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BrainStorm Cell Therapeutics Inc. (NASDAQ:BCLI), a biotechnology company focused on developing innovative autologous stem cell therapies for debilitating neurodegenerative diseases, has been notified by Nasdaq that its Market Value of Listed Securities (MVLS) has fallen below the minimum requirement for continued listing on the Nasdaq Capital Market.
The company, incorporated in Delaware and based in New York, received the deficiency notice on Thursday, indicating that from June 2, 2024, to July 17, 2024, its MVLS remained below the $35 million threshold set by Nasdaq Listing Rule 5550(b)(2). Despite this setback, BrainStorm's common stock continues to be traded under the symbol “BCLI.”
BrainStorm now has a 180-day compliance period, ending on January 14, 2025, to address this shortfall. To regain compliance, the company's MVLS must close at $35 million or higher for at least ten consecutive business days before the compliance deadline.
If BrainStorm fails to meet the MVLS requirement by January 14, 2025, it may receive a delisting notice from Nasdaq. The company could appeal such a decision, but there is no assurance an appeal would be successful.
In response to the notice, BrainStorm has expressed its intent to actively monitor its MVLS and take reasonable measures to regain compliance. However, the company has cautioned that there can be no guarantee of maintaining the listing criteria.
The forward-looking statements included in the company's announcement reflect BrainStorm's current expectations and assumptions regarding its efforts to regain compliance. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
This news comes after BrainStorm's latest annual report, filed with the SEC on April 1, 2024, which outlines the company's business strategies and risk factors investors should consider.
Investors and stakeholders are keeping a close watch on BrainStorm's performance and the company's efforts to maintain its Nasdaq listing. This development is based on the company's recent SEC filing and does not include any speculative or promotional content.
In other recent news, BrainStorm Cell Therapeutics Inc. secured approximately $4 million through a registered direct offering and concurrent private placement. The company has been advancing its proprietary NurOwn® technology platform, used in clinical trials for neurodegenerative diseases such as amyotrophic lateral sclerosis (ALS) and progressive multiple sclerosis (MS).
In addition, BrainStorm has achieved consensus with the FDA on the Chemistry, Manufacturing, and Controls for its Phase 3b clinical trial of NurOwn®. This development marks a significant step following the FDA's Special Protocol Assessment agreement in 2024.
In terms of leadership, BrainStorm appointed Hartoun Hartounian Ph.D. as its new Executive Vice President and Chief Operating Officer. Hartounian brings over three decades of biopharmaceutical industry experience to the role.
Furthermore, BrainStorm successfully regained compliance with Nasdaq's minimum market value requirement, addressing potential delisting concerns. The company's investigational cell therapy, NurOwn, has shown promising results, influencing key biomarkers related to ALS, as indicated by the publication of Phase 3 biomarker data.
Lastly, the FDA has proposed designing a Phase 3b trial for NurOwn® in ALS patients, solidifying the clinical trial protocol and statistical analysis plan. These are the recent developments in BrainStorm's ongoing efforts to develop potential treatments for neurodegenerative diseases.
InvestingPro Insights
As BrainStorm Cell Therapeutics Inc. navigates the challenge of maintaining its Nasdaq listing, current financial metrics from InvestingPro provide a clearer picture of the company's status. With a market cap of just $27.61 million, BrainStorm falls short of Nasdaq's $35 million threshold. The company's performance over the last year has been tumultuous, with a significant price drop of 79.18%, reflecting investor concerns and the company's notification of its MVLS deficiency.
InvestingPro Tips indicate that BrainStorm is quickly burning through cash and has not been profitable over the last twelve months, which aligns with the reported adjusted operating income showing substantial losses of $18.76 million. Moreover, with a negative P/E ratio of -1.77, the company's earnings outlook remains challenging. Despite these headwinds, BrainStorm has experienced a large price uptick over the last six months, offering a glimmer of hope with a 34.32% return in that period.
For those looking to delve deeper into BrainStorm's financials and future prospects, InvestingPro offers additional insights. There are 9 more InvestingPro Tips available for BrainStorm, which can be a valuable resource for investors considering this stock. To access these tips and more detailed analytics, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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