NEW YORK – BrainStorm Cell Therapeutics Inc. (NASDAQ: BCLI), a developer of stem cell therapies for neurodegenerative diseases, has announced a registered direct offering and concurrent private placement totaling approximately $4 million. This capital raise involves selling over 11 million shares of common stock at $0.36 each to a single institutional investor.
Additionally, the private placement includes unregistered warrants for purchasing up to approximately 16.7 million shares at an exercise price of $0.3912, exercisable six months post-issuance and expiring in five years.
The company also revealed adjustments to existing warrants held by the investor, reducing the exercise price to $0.3912 and extending the expiration date to 2029. The offering is slated to close on Friday, with Maxim Group LLC serving as the sole placement agent.
This financial move comes after BrainStorm's efforts in advancing its proprietary NurOwn® technology platform, which has been used in clinical trials for amyotrophic lateral sclerosis (ALS) and progressive multiple sclerosis (MS).
The securities in the direct offering are being sold pursuant to a previously filed and effective "shelf" registration statement. The final prospectus supplement and accompanying prospectus for this offering will be available on the SEC's website.
The information for this article is based on a press release statement from BrainStorm Cell Therapeutics Inc.
In other recent news, BrainStorm Cell Therapeutics has seen significant developments in its pursuit of treatments for neurodegenerative diseases. The company has achieved consensus with the FDA on the Chemistry, Manufacturing, and Controls for its Phase 3b clinical trial of NurOwn®, a treatment under investigation for amyotrophic lateral sclerosis (ALS). Furthermore, BrainStorm has appointed Hartoun Hartounian Ph.D. as its new Executive Vice President and Chief Operating Officer, who brings over three decades of biopharmaceutical industry experience to the role.
In addition, BrainStorm has 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. Furthermore, the FDA has proposed designing a Phase 3b trial for NurOwn® in ALS patients, solidifying the clinical trial protocol and statistical analysis plan.
InvestingPro Insights
As BrainStorm Cell Therapeutics Inc. (NASDAQ: BCLI) embarks on its latest funding round, a closer examination of the company's financial health through InvestingPro reveals several critical metrics that investors should consider. The company's market capitalization stands at a modest $27.42 million, reflecting investor valuation of the firm's potential. Despite this, the company's P/E ratio is currently negative at -1.32, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at -1.76, indicating that the company is not currently generating profits.
Moreover, BrainStorm's operational challenges are reflected in its operating income, with an adjusted loss of $18.76 million over the same period. These figures are crucial for investors to gauge the company's performance and its ability to turn a profit in the near future, especially as it seeks additional capital. Additionally, the stock's price has experienced significant volatility, with a six-month price total return of 36.78% yet a steep one-year price total return at -81.55%, highlighting the risks associated with investing in the company.
InvestingPro Tips further illuminate the situation, noting that BrainStorm is quickly burning through cash and suffers from weak gross profit margins. With short term obligations exceeding liquid assets, the company's financial flexibility may be strained. Analysts contributing to InvestingPro do not anticipate the company will be profitable this year, and the stock has fared poorly over the last month. Investors looking to delve deeper into BrainStorm's financials and future outlook can find additional insights on InvestingPro, with a total of 9 more tips available to help inform their investment decisions.
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