Harel Hershtik wears two hats: Nextgen Biomed kicks off clinical trial while Axilion battles in court

One CEO, two companies, two contrasting stories: while Nextgen Biomed marks a milestone in the fight against cancer, Axilion turns to the court with an urgent request to save options, exposing a series of managerial problems along the way.

Harel Hershtik, CEO of Nextgen Biomed and interim CEO of Axilion, is experiencing a polarized week. Nextgen Biomed reported the launch of an important clinical trial for pancreatic cancer diagnosis, while Axilion filed an urgent court motion to extend options expiring "tomorrow," against the backdrop of suspended trading, missing reports, and control struggles.

Harel Hershtik, who serves as CEO of two public companies, experienced both sides of the business coin this week. While biomedical company Nextgen Biomed, which he manages, reported a significant milestone with the launch of a clinical trial for diagnosing fatal types of cancer, technology company Axilion Smart Mobility, where he serves as interim CEO, was forced to turn to the court with an urgent and dramatic motion just one day before a series of options expired. The motion exposes a tangle of managerial, financial, and control struggles threatening the company's stability.

### The drama at Axilion: A race against time in court
1The primary story comes from Axilion Smart Mobility. On October 4, just one day before the expiration date of Series 5 options, the company filed an urgent motion with the Haifa District Court. The purpose of the motion: to order an extension of the options' validity, allowing it to raise potential capital of approximately ₪2.45 million. What makes the move dramatic is the background that led to it, as revealed in court documents.

According to the company, the appeal to the court was made after discussions with the Israel Securities Authority (ISA) and the Tel Aviv Stock Exchange (TASE) hit a dead end. The regulators opposed the extension without obtaining an external valuation to justify the newly proposed exercise price of ₪0.47 per share. Since there was no time left to prepare such a valuation, the company turned to the legal route as a last resort.

2The court motion opens a Pandora's box of troubles at Axilion. The company admits that trading in its shares is suspended because it has yet to publish its financial reports. The delay stems, among other things, from the departure of the CFO, which also triggered the resignation of the auditing accountant. As of the filing date, the company is still in "advanced stages" of appointing replacements. In addition, the company notes that it is in the midst of a control struggle, after a group of shareholders filed a court motion to convene a meeting to replace the board of directors. All of this comes against the backdrop of a merger agreement with Going Dutch whose approval was delayed and subsequently canceled.

The company is asking the court for temporary relief to extend the options by three months, until January 5, 2027, to allow it to complete the required processes, including obtaining the valuation, and to secure the approval of shareholders and option holders for the full arrangement, which would extend the options until April 2027.

### Progress at Nextgen Biomed: Green light for a clinical trial
In stark contrast to the storm at Axilion, Nextgen Biomed, also managed by Hershtik, reported positive news from the scientific front. The company announced that it has actually commenced a clinical trial at Shamir Medical Center (Assaf Harofeh), after receiving approval from the institutional Helsinki Committee.

The purpose of the trial, conducted through its subsidiary St. Technologies, is to map biomarkers for pancreatic cancer and colorectal cancer. Based on this mapping, the company aims to develop a diagnostic and screening test for the early detection of these cancers using its proprietary technology.

In its report, Nextgen Biomed emphasized the clinical importance of the development. The company noted that there is currently no effective screening test for pancreatic cancer, considered one of the most fatal types of cancer, primarily due to late detection. Success in developing such a test could represent a significant breakthrough in the field of early diagnosis. The start of the trial marks an important milestone in the company's development program.

Thus, in the same week, Harel Hershtik found himself navigating between opposing worlds: on the one hand, orderly scientific progress with life-saving potential at Nextgen Biomed; on the other hand, legal, corporate, and financial firefighting at Axilion, a company fighting for its basic stability. Investors in both companies will closely monitor how the CEO navigates the various challenges on each front.