BrainStorm Cell Therapeutics Moves Forward with Stock Split Plan

BrainStorm Cell Therapeutics Announces Reverse Stock Split

BrainStorm Cell Therapeutics Inc. (NASDAQ:BCLI) is stepping into a significant phase with its recent announcement of a one-for-fifteen reverse stock split of its common stock. This pivotal decision reflects the board's strategic move aimed at enhancing the market perception of the company's performance amidst significant operational changes.

Details of the Reverse Stock Split

The reverse stock split will officially take place, making the common stock trading adjusted for the split as markets open. This means that for every fifteen shares held by a shareholder prior to the effective date, they will receive one share post-split. In this restructuring, BrainStorm has clarified that no fractional shares will be issued, maintaining a straightforward transaction process for its investors.

Compliance with NASDAQ Requirements

This reverse stock split is a crucial step for BrainStorm as it works to adhere to NASDAQ's minimum bid price requirement. The company has indicated that this move aligns with its long-term goals and the interests of its shareholders, providing a promising outlook for renewed compliance and market activity.

Changes in Authorized Shares

BrainStorm has also taken significant strides towards improving its governance and operational structure. Noteworthy amendments have been made to the company’s stock incentive plans and certificate of incorporation. The shared pool of its stock has increased by 8 million shares, bringing the total to 13.6 million shares under the 2014 Stock Incentive Plan and the 2014 Global Share Option Plan. Additionally, the number of authorized shares of common stock has seen a substantial rise from 100 million to 250 million shares.

Future Focus on Trials and Cost Management

Amidst these developments, BrainStorm is gearing up for its Phase 3b clinical trial of NurOwn, aimed at treating Amyotrophic Lateral Sclerosis (ALS), slated for late next year or early the following year. The company is committed to reducing its production costs, despite facing a net loss of $2.5 million in Q2 2024. The leadership continues to focus on exploring non-dilutive funding avenues and is actively engaging with potential partners for commercial manufacturing initiatives.

Independent Accounting Firm Appointment

In another significant move, BrainStorm's stockholders have recently ratified the appointment of Brightman Almagor Zohar & Co., which is a member of the Deloitte Global Network, as the independent public accounting firm for the fiscal year ending December 31, 2024. This underscores BrainStorm’s commitment to maintaining robust financial oversight and transparency.

Conclusion

BrainStorm Cell Therapeutics is navigating an important chapter in its journey, with decisive actions that reflect its resilience and forward-thinking strategy. As the company implements the reverse stock split and heads into critical trials, shareholders have every reason to keep a close eye on its progress. Staying informed about such strategic movements is crucial for stakeholders seeking to understand the potential impacts on investment and company growth moving forward.

Frequently Asked Questions

What is a reverse stock split?

A reverse stock split is a corporate action that consolidates the number of existing shares into fewer ones, which can increase the stock price proportional to the decrease in total shares outstanding.

Why did BrainStorm decide to do a reverse stock split?

BrainStorm's decision was primarily aimed at regaining compliance with NASDAQ's minimum bid price requirement and enhancing shareholder value.

What will happen to my shares after the reverse stock split?

Shareholders will see their total share count reduced, but the value of their holdings will remain proportional after the split adjustment.

How will the reverse stock split affect the trading of BCLI shares?

The trading of BCLI shares will reflect the new share structure after the effective date of the reverse stock split, ensuring continuity in the market.

What is the expected timeline for BrainStorm’s ALS trial?

The Phase 3b trial of NurOwn for ALS is set to commence in late 2024 or early 2025, marking a significant milestone in the company's research initiatives.

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