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Brainstorm Cell Therapeutics Inc. (NASDAQ:BCLI), a biotechnology company focused on developing innovative autologous stem cell therapies for highly debilitating neurodegenerative diseases, has been granted an extension by the Nasdaq Hearings Panel to regain compliance with the exchange’s listing requirements by June 30, 2025. The company, currently valued at approximately $8 million, has seen its stock decline by 38% year-to-date, trading at $1.40. According to InvestingPro analysis, the company’s financial health score is rated as WEAK, with concerning liquidity metrics.
The New York-based company had previously reported non-compliance with Nasdaq’s minimum Market Value of Listed Securities (MVLS) requirement. In response, Brainstorm presented a compliance plan during a hearing on February 25, 2025. This plan includes achieving a minimum stockholders’ equity of $2.5 million, which would allow the company to meet the Nasdaq Listing Rule 5550 in lieu of the MVLS Requirement, and executing capital-raising initiatives to reach the equity threshold. InvestingPro data reveals the company’s current ratio stands at just 0.05, indicating significant challenges in meeting short-term obligations.
The extension is contingent upon Brainstorm’s fulfillment of certain conditions, such as demonstrating progress towards the capital raise outlined in their plan and providing public disclosure of specific information before the extension deadline. Brainstorm has expressed its intention to meet these conditions within the stipulated timeframe.
While Brainstorm is actively pursuing various strategies to complete its capital-raising plan, there is no assurance that it will be successful in meeting the minimum stockholders’ equity requirement by the extension date.
This development comes as part of Brainstorm’s ongoing efforts to maintain its listing on the Nasdaq Capital Market. The company’s forward-looking statements indicate its commitment to regaining compliance and achieving its capital-raising objectives, although these statements involve certain risks and uncertainties that could affect actual outcomes.
The information contained in this article is based on a press release statement from Brainstorm Cell Therapeutics Inc. and does not include any assumptions or predictions by the author.
In other recent news, BrainStorm Cell Therapeutics Inc. has been granted an extension by the Nasdaq Hearings Panel until June 30, 2025, to meet continued listing standards. This extension follows BrainStorm’s appeal against a previous Nasdaq delisting decision, which was due to the company’s failure to meet the Minimum Value of Listed Securities (MVLS) requirement. The appeal, filed after BrainStorm missed the January 14, 2025, deadline to regain compliance, temporarily stays the delisting process. During a hearing scheduled for February 25, 2025, BrainStorm plans to present its compliance plan to the Nasdaq Hearings Panel. As part of its strategy, BrainStorm is initiating a Phase 3b study of its NurOwn® therapy for ALS and exploring strategic partnerships. The company emphasizes its commitment to enhancing shareholder value and solidifying its financial position. BrainStorm’s proprietary technology, NurOwn®, has received Orphan Drug designation for ALS from both the FDA and EMA. Additionally, the company is investigating exosome technology for potential applications in neurodegenerative and respiratory diseases.
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