BrainStorm raises $3.6 million through private placement financing

BrainStorm Cell Therapeutics Inc. (OTCQB: BCLI), a leading developer of adult stem cell technologies and therapeutics, announced today that it has entered into securities purchase agreements with certain institutional and other investors in connection with a private placement financing in reliance upon Regulation S. BrainStorm received gross proceeds of approximately $3.6 million resulting from the sale of shares at a purchase price of $0.28 per share at the closing of the transaction. The Company also issued warrants to the investors in the financing, with exercise prices of $0.28 and $0.50 per share, with expiration dates of one year and two years, respectively, after the closing of the financing. The warrants may only be exercised upon the investor's payment in cash of the exercise price, and, if exercised in full, the warrants would bring in an additional $8.2 million in cash to the Company.

“We are extremely pleased with the level of interest in this transaction by new investors, which for the first time include leading institutional investors”

Proceeds from the placement will be used to fund the Phase I/II clinical trial in patients with amyotrophic lateral sclerosis (ALS) as well as for general corporate purposes. Barak Capital Underwriting Ltd. acted as the lead underwriter for the offering.

"We are extremely pleased with the level of interest in this transaction by new investors, which for the first time include leading institutional investors," said Chaim Lebovits, President of BrainStorm. "The terms of this transaction reflect well on the direction of the company and the new investors' confidence in our strengthened management team, validated science, and the market opportunities for our adult stem cell platform. The new capital will allow us to fully fund our Phase I/II clinical trial for ALS at Hadassah Medical Center and should better position BrainStorm for future opportunities."

We would like to use this opportunity to also inform our shareholders that since February 23, 2011, due to various changes of OTC, the most reliable free stock quotation for BrainStorm Cell Therapeutics, Inc. (BCLI.QB), is available at http://www.otcmarkets.com/stock/bcli/quote.