BrainStorm Cell Therapeutics Prices $4M Registered Direct Offering

NEW YORK, June 27, 2024 -- BrainStorm Cell Therapeutics Inc. (NASDAQ: BCLI), a prominent developer of adult stem cell therapies for neurodegenerative diseases, has announced a new securities purchase agreement with an institutional investor. The agreement involves the sale of 11,111,111 shares of BrainStorm's common stock, or prefunded warrants, at a price of $0.36 per share. 

In addition, BrainStorm will issue unregistered warrants to purchase a total of 16,666,667 shares of common stock in a concurrent private placement. Each warrant has an exercise price of $0.3912 per share and will become exercisable six months after issuance, remaining valid for five years.

BrainStorm will also amend previously issued warrants, reducing the exercise price of 4,054,055 common stock warrants, currently held by the same institutional investor, to $0.3912 per share. The expiration date of these warrants will be extended to 2029.

The closing of this offering is anticipated to occur around June 28, 2024, pending standard closing conditions. Maxim Group LLC acts as the sole placement agent for this offering.

The securities in the registered direct offering are being sold under a "shelf" registration statement on Form S-3, which was declared effective by the U.S. Securities and Exchange Commission (SEC) on August 19, 2021. The offering is being made through a prospectus, including a prospectus supplement, which forms part of the effective registration statement. The final prospectus supplement and accompanying prospectus for the offering will be filed with the SEC and will be available on the SEC's website.

BrainStorm Cell Therapeutics Inc. is at the forefront of developing innovative therapies using autologous adult stem cells to treat severe neurodegenerative conditions. The company has exclusive rights to the NurOwn® technology platform, which produces autologous MSC-NTF cells. These cells have obtained Orphan Drug designation from the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA) for treating amyotrophic lateral sclerosis (ALS). 

BrainStorm has completed a Phase 3 trial on ALS, assessing the safety and efficacy of repeated administrations of autologous MSC-NTF cells. This trial was funded by a grant from the California Institute for Regenerative Medicine (CIRM) and additional support from the ALS Association and I AM ALS. Moreover, BrainStorm has concluded a Phase 2 open-label multicenter trial for progressive multiple sclerosis (MS) under an investigational new drug application. This trial was supported by a grant from the National MS Society (NMSS). 

BrainStorm's efforts in stem cell therapy aim to provide new hope for patients with neurodegenerative diseases, leveraging advanced biotechnological methods to develop effective treatments. The completion of these trials marks a significant milestone in their ongoing quest to bring innovative solutions to market and improve the quality of life for individuals suffering from these debilitating conditions.

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