Brainstorm announces private equity financing of $250,000 with single
institutional investor
New york & petach tikvah, israel--(business wire)--brainstorm cell therapeutics inc. (otcbb: bcli), a leading developer of adult stem cell technologies and therapeutics, announced today that it has signed a $250,000 common stock purchase agreement with a single accredited investor. under the terms of the agreement, brainstorm will sell 833,333 common shares at $0.30 per share (representing a 20% premium to the prior day’s closing price of brainstorm’s common stock) for gross proceeds of $250,000 together with a 12-month warrant to purchase up to 641,026 shares of brainstorm’s common stock at $0.39 per share (representing a 56% premium to the prior day’s closing price of brainstorm’s common stock). “2011 is off to an exciting start for brainstorm and its shareholders,” said chaim lebovits, president of brainstorm. “with the proceeds from this financing, recent funding from israel’s office of the chief scientist, and new additions to our management team and board of directors, we are well-positioned to enter clinical trials with our autologous nurown™ stem cell therapy, which could represent a new treatment paradigm for patients with amyotrophic lateral sclerosis (als) and other neurological disorders. we look forward to building on our recent achievements and expect 2011 to be a transformational year for brainstorm.” the securities sold in the private placement have not been registered under the securities act of 1933 and may not be resold absent registration under or exemption from such act. this press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities. this press release is being issued pursuant to and in accordance with rule 135c under the securities act of 1933. about amyotrophic lateral sclerosis amyotrophic lateral sclerosis (als), often referred to as lou gehrig's disease, is a progressive neurodegenerative disease that affects nerve cells in the brain and the spinal cord. according to the als association, approximately 5,600 people in the u.s. are diagnosed with als each year and it is estimated that as many as 30,000 americans may have the disease at any given time. the financial cost to families of patients is exceedingly high, and it is estimated that in the advanced stage, care can cost an average of $200,000 per year, which represents more than a $6 billion cost to the healthcare system. about nurown™ brainstorm’s core technology, nurown™, is based on the scientific achievements of professor eldad melamed, former head of neurology, rabin medical center, and tel-aviv university, and a member of the scientific committee of the michael j. fox foundation for parkinson's research, and professor daniel offen, head of the neuroscience laboratory, felsenstein medical research center (fmrc) at the tel-aviv university. the nurown™ technology processes adult human mesenchymal stem cells that are present in bone marrow and are capable of self-renewal as well as differentiation into many other cell types. the research team is among the first to have successfully achieved the in vitro differentiation of adult bone marrow cells (animal and human) into astrocyte-like cells capable of releasing neurotrophic factors, including glial-derived neurotrophic factor (gdnf). the ability to induce differentiation into astrocyte-like cells along with intramuscular or intrathecal (or other) delivery makes nurown™ technology highly attractive for treating als and parkinson’s disease as well as ms and spinal cord injury. brainstorm’s stem cell therapy contains human mesenchymal stromal cells induced to differentiate into astrocyte-like cells secreting neurotrophic factors by means of a specific differentiation-inducing culture medium. about brainstorm cell therapeutics, inc. brainstorm cell therapeutics inc. is an emerging company developing adult stem cell therapeutic products, derived from autologous (self) bone marrow cells, for the treatment of neurodegenerative diseases. the company holds rights to develop and commercialize the technology through an exclusive, worldwide licensing agreement with ramot at tel aviv university ltd., the technology transfer company of tel-aviv university. for more information, visit the company’s website at www.brainstorm-cell.com. safe harbor statement statements in this announcement other than historical data and information constitute "forward-looking statements" and involve risks and uncertainties that could cause brainstorm cell therapeutics inc.'s actual results to differ materially from those stated or implied by such forward-looking statements. the potential risks and uncertainties include risks associated with brainstorm's limited operating history, history of losses; minimal working capital, dependence on its license to ramot's technology; ability to adequately protect the technology; dependence on key executives and on its scientific consultants; ability to obtain required regulatory approvals; and other factors detailed in brainstorm's annual report on form 10-k and quarterly reports on form 10-q available at http://www.sec.gov. the company does not undertake any obligation to update forward-looking statements made by us.
