News Column

BrainStorm Cell Therapeutics Raises $10.5 Million in Private Placement Financing

June 30, 2014

By a News Reporter-Staff News Editor at Clinical Trials Week -- BrainStorm Cell Therapeutics Inc. (OTCQB: BCLI), an innovative developer of adult stem cell technologies and Central Nervous System therapeutics, announced that it has entered into definitive agreements with a group of investors, including several healthcare-focused funds, in connection with a private placement of common stock and warrants to purchase common stock. Upon the closing of this financing, BrainStorm will receive gross proceeds of $10.5 million, resulting from the issuance and sale of 42.0 million shares of common stock at a price per share of $0.25, a 15% discount to the 30 day volume-weighted average price of $0.294. The purchasers will also receive warrants to purchase up to 42.0 million shares of common stock at an exercise price of $0.348 per share. The warrants are exercisable immediately upon closing of the private placement and have a term of three years.

The financing, which is expected to close on or about June 18, 2014, is subject to the satisfaction of certain customary closing conditions contained in the securities purchase agreement. In connection with this financing, BrainStorm entered into a registration rights agreement pursuant to which BrainStorm agreed to file a resale registration statement for the common stock and common stock underlying the warrants within 30 days.

BrainStorm intends to use the aggregate net proceeds of the financing primarily for working capital and general corporate purposes, including our recently launched phase 2 amyotrophic lateral sclerosis clinical trial.

Maxim Group LLC acted as sole placement agent for the financing.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. The securities offered and sold in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration under the Securities Act and applicable state securities laws (see also Medical, Healthcare).

Keywords for this news article include: Medical, Healthcare.

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Source: Clinical Trials Week

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