meso-6k_20171031.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 Form 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934

For the month of November 2017

Commission File Number 001-37626

Mesoblast Limited

(Exact name of Registrant as specified in its charter)

Not Applicable

(Translation of Registrant’s name into English)

Australia
(
Jurisdiction of incorporation or organization)

 

Silviu Itescu

Chief Executive Officer and Executive Director

Level 38

55 Collins Street

Melbourne 3000

Australia

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:

Form 20-F Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes No

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes No

 


INFORMATION CONTAINED ON THIS REPORT ON FORM 6-K

On October 31, 2017, Mesoblast Limited filed with the Australian Securities Exchange a quarterly report for entities  admitted on the basis of commitments (Appendix 4C) for the quarter ended September 30, 2017, which is attached hereto as Exhibit 99.1, and is incorporated herein by reference.

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly organized.

 

 

 

 

 

 

 

 

Mesoblast Limited

 

 

 

 

 

 

/s/ Charlie Harrison

 

 

 

 

 

 

 

 

 

Charlie Harrison

 

 

 

 

Company Secretary

 

 

 

Dated: November 01, 2017


INDEX TO EXHIBITS

 

 

 

Item

 

 

 

 

 

99.1

 

Appendix 4C of Mesoblast Ltd, dated October 31, 2017.

 

 

 

 

 

meso-ex991_6.htm

Exhibit 99.1

 

Rule 4.7B

Appendix 4C

 

Quarterly report for entities subject to Listing Rule 4.7B

 

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

 

Name of entity

Mesoblast Limited

 

ABN

Quarter ended (“current quarter”)

68 109 431 870

30 September 2017

 

Consolidated statement of cash flows

 

 

 

 

 

 

Current quarter

 

 

Year to date

(3 months)

 

 

 

 

 

US$ '000

 

 

US$ '000

 

1

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

1.1

 

Receipts from customers

 

 

474

 

 

 

474

 

1.2

 

Payments for:

 

 

 

 

 

 

 

 

 

 

     (a)  research and development

 

 

(13,503

)

 

 

(13,503

)

 

 

          - research and development expenditure includes the incremental

           costs of the MPC-150-IM phase 3 program in advanced chronic heart

           failure through to and beyond the successful interim analysis announced on 10 April 2017.

 

 

 

 

 

 

 

 

 

 

     (b)  manufacturing commercialisation

 

 

(887

)

 

 

(887

)

 

 

     (c)  advertising and marketing

 

 

 

 

 

 

 

 

     (d)  leased assets

 

 

 

 

 

 

 

 

     (e)  staff costs

 

 

(3,215

)

 

 

(3,215

)

 

 

     (f)  other expenses from ordinary activities

 

 

(2,432

)

 

 

(2,432

)

 

 

     (g)  other:

 

 

 

 

 

 

 

 

 

 

          - intellectual property portfolio expenses

 

 

(855

)

 

 

(855

)

1.3

 

Dividends received (see note 3)

 

 

 

 

 

 

1.4

 

Interest received

 

 

63

 

 

 

63

 

1.5

 

Interest and other costs of finance paid

 

 

 

 

 

 

1.6

 

Income taxes paid

 

 

(1

)

 

 

(1

)

1.7

 

Government grants and tax incentives

 

 

 

 

 

 

1.8

 

Other:

 

 

 

 

 

 

 

 

          - Payments for fair value adjustments to contingent consideration

 

 

(350

)

 

 

(350

)

 

 

          - Royalties paid

 

 

(193

)

 

 

(193

)

1.9

 

Net cash from / (used in) operating activities

 

 

(20,899

)

 

 

(20,899

)

 


Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

 

 

 

 

 

 

Current quarter

 

 

Year to date

(3 months)

 

 

 

 

 

US$ '000

 

 

US$ '000

 

2

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

2.1

 

Payment to acquire:

 

 

 

 

 

 

 

 

 

 

     (a)  property, plant and equipment

 

 

(83

)

 

 

(83

)

 

 

     (b)  businesses (see item 10)

 

 

 

 

 

 

 

 

     (c)  investments

 

 

 

 

 

 

 

 

     (d)  intellectual property

 

 

 

 

 

 

 

 

     (e)  other non-current assets

 

 

 

 

 

 

2.2

 

Proceeds from disposal of:

 

 

 

 

 

 

 

 

 

 

     (a)  property, plant and equipment

 

 

 

 

 

 

 

 

     (b)  businesses (see item 10)

 

 

 

 

 

 

 

 

     (c)  investments

 

 

 

 

 

 

 

 

     (d)  intellectual property

 

 

 

 

 

 

 

 

     (e)  other non-current assets

 

 

 

 

 

 

2.3

 

Cash flows from loans to other entities

 

 

 

 

 

 

2.4

 

Dividends received (see note 3)

 

 

 

 

 

 

2.5

 

Other (provide details if material)

 

 

 

 

 

 

 

 

     (a)  Security deposits

 

 

 

 

 

 

2.6

 

Net cash from / (used in) investing activities

 

 

(83

)

 

 

(83

)

 

 

 

 

 

Current quarter

 

 

Year to date

(3 months)

 

 

 

 

 

US$ '000

 

 

US$ '000

 

3

 

Cash flows related to financing activities

 

 

 

 

 

 

 

 

3.1

 

Proceeds from issues of shares

 

 

40,449

 

 

 

40,449

 

3.2

 

Proceeds from issue of convertible notes

 

 

 

 

 

 

3.3

 

Proceeds from exercise of share options

 

 

 

 

 

 

3.4

 

Transaction costs related to issues of shares, convertible notes or options

 

 

(2,001

)

 

 

(2,001

)

3.5

 

Proceeds from borrowings

 

 

 

 

 

 

3.6

 

Repayment of borrowings

 

 

 

 

 

 

3.7

 

Transaction costs related to loans and borrowings

 

 

 

 

 

 

3.8

 

Dividends paid

 

 

 

 

 

 

3.9

 

Other (provide details if material)

 

 

 

 

 

 

3.10

 

Net cash from / (used in) financing activities

 

 

38,448

 

 

 

38,448

 

 

 

 

 

 

Current quarter

 

 

Year to date

(3 months)

 

 

 

 

 

US$ '000

 

 

US$ '000

 

4

 

Net increase / (decrease) in cash and cash equivalents for the period

 

 

 

 

 

 

 

 

4.1

 

Cash and cash equivalents at beginning of quarter/year to date

 

 

45,761

 

 

 

45,761

 

4.2

 

Net cash from / (used in) operating activities (item 1.9 above)

 

 

(20,899

)

 

 

(20,899

)

4.3

 

Net cash from / (used in) investing activities (item 2.6 above)

 

 

(83

)

 

 

(83

)

4.4

 

Net cash from / (used in) financing activities (item 3.10 above)

 

 

38,448

 

 

 

38,448

 

4.5

 

Effect of movement in exchange rates on cash held

 

 

(286

)

 

 

(286

)

4.6

 

Cash and cash equivalents at end of quarter

 

 

62,941

 

 

 

62,941

 

 

 

 

+ See chapter 19 for defined terms.

 

01/09/2016 Appendix 4C Page 2


Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

 

 

 

 

 

 

Current quarter

 

 

Previous quarter

 

 

 

 

 

US$ '000

 

 

US$ '000

 

5

 

Reconciliation of cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

 

 

 

 

 

 

 

 

5.1

 

Bank balances

 

 

27,847

 

 

 

5,919

 

5.2

 

Call deposits

 

 

34,624

 

 

 

39,381

 

5.3

 

Bank overdrafts

 

 

 

 

 

 

5.4

 

Other (Term deposits)

 

 

470

 

 

 

461

 

5.5

 

Cash and cash equivalents at end of quarter (should equal item 4.6 above)

 

 

62,941

 

 

 

45,761

 

 

 

 

 

 

 

 

Current quarter

 

 

 

 

 

 

 

US$ '000

 

6

 

Payments to directors of the entity and their associates

 

 

 

 

 

 

6.1

 

Aggregate amount of payments to these parties included in item 1.2

 

 

 

 

396

 

6.2

 

Aggregate amount of cash flow from loans to these parties included in item 2.3

 

 

 

 

 

6.3

 

Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

 

 

 

Payment to directors (for the current quarter) = $396k

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current quarter

 

 

 

 

 

 

 

US$ '000

 

7

 

Payments to related entities of the entity and their associates

 

 

 

 

 

 

7.1

 

Aggregate amount of payments to these parties included in item 1.2

 

 

 

 

 

7.2

 

Aggregate amount of cash flow from loans to these parties included in item 2.3

 

 

 

 

 

7.3

 

Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

 

 

 

not applicable

 

 

 

 

 

 

 

 

 

 

 

Total facility amount

at quarter end

 

 

Amount drawn

at quarter end

 

 

 

 

 

US$ '000

 

 

US$ '000

 

8

 

Financing facilities available

 

 

 

 

 

 

 

 

 

 

Add notes as necessary for an understanding of the position

 

 

 

 

 

 

 

 

8.1

 

Loan facilities

 

 

 

 

 

 

8.2

 

Credit standby arrangements

 

 

 

 

 

 

8.3

 

Other (please specify)

 

 

 

 

 

 

8.4

 

Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

 

 

 

not applicable

 

 

 

+ See chapter 19 for defined terms.

 

01/09/2016Appendix 4C Page 3


Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

 

 

 

 

 

 

 

 

US$ '000

 

9

 

Estimated cash outflows for next quarter

 

 

 

 

 

 

9.1

 

Research and development

 

 

 

 

(14,172

)

 

 

          - research and development expenditure includes the incremental costs

           of the MPC-150-IM phase 3 program in advanced chronic heart failure.

 

 

 

 

 

 

9.2

 

Manufacturing commercialisation

 

 

 

 

(638

)

9.3

 

Advertising and marketing

 

 

 

 

 

9.4

 

Leased assets

 

 

 

 

 

9.5

 

Staff costs

 

 

 

 

(2,574

)

9.6

 

Other expenses from ordinary activities

 

 

 

 

(3,407

)

9.7

 

Other (provide details if material):

 

 

 

 

 

 

 

 

(a) Intellectual property portfolio expenses

 

 

 

 

(726

)

9.8

 

Total estimated cash outflows

 

 

 

 

(21,517

)

 

*Mesoblast is in advanced negotiations with selected pharmaceutical companies with respect to potential partnering of certain Tier 1 product candidates. If Mesoblast enters into a binding transaction in the next quarter, Mesoblast expects that one effect of the transaction is that its cash reserves are likely to increase. Mesoblast does not make any representation or give any assurance that such a binding transaction will be concluded.

 

In addition, Mesoblast expects its cash reserves to increase in the next quarter as we expect to receive the following income:

 

-

royalty income earned on sales of TEMCELL® HS Inj. in Japan, and

 

-

interest income.

 

Mesoblast has established an equity facility for up to A$120 million/US$90 million over the next two years, to be used at its discretion to provide additional funds as required.

 

 

 

 

 

Acquisitions

 

 

Disposals

 

 

 

 

 

US$ '000

 

 

US$ '000

 

10

 

Acquisitions and disposals of business entities

 

 

 

 

 

 

 

 

 

 

(items 2.1(b) and 2.2(b) above)

 

 

 

 

 

 

 

 

10.1

 

Name of entity

 

 

 

 

 

 

10.2

 

Place of incorporation or registration

 

 

 

 

 

 

10.3

 

Consideration for acquisition or disposal

 

 

 

 

 

 

10.4

 

Total net assets

 

 

 

 

 

 

10.5

 

Nature of business

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

+ See chapter 19 for defined terms.

 

01/09/2016 Appendix 4C Page 4


Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

 

 

Compliance statement

 

1

This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

 

2

This statement gives a true and fair view of the matters disclosed.

 

 

 

Sign here:/s/ Charlie HarrisonDate: 31 October 2017

                                (Company Secretary)

 

 

Print name:Charlie Harrison

 

Notes

 

1.

The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

 

2.

If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

 

3.

Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

 

+ See chapter 19 for defined terms.

 

01/09/2016Appendix 4C Page 5