XTL Biopharmaceuticals Ltd. (NASDAQ: XTLB) (TASE: XTL) ("XTL" or the "Company"), a clinical-stage biopharmaceutical company focused on the acquisition, development and commercialization of pharmaceutical products for the treatment of unmet clinical needs, announced today that Israeli biotech investor Alex Rabinovich, its largest shareholder, increased his stake in the Company through his investment in InterCure, an XTL subsidiary, and recent purchases of XTL stock in the market.
Mr. Rabinovich will acquire a 51% stake in InterCure in two phases for a total investment of $460,000. In the transaction announced by InterCure, Mr. Rabinovich will be granted options to increase his stake in InterCure in addition to the right to purchase the XTL shares held by InterCure. The exercise of the option to purchase the XTL shares when combined with Mr. Rabinovich's recent purchase of approximately 3.4 million XTL shares in the open market will increase Mr. Rabinovich's total ownership in XTL to 20.5%.
XTL's ownership position in InterCure will be reduced to 20.4% following completion of the transaction and the exercise of the options. As a minority shareholder, XTL will not be required to consolidate InterCure's financial results in its financial statements according to U.S. Generally Accepted Accounting Principles (GAAP). As a result, XTL's financials will represent a more accurate picture of its financial health and clinical operations.
InterCure also recently announced the signing of a memorandum of understanding to acquire a stake in Regenera Pharma Ltd., a clinical-stage pharmaceutical company whose drug RPh201 has demonstrated the ability to reverse neurological damage caused by pathological conditions.
The planned investment in Regenera, a company led by Prof. Yitzhak Peterburg, who also serves as Chairman of the Board of Teva Pharmaceuticals Industries Ltd., coupled with Mr. Rabinovich's intention to inject additional funds into InterCure lays the foundation for success.
"Mr. Rabinovich's recent purchase of XTL shares in the market and his investment in InterCure is a resounding vote of confidence from our largest shareholder," stated Josh Levine, CEO of XTL. "Mr. Rabinovich has demonstrated significant knowledge of the biotech space and we believe his involvement will drive value to our investment in the near term. As we have previously mentioned, InterCure was not a critical aspect of our business strategy in the biotechnology space but we believe this transaction adds value to our investment while also allowing us to dedicate our attention and resources to the development of our Lupus and Multiple Myeloma assets."
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