Full Press Release Details
Cell Therapeutics Enters into
for up to $5 Million Equity Financing
Lebovits Appointed President
Cell Therapeutics (OTCBB: BCLI), a leading developer of adult stem cell
products, announced today that it has entered into an agreement to raise up
$5 million from ACCBT Corporation, a company under the control of Mr. Chaim
investments by ACCBT Corporation will be made in installments, providing the
Company with the working capital resources that it needs as it operates its
business, advances and further develops its technologies and research. Assuming
ACCBT Corporation completes all of the contemplated investments in the Company,
ACCBT Corporation will acquire and own a majority of the outstanding common
stock and warrants to purchase common stock of the Company. The closing of
first investment installment is subject to the Company first satisfying certain
conditions, including customary closing conditions, which are expected to be
completed by August 30, 2007. Subsequent installments are subject to discretion
of ACCBT corporation .
Company also announced that it has appointed Mr. Chaim Lebovits as its President
to lead the Company. Mr. Lebovits is an internationally known and respected
businessman and leader, and the owner of ACC holdings, a holding company acting
in the field of gas and oil development fields, gold mining and infrastructure.
ACC has three subsidiaries, (i) C&L, which focuses on oil production in West
Africa and operates an oil and gas field with proven reserves of 20 million
barrels of oil and an option to discover up to an additional 100 million
barrels of oil; (ii) ACC, which holds 10 permits for gold exploration in
Burkina Faso; and (iii) ACCBT, which focuses on new and emerging
biotechnologies. Mr. Lebovits has been at the forefront of mining and natural
resource management in the African region for close to a decade. He has spent
years leading the exploration and development of resources on behalf of
world-leading firms. In this capacity he has negotiated numerous,
highly-successful deals on behalf of both African governments and global mining
very proud to have Mr. Chaim Lebovits join our management team, as he is a
well-respected and experienced business leader and entrepreneur," said
Drucker, BrainStorm's Chief Operating Officer. "The new funding will help us
accelerate our safety trials for Parkinson's disease as well as advance our
other adult stem cell therapy programs aimed at ALS, Multiple Sclerosis and
other neurodegenerative disorders."
Lebovits commented, "The internationally-acclaimed scientific team at BrainStorm
has achieved remarkable results in developing a cutting-edge stem cell
technology and is well on its way to meeting the unmet need for therapies
targeting devastating medical disorders with multi-billion market potential.
am looking forward to being a part of this dynamic organization."
this year BrainStorm announced the initiation of a
trial using the NurOwn technology in a primate animal model of Parkinson's
disease. That study is being
carried out in collaboration with the Center for Applied Medical Research (CIMA)
of the University of Navarra in Pamplona, Spain.
addition to moving ahead with the Company's Parkinson's disease program,
BrainStorm is also progressing with pre-clinical trials applying the Company's
stem cell technology to the treatment of ALS and Multiple Sclerosis.
BrainStorm Cell Therapeutics Inc.
Cell Therapeutics Inc. is an emerging company developing adult stem cell
therapeutic products, derived from autologous (self) bone marrow cells, for
treatment of neurodegenerative diseases. The NurOwn(TM) patent pending
technology is based on discoveries made by the scientific team led by prominent
neurologist Professor Eldad Melamed, Head of Neurology at Rabin Medical Center,
and expert cell biologist Dr. Daniel Offen, Head of the Neuroscience Laboratory
at the Felsenstein Medical Research Center of Tel-Aviv University. The
technology allows for the differentiation of bone marrow-derived stem cells
functional neurons and astrocytes, as demonstrated in animal models. The Company
holds rights to develop and commercialize the technology through an exclusive,
worldwide licensing agreement with Ramot at Tel Aviv University Ltd., the
technology transfer company of Tel-Aviv University. The Company's initial focus
is on Parkinson's disease, although its technology has promise for treating
several others diseases including MS, ALS, Huntington's disease and
cells are non-specialized cells with a remarkable potential for both
self-renewal and differentiation into cell types with a specialized function,
such as muscle, blood or brain cells. Stem cells can be harvested from fetal
embryonic tissue or from adult tissue reservoirs such as bone marrow. Use of
embryonic stem cells is at the center of significant ethical and moral debate.
In contrast, use of adult stem cells does not provoke the same moral or legal
controversy. Stem cell therapy aims to "cure" disease by replacing the diseased
cells with healthy cells derived from stem cells. This approach has the
potential to revolutionize medicine and, if successful, the implied commercial
opportunities are great. Currently, scientists are exploring both embryonic
cells (ESC) and adult stem cells (ASC) as the potential basis for multiple
in this announcement other than historical data and information constitute
"forward-looking statements" and involve risks and uncertainties that could
cause BrainStorm Cell Therapeutics Inc.'s actual results to differ materially
from those stated or implied by such forward-looking statements, including
BrainStorm's ability to complete the financings described in this press release
and its ability to satisfy all of the closing conditions. The potential risks
and uncertainties include, among others, risks associated with BrainStorm Cell
Therapeutics Inc.'s limited operating history, history of losses and expectation
to incur losses for the foreseeable future; limited cash resources and its
to raise additional capital to execute on its business plan and continue
operations; dependence on its license to Ramot's technology and ability to
its funding and payment obligations included in such license agreement; ability,
together with its licensor, to adequately protect the NurOwn technology;
dependence on key executives and on its scientific consultants; ability to
identify, negotiate and successfully implement strategic partnering
relationships; ability to complete clinical trials successfully and to obtain
required regulatory approvals; competition with companies, some of which have
greater resources and experience in developing and obtaining regulatory approval
for treatments in BrainStorm Cell Therapeutics Inc.'s market; the limited public
trading market for BrainStorm Cell Therapeutics Inc.'s stock which may never
develop into an active market; and other factors detailed in BrainStorm Cell
Therapeutics Inc.'s annual report on Form 10-KSB, quarterly reports on Form
10-QSB, current reports on Form 8-K and other filings with the Securities and
Exchange Commission available at http://www.sec.gov/ or by request to the
Company. The Company does not undertake any obligation to update forward-looking