Market Newsdesk

Third
Quarter Total Net Revenue Increases
11
% to RUB
6,637
Million and Adjusted Net Profit
Increases
7
3
% to RUB
3,
275
Million or
RUB
5
2
.
49
per diluted share

QIWI
reiterates
20
20
Guidance

Board of Directors Approves
Dividends of
3
4
cents per share

NICOSIA, Cyprus, Nov. 19, 2020 (GLOBE NEWSWIRE) — QIWI plc (NASDAQ: QIWI) (MOEX: QIWI) (“QIWI” or the “Company”) today announced results for the third quarter ended September 30, 2020.

Third


Quarter 20


20


Operating and Financial Highlights

• Total Net Revenue increased 11% to RUB 6,637 million ($83.3 million)
• Payment Services Segment Net Revenue increased 11% to RUB 6,108 million ($76.7 million)
• Adjusted EBITDA increased 60% to RUB 4,020 million ($50.4 million)
• Adjusted Net Profit increased 73% to RUB 3,275 million ($41.1 million), or RUB 52.49 per diluted share
• Payment Services Segment Net Profit increased 11% to RUB 3,633 million ($45.6 million) or RUB 58.21 per diluted share
• Total Payment Services volume increased 11% to RUB 435.4 billion ($5.5 billion)

“Today I’m glad to share our third quarter 2020 financial results. This quarter we continued to demonstrate strong performance in our Payment Services segment and Other projects. Our Payment Services segment showed solid dynamics and delivered 11% segment net revenue growth supported by several factors including high density of sport events as well as growth of our strategic self-employed stream. This quarter we also successfully closed the Sovest sale transaction and concluded the wind down of Rocketbank which has reshaped our focus on core operations as well as projects that can be synergetic with our key products, consumer niches and competences,” said Boris Kim, QIWI’s chief executive officer. “Today we see increasing uncertainty related to among other things the spread of coronavirus and we closely monitor the situation as it evolves. This being said we continue to focus on optimizing and improving efficiency of our operations across all projects. Despite uncertainty and challenging economic and operational environment, we see diverse opportunities for growth in mid and long term and we believe that we are well positioned to continue expanding our business with the ultimate goal of securing our long-term growth prospects.”

Third


Quarter 20


20


Results

Total
and Segment Net
Revenues: Total Net Revenue for the quarter ended September 30, 2020 was RUB 6,637 million ($83.3 million), an increase of 11% compared with RUB 5,993 million in the prior year. The increase mainly resulted from Payment Services (PS) Segment Net Revenue growth and positive contribution of Rocketbank (RB) Segment as opposed to negative effect on Total Net Revenue for the same period of the previous year offset by Consumer Financial Services (CFS) Segment Net Revenue decline due to the sale of the SOVEST project.

Payment Services Segment Net Revenue for the quarter ended September 30, 2020 was RUB 6,108 million ($76.7 million), an increase of 11% compared with RUB 5,484 million in the prior year.

PS Payment Adjusted Net Revenue was RUB 5,303 million ($66.6 million), an increase of 13% compared with RUB 4,676 million in the prior year. PS Payment Adjusted Net Revenue growth was predominantly driven by volume growth.

PS Other Adjusted Net Revenue, which is principally composed of revenue from fees for inactive accounts and unclaimed payments, interest revenue, revenue from overdrafts provided to agents, and advertising, was RUB 806 million ($10.1 million) compared with RUB 808 million in the prior year. Fees for inactive accounts and unclaimed payments for the third quarter ended September 30, 2020 were RUB 506 million ($6.4 million) compared with RUB 484 million for the corresponding period in the prior year. PS Other Adjusted Net Revenue excluding revenue from fees for inactive accounts and unclaimed payments decreased 7% compared with the same period in the prior year to RUB 300 million mainly due to lower interest revenue resulting primarily from lower CBR rate.

Corporate and Other Category (CO) Net Revenue includes: (i) net revenue from cash and settlement services related to the operations of the Tochka project¹; (ii) net revenue from account receivable financing and digital bank guarantees products of Factoring PLUS project; (iii) net revenue from marketing solution products of Flocktory; and (iv) net revenue from other start-up projects. For the quarter ended September 30, 2020 Corporate and Other Category Net Revenue was RUB 449 million ($5.6 million) compared with RUB 268 million in the third quarter of the prior year. Category Net Revenue dynamics was driven primarily by the following factors:

• Tochka Net Revenue for the quarter ended September 30, 2020 was RUB 126 million ($1.6 million) compared with RUB 199 million in the third quarter of the prior year. Tochka Net Revenue decline primarily resulted from a decrease in revenue generated from cash and settlement services due to lower number of active clients in QIWI Bank.
• Factoring Net Revenue for the quarter ended September 30, 2020 was RUB 182 million ($2.3 million) compared with RUB 55 million in the third quarter of the prior year. Factoring Net Revenue growth resulted predominantly from the scaling of the project including expansion of bank guarantees and factoring portfolios.
• Flocktory Net Revenue for the quarter ended September 30, 2020 was RUB 135 million. Flocktory was considered as an associate before it was consolidated as a part of the QIWI Group in the fourth quarter of 2019.

Adjusted EBITDA: For the quarter ended September 30, 2020, Adjusted EBITDA was RUB 4,020 million ($50.4 million), an increase of 60% compared with RUB 2,516 million in the prior year. The adjusted EBITDA increase was driven primarily by Total Net Revenue growth as well as a decline in selling, general and administrative expenses to RUB 711 million for the quarter ended September 30, 2020 as compared to RUB 1,510 million for same period in the prior year resulting primarily from a decrease in advertising, client acquisition and related expenses driven by the divestiture of SOVEST and Rocketbank projects. Adjusted EBITDA growth was offset by an increase in personnel expenses (excluding effect of share-based payments) to RUB 1,946 million for the quarter ended September 30, 2020 as compared to RUB 1,788 million for same period in the prior year mainly as a result of an increase of Payment Services segment personnel expenses as well as consolidation of Flocktory offset by a decline in personnel expenses of CFS and RB segments. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of Total Net Revenue) was 60.6% for the quarter ended September 30, 2020 compared with 42.0% for the same period in the prior year.

Adjusted
and Segment
Net Profit: For the quarter ended September 30, 2020, Adjusted Net Profit (Total Segment Net Profit) was RUB 3,275 million ($41.1 million), an increase of 73% compared with RUB 1,893 million in the prior year. The growth of Adjusted Net Profit was primarily driven by the same factors impacting Adjusted EBITDA increase as well as by higher foreign exchange gain² offset by higher income tax expenses.

For the quarter ended September 30, 2020, Payment Services Segment Net Profit was RUB 3,633 million ($45.6 million), an increase of 11% compared with RUB 3,259 million in the prior year driven by Payment Services Segment Net Revenue growth as well as by a decline of travelling expenses and marketing and advertising expenses offset by an increase in personnel expenses (excluding effect of share-based payments).

The Consumer Financial Services Segment Net Loss for the third quarter 2020 was RUB 137 million ($1.7 million) as compared to a Net Loss of RUB 424 million for the same period of the prior year resulting primarily from a decrease in personnel expenses (excluding effect of share-based payments),selling, general and administrative expenses due to the project sale as well as credit loss recovery compared to credit loss expenses in the prior year.

Rocketbank Segment Net Loss was RUB 165 million ($2.1 million), as compared to the Net Loss of RUB 632 million in the prior year resulting mainly from a decrease in personnel expenses (excluding effect of share-based payments) and selling, general and administrative expense due to the project winding-down.

Corporate and Other Category Net Loss includes: (i) net profit from the Tochka JV operations; (ii) net profit/loss of Factoring PLUS project; (iii) net profit/loss of the Flocktory project; (iv) net profit/loss from other start-up projects, and (v) Corporate expenses. Corporate and Other Category Net Loss for the third quarter 2020 was RUB 56 million compared to a Net Loss of RUB 310 million for the same period of the previous year. The dynamic of CO category Net Loss was driven primarily by the following factors:

• Corporate Net Loss for the third quarter of 2020 was RUB 408 million ($5.1 million) compared with RUB 353 million for the same period of the previous year;
• Tochka Net Profit for the third quarter of 2020 was RUB 281 million ($3.5 million) compared with RUB 156 million in the same quarter of the previous year. Tochka Net Profit increase resulted from higher equity pick-up primarily driven by the growth and development of the Tochka business despite challenging operating environment.
• Factoring Plus Net Profit for the third quarter of 2020 was RUB 72 million ($0.9 million) compared with Net Loss of RUB 14 million for the same period of the previous year. Factoring Plus Net Profit growth was mainly driven by project Net Revenue increase.

Payment Services
Other Operating Data: For the quarter ended September 30, 2020, Payment Services Segment payment volume was RUB 435.4 billion ($5.5 billion), an increase of 11% compared with RUB 391.3 billion in the prior year. The increase in payment volume was primarily driven by growth in E-commerce and Money Remittances market verticals offset by decline in Financial Services and Telecom market verticals. Payment Average Adjusted Net Revenue Yield was 1.22%, increase of 2 bps as compared with 1.20% in the prior year primarily driven by volumes shift towards higher yielding verticals.

Payment Services Segment Net Revenue Yield was 1.40%, flat as compared with the prior year.

The number of active kiosks and terminals was 117,137 including Contact and Rapida physical points of service and decreased by 14% compared with the prior year. The number of kiosks and terminals is generally decreasing as market evolves towards higher share of digital payments, moreover our physical distribution network was and to a certain extend continues to be negatively affected by the spread of COVID-19 pandemic, corresponding lockdown measures and other restrictions that limited users’ access to certain retail locations as well as the overall activity of the population. Nevertheless, we believe that our physical distribution network remains an important part of our infrastructure.

The number of active Qiwi Wallet accounts was 19.7 million as of September 30, 2020, a decrease of 2.6 million, or 12%, as compared with 22.3 million as of September 30, 2019 primarily resulting from the introduction of new limitations on the anonymous wallets and consequent optimization of certain transaction processes, change of inactivity term from 6 to 12 months and enhancement of certain KYC, identification and compliance procedures. Such decline did not substantially impact our financial or operating performance due to increasing diversification of our product proposition and operating models.

Recent Developments

Ro
c
ketbank
Winding down
: As of September 30, 2020, we have substantially completed the process of Rocketbank B2C operations wind down. We continue to pilot certain projects that were developed earlier this year in Rocketbank in our Payment Services Segment particularly as part of our self employed stream product pipeline. The expenses associated with such pilots including predominantly personnel expenses are attributed to the Payment Services Segment starting August 1, 2020.

Dividend: In March 2020, the Board of Directors has approved a target dividend payout ratio for 2020. In accordance with the decision of the Board of Directors, the Company aims to distribute at least 50% of Group Adjusted Net Profit for 2020.

Following the determination of the third quarter 2020 financial results and taking into consideration our current operating environment, our Board of Directors approved a dividend of USD 34 cents per share. The dividend record date is December 1, 2020, and the Company intends to pay the dividend on December 3, 2020. The holders of ADSs will receive the dividend shortly thereafter.

The Board of Directors reserves the right to distribute the dividends on a quarterly basis, as it deems necessary so that the total annual payout is in accordance with the target range provided, though the payout ratios for each of the quarters may vary and be outside of this range.

It remains the long-term intention of the Company to distribute all excess cash to the shareholders.

20


20


Guidance



³

QIWI reiterates its guidance in respect of 2020 outlook:

• Total Net Revenue is expected to increase by 7% to 15% over 2019;
• Payment Services Segment Net Revenue is expected to increase by 3% to 10% over 2019;
• Adjusted Net Profit is expected to increase by 35% to 50% over 2019.

For the purpose of the guidance in respect of 2020 outlook we would like to outline the following considerations:
The outbreak of the COVID-19 strain of coronavirus and associated responses from various countries around the world is likely to negatively affect consumer demand across the globe and across industries, and there is the potential for COVID-19 and responses to it to cause a global recession. At this moment we are not able to accurately estimate the potential impact of COVID-19 on our business. In addition, it is currently unclear how much consumer demand will be negatively affected by the outbreak of COVID-19 and what effect the outbreak of COVID-19 will have on the macroeconomic environment, as a whole. The full impact remains uncertain and will depend on the length and severity of the effect of the coronavirus on economic activity in our markets. Our outlook reflects our current views and expectations only and is based on the trends we see as of the day of this report. If such trends were to deteriorate further the impact on our business and operations could be more severe than currently expected. We continue to monitor the situation closely.

The Company reserves the right to revise guidance in the course of the year or when additional information regarding the effect of the ongoing events becomes available.

¹ Starting from the first quarter 2020 we present Tochka JV results as part of the Corporate and Other Category
² Foreign exchange gain/loss is calculated as total foreign exchange gain/loss, net recognized in the statement of comprehensive income excluding the effect of foreign exchange gain/loss on June 2014 offering proceeds
³ Guidance is provided in Russian ruble

Earnings Conference Call and Audio Webcast

QIWI will host a conference call to discuss third quarter 2020 financial results today at 8:30 a.m. ET. Hosting the call will be Boris Kim, chief executive officer, Andrey Protopopov, chief executive officer of Payment Services Segment, and Varvara Kiseleva, interim chief financial officer. The conference call can be accessed live over the phone by dialing +1 (877) 407-3982 or for international callers by dialing +1 (201) 493-6780. A replay will be available at 11:30 a.m. ET and can be accessed by dialing +1 (844) 512-2921 or +1 (412) 317-6671 for international callers; the pin number is 13712897. The replay will be available until Thursday, December 3, 2020. The call will be webcast live from the Company’s website at https://www.qiwi.ru under the Corporate Investor Relations section or directly at http://investor.qiwi.com/.

About QIWI plc.

QIWI is a leading provider of next generation payment and financial services in Russia and the CIS. It has an integrated proprietary network that enables payment services across online, mobile and physical channels. It has deployed over 19.7 million virtual wallets, over 117,000 kiosks and terminals, and enabled merchants and customers to accept and transfer over RUB 145 billion cash and electronic payments monthly connecting over 32 million consumers using its network at least once a month. QIWI’s consumers can use cash, stored value and other electronic payment methods in order to pay for goods and services or transfer money across virtual or physical environments interchangeably.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding expected total net revenue, Payment Services Segment net revenue, adjusted net profit and net revenue yield, dividend payments, payment volume growth, growth of physical and virtual distribution channels, trends in each of our market verticals, and statements regarding the divestiture of non-core investments, including Rocketbank as well as the statements regarding the development of other new projects. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance or achievements of QIWI plc. to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Various factors that could cause actual future results and other future events to differ materially from those estimated by management include, but are not limited to, the macroeconomic conditions of the Russian Federation and in each of the international markets in which we operate, growth in each of our market verticals, competition, the introduction of new products and services and their acceptance by consumers, QIWI’s ability to estimate the market risk and capital risk associated with new projects, a decline in net revenue yield, regulation, QIWI’s ability to grow physical and virtual distribution channels, cyberattacks and security vulnerabilities in QIWI’s products and services, QIWI’s ability to expand geographically, the risk that new projects will not perform in accordance with its expectations and other risks identified under the Caption “Risk Factors” in QIWI’s Annual Report on Form 20-F and in other reports QIWI files with the U.S. Securities and Exchange Commission. QIWI undertakes no obligation to revise any forward-looking statements or to report future events that may affect such forward-looking statements unless QIWI is required to do so by law.

_________________

_________________

_________________

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Non-IFRS Financial Measures and Supplemental Financial Information

This release presents PS Payment Adjusted Net Revenue, PS Other Adjusted Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit and Adjusted Net Profit per share, which are non-IFRS financial measures. You should not consider these non-IFRS financial measures as substitutes for or superior to revenue, in the case of PS Payment Adjusted Net Revenue and PS Other Adjusted Net Revenue; Net Profit, in the case of Adjusted EBITDA; and Adjusted Net Profit, or earnings per share, in the case of Adjusted Net Profit per share, each prepared in accordance with IFRS. Furthermore, because these non-IFRS financial measures are not determined in accordance with IFRS, they are susceptible to varying calculations and may not be comparable to other similarly titled measures presented by other companies. QIWI encourages investors and others to review our financial information in its entirety and not rely on a single financial measure. For more information regarding PS Payment Adjusted Net Revenue, PS Other Adjusted Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit, and Adjusted Net Profit per share, including a quantitative reconciliation of Total Net Revenue, PS Payment Adjusted Net Revenue, PS Other Adjusted Net Revenue, Adjusted EBITDA and Adjusted Net Profit to the most directly comparable IFRS financial performance measure, which is revenue in the case of Total Net Revenue, PS Payment Adjusted Net Revenue and PS Other Adjusted Net Revenue and Net Profit in the case of Adjusted EBITDA and Adjusted Net Profit, see Reconciliation of IFRS to Non-IFRS Operating Results in this earnings release.

PS Payment Adjusted Net Revenue is the Adjusted Net Revenue consisting of the merchant and consumer fees collected for the payment transactions. E-commerce payment adjusted net revenue consists of fees charged to customers and merchants that buy and sell products and services online, including online games, social networks, betting, online stores, game developers, software producers, coupon websites, tickets and numerous other merchants. Financial Services payment adjusted net revenue primarily consists of fees charged for payments accepted on behalf of our bank partners and microfinance companies. Money Remittances payment adjusted net revenue primarily consists of fees charged for transferring funds via money remittance companies, card-to-card transfers and certain wallet-to-wallet transfers. Telecom payment adjusted net revenue primarily consists of fees charged for payments to MNOs, internet services providers and pay television providers. Other payment adjusted net revenue consists of consumer and merchant fees charged for a variety of payments including multi-level-marketing, utility bills, government payments, education services and many others. PS Other Adjusted Net Revenue primarily consists of revenue from fees for inactive accounts and unclaimed payments, interest revenue, revenue from overdrafts provided to agents, rent of space for kiosks, cash and settlement services and advertising.

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‒
Completed
E
nrollment in Phase 2
Clinical Trial
of EB613,
P
ositioned
as the
F
irst
P
otential
O
ral
B
one
B
uilding
P
roduct to
T
reat
O
steoporosis
‒

‒
Positive
Interim
6-Month
Bone Mineral Density (
BMD
)
Data
Reported
in Phase 2
EB613
Clinical Trial
‒

‒
Company
Expect
s
to
Report
Bio
m
arker
Data
that Includes the
2.5
mg Dose in Q1:21
and
Final Data
from The Phase 2 Trial
Including BMD
in Q2:
21
‒

‒
Company to Host Conference Call and Webcast Today at 8:30 a.m. ET
‒

BOSTON and JERUSALEM, Nov. 19, 2020 (GLOBE NEWSWIRE) — Entera Bio Ltd. (NASDAQ: ENTX), a leader in the development of orally delivered large molecule therapeutics, announced financial and operating results for the quarter ended September 30, 2020 and provided a clinical update on EB613, its lead, orally delivered product candidate for the treatment of osteoporosis.

Third
Quarter 20
20
and Recent Highlights

• Completed Enrollment
  with
  161
  Subjects Randomized
  in
  the
  Phase 2 Study of
  EB61
  3 in Osteoporosis: EB613 is an orally delivered, human parathyroid hormone (1-34) (PTH) and is positioned as the first potential, oral bone building product to treat osteoporosis. The Phase 2 clinical trial is a dose-ranging, placebo-controlled, study in postmenopausal female subjects with osteoporosis, or low BMD. This trial is being conducted at four leading medical centers in Israel and had an initial target enrollment of 160 subjects. Based on the 3-month interim biochemical marker and safety data from the first 80 subjects randomized, the Phase 2 protocol was amended in third quarter to discontinue the two lower doses of EB613 (0.5 mg and 1.0 mg) and add a 2.5 mg dose. 

• Positive Interim Data in Phase 2
  Clinical Trial
  of EB613 in Osteoporosis
  : During the third quarter, Entera announced 6-month interim biomarker and BMD data from the first 50%, or 80 patients, enrolled in its Phase 2 clinical trial of EB613. The data indicate EB613 has a meaningful and positive impact on lumbar spine BMD in a dose dependent manner. EB613 generated a mean placebo adjusted increase in lumbar spine BMD of 2.15% (p = 0.08) for the 14 patients in the 1.5 mg treatment arm, as compared to the 16 patients in the placebo arm. The placebo-adjusted increase was comprised of a mean BMD increase of 1.44% in the 1.5 mg treatment arm compared to a mean decrease of 0.71% in the placebo arm. An additional analysis of BMD changes in the three lower EB613 treatment groups (0.5 mg, 1.0 mg and 1.5 mg) showed a significant dose-dependent trend in the percentage change in lumbar spine BMD. The dose response was supportive of Entera’s decision to include a higher 2.5 mg dose in the trial to potentially increase efficacy.

• Continued
  Pipeline
  Development
  : Entera is identifying new targets for preclinical development based on its oral drug delivery platform, as well as developing optimal formulations for EB612 in preparation for a potential Phase 2b or Phase 3 study in hypoparathyroidism in 2021 or 2022. Entera has previously completed one successful Phase 2a study of EB612 in this indication. 

• Amgen
  Collaboration Agreement
  : Several studies have been completed using Entera’s technology to evaluate different formulations of Amgen’s drug. In addition to its collaboration with Amgen, Entera is actively evaluating additional business development opportunities with other pharmaceutical companies.

“We are highly encouraged by the interim results from our EB613 program in osteoporosis as well as our ability to complete enrollment given the significant challenges due to the COVID-19 pandemic. EB613’s positive impact on lumbar spine BMD in a dose dependent manner is important, as BMD is a widely accepted measure of the severity of the disease. Having recently completed enrollment, and assuming we achieve positive topline results, we are looking towards a Phase 3 study with a primary endpoint of an increase in lumbar spine BMD under the 505 (b)(2) regulatory pathway based on our previous discussions with the U.S. Food and Drug Administration,” stated Roger Garceau, MD, Director and Interim CEO of Entera. “Based on market research data conducted earlier in 2020, it is clear that EB613 has a strong value proposition in the market. If we are able to successfully complete clinical development and gain regulatory approval, EB613 may be well accepted by patients and physicians alike.”

Financial Results for the
Nine
Months Ended
September
30,
20
20

Revenues for the nine months ended September 30, 2020 were $144,000 as compared to $134,000 in the first nine months of 2019, with revenues in both years attributable to R&D services provided to Amgen. The cost of revenues for the nine months ended September 30, 2020 and 2019 were $104,000 and $102,000, respectively and were comprised of salaries and related expenses in connection with the R&D services provided to Amgen.  

Operating expenses were $8.9 million for the nine months ended September 30, 2020, compared to $8.0 million for the first nine months of 2019. Entera’s operating loss was $(8.8) million for the nine months ended September 30, 2020, compared to $(8.0) million for the first nine months of 2019.

Research and development expenses were $5.2 million for the nine months ended September 30, 2020, compared to $5.2 million for the nine months ended September 30, 2019. An increase in clinical trial expense in the nine month period in 2020 primarily due to the conduct of the Phase 2 clinical trial of EB613 was offset by decreases in expenses related to preclinical activities, manufacturing costs and compensation-related expenses.

General and administrative expenses were $3.7 million for the nine months ended September 30, 2020, compared to $2.8 million for the nine months ended September 30, 2019. The increase was primarily due to increases in compensation related expenses, professional and legal fees and insurance costs.

Net comprehensive loss was $(7.7) million or $(0.42) per ordinary share for the nine months ended September 30, 2020 compared to $(7.4) million, or $(0.63) per ordinary share for the nine months ended September 30, 2019. The change in net loss is primarily due to the increase in overall operating expenses.

At September 30, 2020, Entera had cash and cash equivalents of $7.1 million, compared to $15.2 million at December 31, 2019.

Entera expects an operating loss of at least $11.4 million for the year ending December 31, 2020, and believes its current cash position will be sufficient to fund its operations into the second quarter of 2021.

Conference Call
and Webcast
Information

Entera’s management will host a conference call on Thursday, November 19, 2020 at 8:30 a.m. ET. A question-and-answer session will follow Entera’s remarks. To participate on the live call, please dial (855) 547-3865 (US) or (409) 217-8787 (international) and provide the conference ID “9495026” five to ten minutes before the start of the call.

To access a live audio webcast of the presentation on the “Investor Relations” page of Entera’s website, please click here. A replay of the webcast will be archived on Entera’s website for approximately 45 days following the presentation.

About Entera Bio Ltd.

Entera is a leader in the development of orally delivered large molecule therapeutics for use in areas with significant unmet medical need where adoption of injectable therapies is limited due to cost, convenience and compliance challenges for patients. The Company’s proprietary, oral drug delivery technology is designed to address the technical challenges of poor absorption, high variability, and the inability to deliver large molecules to the targeted location in the body through the use of a synthetic absorption enhancer to facilitate the absorption of large molecules, and protease inhibitors to prevent enzymatic degradation and support delivery to targeted tissues. The Company’s most advanced product candidates, EB613 for the treatment of osteoporosis and EB612 for the treatment of hypoparathyroidism are in Phase 2 clinical development. Entera also licenses its technology to biopharmaceutical companies for use with their proprietary compounds and, to date, has established a collaboration with Amgen Inc. For more information on Entera Bio, visit www.enterabio.com.

Forward Looking Statements

Various statements in this release are “forward-looking statements” under the securities laws. Words such as, but not limited to, “anticipate,” “believe,” “can,” “could,” “expect,” “estimate,” “design,” “goal,” “intend,” “may,” “might,” “objective,” “plan,” “predict,” “project,” “target,” “likely,” “should,” “will,” and “would,” or the negative of these terms and similar expressions or words, identify forward-looking statements. Forward-looking statements are based upon current expectations that involve risks, changes in circumstances, assumptions and uncertainties. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of when such performance or results will be achieved.

Important factors that could cause actual results to differ materially from those reflected in Entera’s forward-looking statements include, among others: changes in our interpretation of the interim data from the ongoing Phase 2 clinical trial of EB613, the timing of data readouts from the ongoing Phase 2 clinical trial of EB613, unexpected changes in our ongoing and planned preclinical development and clinical trials, the timing of and our ability to make regulatory filings and obtain and maintain regulatory approvals for our product candidates; a possible suspension of the Phase 2 clinical trial of EB613 for clinical or data-related reasons; the impact of COVID-19 on Entera’s business operations including the ability to collect the necessary data from the Phase 2 trial of EB613; the potential disruption and delay of manufacturing supply chains, loss of available workforce resources, either by Entera or its collaboration and laboratory partners, due to travel restrictions, lay-offs or forced closures or repurposing of hospital facilities; impacts to research and development or clinical activities that Entera is contractually obligated to provide, such as pursuant to Entera’s agreement with Amgen; overall regulatory timelines, if the FDA or other authorities are closed for prolonged periods, choose to allocate resources to review of COVID-19 related drugs or believe that the amount of Phase 2 clinical data collected are insufficient to initiate a Phase 3 trial, or a meaningful deterioration of the current political, legal and regulatory situation in Israel or the United States; the availability, quality and timing of the data from the Phase 2 clinical trial of EB613 in osteoporosis patients; the ability find a dose that demonstrates the comparability of EB613 to FORTEO in the ongoing Phase 2 clinical trial of EB613; the size and growth of the potential market for EB613 and Entera’s other product candidates including any possible expansion of the market if an orally delivered option is available in addition to an injectable formulation; the scope, progress and costs of developing Entera’s product candidates; Entera’s reliance on third parties to conduct its clinical trials; Entera’s expectations regarding licensing, business transactions and strategic collaborations; Entera’s operation as a development stage company with limited operating history; Entera’s ability to continue as a going concern absent access to sources of liquidity; Entera’s expectations regarding its expenses, revenue, cash resources, including the amount of cash and cash equivalents as of September 30, 2020 referenced above, which has not been audited or reviewed by Entera’s independent registered public accounting firm and should be viewed in the context of all other available information regarding Entera’s results of operations, liquidity and financial condition; Entera’s ability to raise additional capital; Entera’s interpretation of FDA feedback and guidance and how such guidance may impact its clinical development plans; Entera’s ability to obtain and maintain regulatory approval for any of its product candidates; Entera’s ability to comply with Nasdaq’s minimum listing standards and other matters related to compliance with the requirements of being a public company in the United States; Entera’s intellectual property position and its ability to protect its intellectual property; and other factors that are described in the “Special Note Regarding Forward-Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Entera’s annual and current filings which are on file with the SEC and available free of charge on the SEC’s website at http://www.sec.gov. Additional factors may be set forth in those sections of Entera’s Quarterly Report on Form 6-K for the quarter ended September 30, 2020, to be filed with the SEC in the fourth quarter of 2020. In addition to the risks described above and in Entera’s annual report on Form 20-F and current reports on Form 6-K and other filings with the SEC, other unknown or unpredictable factors also could affect Entera’s results. There can be no assurance that the actual results or developments anticipated by Entera will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Entera. Therefore, no assurance can be given that the outcomes stated in such forward-looking statements and estimates will be achieved.

All written and verbal forward-looking statements attributable to Entera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to herein. Entera cautions investors not to rely too heavily on the forward-looking statements Entera makes or that are made on its behalf. The information in this release is provided only as of the date of this release, and Entera undertakes no obligation, and specifically declines any obligation, to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

ENTERA BIO LTD.

CONDENSED
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS

(UNAUDITED)

(
US$
in thousands, except share and per share data)

ENTERA BIO LTD.

CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(
US$
in thousands)

Toronto, Ontario, Nov. 19, 2020 (GLOBE NEWSWIRE) — Canndora, the global media and event platform, and initiative created by Marigold Marketing & PR to support advancing women in emerging industries has announced it is hosting #CanndoraConnect: Women in Psychedelics event.

A virtual event, #CanndoraConnect: Women in Psychedelics is open to audiences worldwide and will take place 2:00-4:00 p.m. EST on Wednesday, December 2nd, 2020. The event will offer attendees a unique experience, providing collaboration, networking, inspiration, and advice for women’s success in the emerging psychedelics industry worldwide. 

“We are honoured to be partnering with Canndora to create a movement that is bringing awareness and attention to advancing women in the emerging psychedelics industry,” says Todd Shapiro, CEO & Director of Red Light Holland. “This is an exciting event that will provide amazing opportunities to network, learn, connect and feel inspired by all of the extraordinarily intelligent speakers and panellists, including Ann Barnes and Sarah Hashkes, whom we are proud and grateful to work so closely with at Red Light Holland.”

Attendees will hear from influential speakers, learn best industry practices for success, and network with leading industry experts in psychedelics. The event will feature notable industry professionals and panelists who will share their expertise on critical topics, including opportunities for international business in psychedelics and the science behind psilocybin and its role in women’s health.

Industry leaders and speakers in attendance include: 

• Ann Barnes, Director of Red Light Holland
• Sarah Hashkes, CEO of Radix Motion
• Terri Smith, Chief Mycologist of WAKE
• Dr. Olga Chernoloz, Chief Scientific Officer of WAKE
• Susan Chapelle, President of Havn Life
• Irie Selkirk, Co-founder & Director of Rise Wellness Retreats

“2020 is the year the voice of psychedelic renaissance has been heard the loudest,” says Dr. Olga Chernoloz, Chief Scientific Officer of WAKE. “So far the data streaming from the psychedelic clinical studies has been exceptionally promising. It gives hope to the development and recognition of new treatment modalities for the support of mental health. Women, often disproportionately affected by these conditions, could find a way to re-process the underlying emotional content and find balance with help of the psychedelic-assisted therapy.”

Now hosting its seventh professional event for emerging industries, including sell-out attendance in previous cannabis women-focused events, the #CanndoraConnect: Women and Psychedelics event is positioned to be a hailed success. The event is made possible with support from presenting partners, Red Light Holland (CSE: TRIP | OTC: TRUFF | FSE: 4YX) and WAKE. 

The #CanndoraConnect: Women in Psychedelics event is open to anyone 19+. Tickets are CAD$15.00 and attendees are encouraged to register as soon as possible as spaces are limited. To purchase tickets, register on Eventbrite.

For media and partner inquiries, contact Danielle McKay, Marketing & Media Executive at [email protected] or 905-808-7230.

About Canndora

Canndora is an educational and events platform connecting, activating & celebrating women in emerging industries. Launched in 2017, Canndora connects women and cannabis through events, content and conversation. www.canndora.com

About Marigold Marketing & PR

Marigold Marketing & PR is an award-winning marketing and PR firm for licensed producers and national brands. Marigold offers full-service packages to clients that include branding, social media, PR and publicity and integrated marketing. Marigold creates results-driven marketing campaigns of all sizes, leveraging paid, owned and earned media. Marigold makes an impact for clients through awareness-building campaigns, industry focus and excellent service. Learn more about Marigold’s all-encompassing services here.

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