Brainstorm Cell Therapeutics faces Nasdaq delisting

Published 01/16/2025, 05:32 AM
BCLI
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Brainstorm Cell Therapeutics Inc. (NASDAQ:BCLI), a biotechnology company specializing in biological products with a current market capitalization of just $11.86 million, has received notification from the Nasdaq Stock Market LLC that it has failed to meet the minimum Market Value of Listed Securities (MVLS) requirement for continued listing on The Nasdaq Capital Market.

According to InvestingPro data, the company's stock has declined over 67% in the past six months. The company was previously given until January 14, 2025, to regain compliance with the MVLS requirement, which mandates a minimum market value of $35 million.

On Wednesday, Brainstorm was formally notified that it did not meet the MVLS threshold by the deadline. InvestingPro analysis reveals the company is quickly burning through cash, with a concerning current ratio of 0.05. As a result, the company's common stock is subject to delisting from The Nasdaq Capital Market, effective from the opening of business on January 24, 2025, unless Brainstorm appeals the decision. The company has until January 22, 2025, to file an appeal, which would stay the delisting pending a final decision by Nasdaq.

Brainstorm, headquartered in New York and incorporated in Delaware, has indicated its intention to appeal the delisting notice. With an overall Financial Health Score rated as WEAK by InvestingPro (subscribers gain access to 8 additional key insights and comprehensive financial analysis), there is no assurance that the appeal will be successful and that the company's common stock will remain listed on The Nasdaq Capital Market.

The company's failure to comply with Nasdaq's MVLS Requirement comes despite the prior warning and the grace period provided to rectify the situation. The potential delisting could have significant implications for the company's stock liquidity and investor perception, particularly given its negative EBITDA of -$13.05 million in the last twelve months.

In other recent news, BrainStorm Cell Therapeutics has made significant strides in its business operations. The company has secured a patent for its exosome technology, which is expected to extend protection until April 10, 2039. This patent underlines BrainStorm's commitment to advancing novel technologies for respiratory and neurodegenerative diseases.

The company reported a net loss of $2.5 million in Q2 2024 but is ready to initiate a Phase 3b trial for its ALS treatment, NurOwn. In terms of financial analysis, Maxim Group adjusted its price target for BrainStorm shares to $10 from $30, maintaining a Buy rating. This adjustment reflects the company's progress with NurOwn.

In a bid to align its corporate structure with its growth strategy, BrainStorm implemented a one-for-fifteen reverse stock split, expanded its stock incentive plans by 8 million shares, and increased the number of authorized shares of common stock from 100 million to 250 million. The company is also in talks with potential commercial manufacturing partners and is actively seeking non-dilutive funding options.

Lastly, Brightman Almagor Zohar & Co., part of the Deloitte Global Network, has been ratified by stockholders as the independent registered public accounting firm for the fiscal year ending December 31, 2024. These developments are indicative of BrainStorm's continuous efforts to enhance its operations and business strategies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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