Full Press Release Details
BrainStorm Completes $1.5 Million Private Placement
- Financing to be used to Establish its Development Program
Tel Aviv, Israel - March 1, 2005 - BrainStorm Cell Therapeutics (OTC BB:
BCLI.OB), an emerging company in stem cell therapeutics for neurodegenerative
diseases, today announced that the Company has completed a final closing of its
seed private placement, under which it raised approximately $1.5 million in
aggregate. Previous closings under this private placement, the terms of which
are detailed in a Form 8-K filed with the Securities and Exchange Commission,
occurred in October and November of 2004.
As disclosed by the Company in November, the funding provided the Company with
the requisite capital to meet its fund raising obligations under the technology
license agreement with Ramot at Tel Aviv University. Based on this license, the
Company is developing its proprietary NurOwnTM platform, as an autologous cell
therapy for neurodegenerative diseases, such as Parkinson's Disease, Multiple
Sclerosis and Alzheimer's Disease. The funding will also be used to cover costs
of extending the Company's management base, recruiting senior scientific
personnel, and building laboratory facilities for its research & development
Brainstorm concurrently announced the launch of its website
"The seed funding mechanism lays the foundation for initiating and accomplishing
our immediate goals, " stated Dr. Yaffa Beck, CEO. "We are now exploring
longer-term financing mechanisms, so that we can spearhead preclinical research
and development with a view towards clinical trial activities. We are excited
that the stem cell area of life sciences, in which we operate, is experiencing
explosive growth and significant recognition, and we look forward to executing
on our vision of bringing quality solutions for debilitating incurable diseases"
About BrainStorm Cell Therapeutics Inc.
BrainStorm Cell Therapeutics Inc. is an emerging company developing neural-like
stem cell therapeutic products, NurOwn(TM), based on autologous bone marrow
derived stromal cells, for treatment of neurodegenerative diseases. NurOwn(TM)
patent pending technology is based on discoveries made by the team of prominent
neurologist, Prof. Eldad Melamed, Head of Neurology at Rabin Medical Center, and
expert cell biologist Dr. Daniel Offen, at the Felsenstein Medical Research
Center of Tel-Aviv University, enabling the differentiation of bone marrow
derived stem cells into functional neurons, 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 developing treatments for Parkinson's Disease.
About Stem Cell Therapy
Stem 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 may be sourced from fetal or
embryonic tissue or from adult tissue reservoirs such as bone marrow. Use of
embryonic stem cells, has become the center of significant ethical and moral
debate. In contrast, use of adult stem cells does not face 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, both embryonic stem cells (ESC)
and adult stem cells (ASC) are being explored as the potential basis for
multiple cell therapy products.
About Parkinson's Disease
Parkinson's Disease (PD), which was first described by James Parkinson in 1817
as "the shaking palsy", is a chronic, progressive neurodegenerative disorder,
affecting the brain cells responsible for production of dopamine. The symptoms
include tremors, rigidity, slowness of movement and impaired balance. Over four
million people in the developed world, including as many as 1.5 million
Americans, mainly over the age of 65, are diagnosed with PD. That figure is
predicted to rise by 10% by 2010. Pharmaceutical treatments of PD with an
estimated combined annual market value of $4 billion, are insufficient to meet
patient needs. The search for more effective treatments continues.
Safe Harbor Statement:
Statements 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. actual results to differ
materially from those stated or implied by such forward-looking statements. The
potential risks and uncertainties include, among others, risks associated with
BrainStorm Cell Therapeutics Inc. limited operating history, history of losses
and expectation to incur losses for the foreseeable future; need to raise
additional capital to execute on its business plan; dependence on its license to
Ramot's technology and ability to meet its funding and payment obligations
included in such license agreement; ability, together with its licensor, to
adequately protect the NurOwn(TM) technology; dependence on key executives who
have recently joined the company 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. market; the limited public
trading market for BrainStorm Cell Therapeutics Inc. stock which may never
develop into an active market; and other factors detailed in BrainStorm Cell
Therapeutics Inc. annual report on From 10-KSB, quarterly reports on Form
10-QSB, current reports on From 8-K and other filings with the Securities and
Exchange Commission available at http://www.sec.gov/ or by request to the