three developed traits across canola, winter oilseed rape, and rice. This facility will also be central to Cibus' expected soybean trait business. - In addition to its three developed traits, Cibus has three additional traits in development. Two of these traits, Sclerotinia resistance and HT2, are progressing through the greenhouse and to the field. Cibus announced that additional greenhouse test results had demonstrated successful resistance against white mold, Sclerotinia, in canola. These greenhouse tests showed both an enhanced and an additional mode of action from previously noted field trial results of the Cibus Sclerotinia resistance trait. Together, these two different modes of action provide an increased level of resistance against Sclerotinia than each alone. The Sclerotinia resistance trait is expected to enable yield improvement, cost reduction, and lower usage of fungicides.
- In
July 2023 , as part of its Farm to Fork initiative, theEuropean Union proposed new regulations for New Genomic Techniques (NGTs). Under the proposed regulations, if adopted, Cibus’ traits such as pod shatter reduction and Sclerotinia disease resistance, would be regulated as “conventional-like” (breeding). If approved by theEU Parliament and Council (Member States), this change would be a watershed moment for the trait business. It would open up the gene edited trait business to the 100 million plus acres of farmland in the EU. In addition, it would be a critical point of inflection for the progress globally to treat gene edited traits like conventional breeding.
Future 2023 Milestones
In addition to the milestones that Cibus has already accomplished this year, Cibus has several important milestones that it expects to accomplish in the second half of 2023.
- Successfully validate its Trait Machine process in a customer’s elite soybean germplasm. In addition, Cibus expects to begin editing in its soybean platform in 2023.
- Transfer up to five additional seed company partners its pod shatter reduction trait in the customers’ elite germplasm.
- Initiate field trials in the
UK for winter oilseed rape. - Release additional greenhouse and field data associated with its Sclerotinia resistance trait and its HT2 trait.
- Initiate editing for its initial mode of action for nitrogen-use efficiency in canola.
- Enter into additional breeding collaborations in
North America andSouth America for its HT1 and HT3 traits.
Second Quarter 2023 Financial Results
- Cash position: Cash and cash equivalents as of
June 30, 2023 , was$50.9 million . The Company believes cash and cash equivalents will enable Cibus to fund planned operating expenses and capital expenditure requirements into the first quarter of 2024. - Research and development (R&D) Expense: R&D expense was
$8.4 million for the quarter endedJune 30, 2023 , compared to$3.2 million in the year-ago period. The increase of$5.2 million is primarily related to increased lab supply and facility expenses, an increase in employee headcount, and an increase in stock-based compensation expense for restricted stock award grants and the acceleration of share vesting associated with stock award agreements due to the acquisition ofCibus Global, LLC . - Selling, general, and administrative (SG&A) expense: SG&A expense was
$11.1 million for the quarter endedJune 30, 2023 , compared to$3.6 million in the year-ago period. The increase of$7.5 million is primarily related to an increase in headcount, increased consulting and legal fees, and an increase in stock-based compensation expense for restricted stock award grants and the acceleration of share vesting associated with stock award agreements due to the acquisition ofCibus Global, LLC . - Non-operating income (expenses): Non-operating income was
$1.3 million for the quarter endedJune 30, 2023 , compared to$4.3 million in the year-ago period. The decrease of$3.0 million in non-operating income is due to changes in the fair value of the liability classified Class A common stock warrants. - Net loss: Net loss was
$20.5 million for the quarter endedJune 30, 2023 , compared to$2.5 million in the year-ago period. - Net loss per share of Class A common stock was
$(3.05) for the quarter endedJune 30, 2023 , compared to$(2.66) in the year-ago period.
Conference Call and Webcast Information: Cibus will host a live webcast on
About the Trait Machine Process (the Trait Machine™)
The Trait Machine is a dedicated semi-automated end-to-end process for precision gene editing that delivers trait products that integrate into our seed company customers' breeding programs. It is a process of gene editing at scale and speed that uses the world’s best crop genetics (a seed company’s elite germplasm or seeds). The Trait Machine is based on Cibus’ proprietary Rapid Trait Development System™, RTDS®. Under the recent
Cibus believes that RTDS and the Trait Machine represents a technological breakthrough in plant breeding that is the ultimate promise of plant gene editing, a dedicated “industrial” breeding process at scale whose trait products are indistinguishable from conventional breeding or nature, and a process that provides the ability to change the scale and range of possible genetic solutions from breeding and with it, to develop the desired characteristics or traits needed for greater farming sustainability and food security with greater speed and accuracy.
Cibus’ recently opened the Oberlin Facility which is the first dedicated Trait Machine facility. It is modeled on high quality biologics manufacturing processes from the pharmaceutical industry. The Trait Machine process is crop specific. It is currently operational for canola, winter oilseed rape, and rice. Cibus plans to extend this to soybean, corn, and wheat. Cibus expects the soybean platform Trait Machine process to be operational in the second half of 2023. The promise is that, at scale and with the additional Trait Machine crop platforms, Cibus will be able to launch important multi-crop traits simultaneously across multiple crops.
About Cibus
Cibus is part of the multi-billion-dollar plant seed industry. Cibus is the leader in the new era of high-throughput gene editing technology that can develop plant traits precisely and predictably at a fraction of the time and cost of conventional breeding. Cibus is not a seed company. It is a technology company that develops and licenses traits to seed companies in exchange for royalties on seed sales. Cibus’ target market is productivity traits that improve yields, lower input costs such as chemicals, and increase the sustainability and profitability of farming. It has a pipeline of six productivity traits including important traits for pod shatter reduction, disease resistance, and nitrogen-use efficiency. Cibus’ focus is scale, multi-crop traits that can impact greater than 100 MM acres.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of applicable securities laws, including The Private Securities Litigation Reform Act of 1995. All statements, other than statements of present or historical fact included herein, including statements regarding the benefits of the Merger, Cibus’ operational and financial performance, Cibus’ strategy, future operations, prospects and plans, and the anticipated regulatory environment are forward-looking statements. Forward-looking statements may be identified by words such as “anticipate,” “believe,” “intend”, “expect,” “plan,” “scheduled,” “could,” “would” and “will,” or the negative of these and similar expressions.
These forward-looking statements are based on the current expectations and assumptions of Cibus’ management about future events, which are based on currently available information. These forward-looking statements are subject to numerous risks and uncertainties, many of which are difficult to predict and beyond the control of Cibus. Cibus’ actual results, level of activity, performance, or achievements could be materially different than those expressed, implied, or anticipated by forward-looking statements due to a variety of factors, including, but not limited to: risks associated with the possible failure to realize certain anticipated benefits of the merger between
In addition, the forward-looking statements included in this press release represent Cibus’ views as of the date hereof. Cibus specifically disclaims any obligation to update such forward-looking statements in the future, except as required under applicable law. These forward-looking statements should not be relied upon as representing Cibus’ views as of any date subsequent to the date hereof.
CIBUS CONTACTS:
INVESTOR RELATIONS
ktroeber@cibus.com
858-450-2636
MEDIA RELATIONS
tlowen@cibus.com
914-343-6794
colin@bioscribe.com
203-918-4347
CIBUS, INC. | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited and in Thousands, Except Par Value and Share Amounts) | |||||||
2023 | 2022 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 50,895 | $ | 3,427 | |||
Restricted cash | — | 99 | |||||
Accounts receivable | 858 | — | |||||
Prepaid expenses and other current assets | 3,093 | 606 | |||||
Total current assets | 54,846 | 4,132 | |||||
Property, plant, and equipment, net | 14,989 | 4,516 | |||||
Operating lease right-of-use assets | 22,550 | 13,615 | |||||
Intangible assets, net | 135,379 | 158 | |||||
585,266 | — | ||||||
Other non-current assets | 1,238 | — | |||||
Total assets | $ | 814,268 | $ | 22,421 | |||
Liabilities, redeemable noncontrolling interest, and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 3,960 | $ | 340 | |||
Accrued expenses | 5,036 | 173 | |||||
Accrued compensation | 4,378 | 107 | |||||
Due to related parties | — | 175 | |||||
Deferred revenue | 1,547 | 107 | |||||
Current portion of notes payable | 1,562 | — | |||||
Current portion of financing lease obligations | 164 | 97 | |||||
Current portion of operating lease obligations | 5,102 | 367 | |||||
Class A common stock warrants | 662 | 291 | |||||
Other current liabilities | 34 | 5 | |||||
Total current liabilities | 22,445 | 1,662 | |||||
Notes payable, net of current portion | 719 | — | |||||
Operating lease obligations, net of current portion | 18,870 | 13,447 | |||||
Royalty liability - related parties | 148,977 | — | |||||
Other non-current liabilities | 2,078 | 79 | |||||
Total liabilities | 193,089 | 15,188 | |||||
Redeemable noncontrolling interest | 136,866 | — | |||||
Stockholders’ equity: | |||||||
Class A common stock, | 8 | 5 | |||||
Class B common stock, | — | — | |||||
Additional paid-in capital | 722,327 | 220,422 | |||||
Class A common stock in treasury, at cost; 32,647 shares as of | (1,785 | ) | (1,043 | ) | |||
Accumulated deficit | (236,235 | ) | (212,151 | ) | |||
Accumulated other comprehensive loss | (2 | ) | — | ||||
Total stockholders’ equity | 484,313 | 7,233 | |||||
Total liabilities, redeemable noncontrolling interest, and stockholders' equity | $ | 814,268 | $ | 22,421 |
CIBUS, INC. | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited and in Thousands, Except Share and Per Share Amounts) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue: | |||||||||||||||
Revenue | $ | 197 | $ | 41 | $ | 239 | $ | 73 | |||||||
Total revenue | 197 | 41 | 239 | 73 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 8,429 | 3,250 | 10,638 | 6,191 | |||||||||||
Selling, general, and administrative | 11,079 | 3,556 | 13,375 | 6,736 | |||||||||||
Total operating expenses | 19,508 | 6,806 | 24,013 | 12,927 | |||||||||||
Loss from operations | (19,311 | ) | (6,765 | ) | (23,774 | ) | (12,854 | ) | |||||||
Royalty liability interest expense - related parties | (2,617 | ) | — | (2,617 | ) | — | |||||||||
Interest, net | 99 | (16 | ) | 78 | (33 | ) | |||||||||
Non-operating income (expenses) | 1,320 | 4,296 | 410 | 4,783 | |||||||||||
Loss before income taxes | (20,509 | ) | (2,485 | ) | (25,903 | ) | (8,104 | ) | |||||||
Income taxes | — | — | — | — | |||||||||||
Net loss | $ | (20,509 | ) | $ | (2,485 | ) | $ | (25,903 | ) | $ | (8,104 | ) | |||
Net loss attributable to redeemable noncontrolling interest | (1,819 | ) | — | (1,819 | ) | — | |||||||||
Net loss attributable to | $ | (18,690 | ) | $ | (2,485 | ) | $ | (24,084 | ) | $ | (8,104 | ) | |||
Basic and diluted net loss per share of Class A common stock | $ | (3.05 | ) | $ | (2.66 | ) | $ | (6.73 | ) | $ | (9.14 | ) | |||
Weighted average shares of Class A common stock outstanding – basic and diluted | 6,136,114 | 933,274 | 3,576,350 | 887,096 |
CIBUS, INC. | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited and in Thousands) | |||||||
Six Months Ended | |||||||
2023 | 2022 | ||||||
Operating activities | |||||||
Net loss | $ | (25,903 | ) | $ | (8,104 | ) | |
Adjustments to reconcile net loss to net cash used by operating activities: | |||||||
Royalty liability interest expense - related parties | 2,617 | — | |||||
Depreciation and amortization | 1,191 | 763 | |||||
Stock-based compensation | 5,842 | 1,855 | |||||
Change in fair value of liability classified Class A common stock warrants | 371 | (4,723 | ) | ||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | 1,377 | — | |||||
Due to/from related parties | (95 | ) | (71 | ) | |||
Prepaid expenses and other current assets | 47 | 5 | |||||
Accounts payable | (2,270 | ) | (114 | ) | |||
Accrued expenses | 1,296 | (87 | ) | ||||
Accrued compensation | 1,411 | (250 | ) | ||||
Deferred revenues | 251 | (74 | ) | ||||
Right-of-use assets and lease liabilities, net | 49 | 100 | |||||
Other assets and liabilities, net | (303 | ) | (576 | ) | |||
Net cash used by operating activities | (14,119 | ) | (11,276 | ) | |||
Investing activities | |||||||
Cash acquired from merger with | 59,381 | — | |||||
Purchases of property, plant, and equipment | (560 | ) | (1,289 | ) | |||
Net cash provided by (used) by investing activities | 58,821 | (1,289 | ) | ||||
Financing activities | |||||||
Proceeds from Class A common stock issuance | — | 11,209 | |||||
Costs incurred related to the issuance of Class A common stock | — | (961 | ) | ||||
Proceeds from draws on revolving line of credit from | 2,500 | — | |||||
Payment of taxes related to vested restricted stock units | (742 | ) | — | ||||
Proceeds from issuance of notes payable | 1,287 | — | |||||
Repayments of financing lease obligations | (110 | ) | (190 | ) | |||
Repayments of notes payable | (273 | ) | — | ||||
Net cash provided by financing activities | 2,662 | 10,058 | |||||
Effect of exchange rate changes on cash and cash equivalents | 5 | — | |||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 47,369 | (2,507 | ) | ||||
Cash, cash equivalents, and restricted cash – beginning of period | 3,526 | 14,421 | |||||
Cash, cash equivalents, and restricted cash – end of period | $ | 50,895 | $ | 11,914 |
Source:
2023 GlobeNewswire, Inc., source