Aug 24 2009
BrainStorm Cell Therapeutics Inc. (OTCBB: BCLI), a leading developer of adult stem cell technologies and therapeutics, announced today that the company has secured the funding required to complete pre-clinical trials underway for the treatment of ALS (Amyotrophic Lateral Sclerosis, also known as Lou Gehrig’s disease). The company expects to begin Phase I clinical studies in 2010.
The new funding includes both a prestigious grant from the Israeli government’s Office of the Chief Scientist (OCS) as well as private investment.
“We are very gratified to receive these financial votes of confidence in our breakthrough stem cell technology. The new funding will enable us to complete our pre-clinical studies in ALS and meet our goal of beginning clinical studies in the coming year,” said Rami Efrati, CEO of BrainStorm.
The non-equity OCS grant amounts up to $450,000 and marks the third consecutive year in which BrainStorm has been selected as a recipient. The company previously was awarded OCS grants totaling $798,000. BrainStorm’s royalty obligations to the OCS are capped at the amount of the grant received from the OCS.
In addition, ACCBT Corporation, a private company investing in biotechnology, has announced that it will implement an additional investment of about $1 million in BrainStorm. ACCBT is under the control of Chaim Lebovits, BrainStorm’s President, and has previously invested more than $4 million in the company. The new funding will comprise monthly tranches of $50,000 or more as of August 2009. In return for its investment, ACCBT will receive shares of common stock from the company at a price of $0.12 per share and warrants for $0.29. (Share price as of closing of August 21 is $0.061)
“The promising study results we have seen so far make me confident that the company, with G-D's help, will be able to rapidly progress to a therapy for the unmet medical need of devastating neurodegenerative conditions like ALS,” said Mr. Lebovits.
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