BrainStorm faces delisting due to market value deficits By Investing.com

BrainStorm Cell Therapeutics Inc. (NASDAQ:BCLI), a biotechnology company focused on developing innovative autologous stem cell therapies for debilitating neurodegenerative diseases, was notified by Nasdaq that its market value of listed securities (MVLS) has fallen below the minimum requirement for continued listing on the Nasdaq Capital Market.

The Delaware-incorporated and New York-based company received the deficiency notice on Thursday, which shows that its MVLS remained below the $35 million threshold set out in Nasdaq Listing Rule 5550(b)(2) from June 2, 2024, through July 17, 2024. Despite this setback, BrainStorm’s common stock will continue to trade under the symbol “BCLI.”

BrainStorm now has a 180-day compliance period ending on January 14, 2025, to correct this deficiency. To regain compliance, the company’s MVLS must be $35 million or more for at least ten consecutive business days prior to the end of the compliance period.

If BrainStorm fails to comply with the MVLS requirement by January 14, 2025, it may receive a delisting notice from Nasdaq. The company could appeal such a decision, but there is no guarantee that an appeal would be successful.

In response to the notice, BrainStorm has expressed its intention to actively monitor its MVLS and take appropriate actions to restore compliance. However, the company has cautioned that there is no guarantee of compliance with the listing criteria.

The forward-looking statements included in the Company’s announcement reflect BrainStorm’s current expectations and assumptions regarding its efforts to regain compliance. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

This news follows BrainStorm’s most recent annual report, filed with the SEC on April 1, 2024, which outlines the company’s business strategies and risk factors that investors should consider.

Investors and shareholders are closely following BrainStorm’s performance and the Company’s efforts to maintain its listing on Nasdaq. This development is based on the Company’s recent SEC filing and does not contain any speculative or promotional content.

In other recent news, BrainStorm Cell Therapeutics Inc. secured approximately $4 million through a registered direct offering and a concurrent private placement. The company has advanced its proprietary NurOwn® technology platform, which is being used in clinical trials for neurodegenerative diseases such as amyotrophic lateral sclerosis (ALS) and progressive multiple sclerosis (MS).

In addition, BrainStorm has reached consensus with the FDA on chemistry, manufacturing and controls for its Phase 3b clinical trial of NurOwn®. This development represents a significant step following the FDA’s agreement for Special Protocol Review in 2024.

On the leadership side, BrainStorm has appointed Dr. Hartoun Hartounian as its new Executive Vice President and Chief Operating Officer. Hartounian brings over 30 years of experience in the biopharmaceutical industry to the role.

In addition, BrainStorm has successfully reinstated Nasdaq’s minimum market value requirements, eliminating potential delisting concerns. The company’s experimental cell therapy, NurOwn, has shown promising results, impacting key biomarkers related to ALS, as demonstrated by the publication of Phase 3 biomarker data.

Finally, the FDA has proposed planning a Phase 3b trial for NurOwn® in ALS patients and has specified the clinical trial protocol and statistical analysis plan. These are the latest developments in BrainStorm’s ongoing efforts to develop potential treatments for neurodegenerative diseases.

InvestingPro Insights

As BrainStorm Cell Therapeutics Inc. attempts to maintain its listing on the Nasdaq, recent financial metrics from InvestingPro give a clearer picture of the company’s status. With a market cap of just $27.61 million, BrainStorm is below the Nasdaq threshold of $35 million. The company’s performance over the past year has been turbulent, with a significant 79.18% price decline reflecting investor concerns and the company’s announcement of its MVLS deficiency.

Tips from InvestingPro show that BrainStorm is burning cash quickly and has not been profitable over the past twelve months, which is consistent with its reported adjusted operating income showing significant losses of $18.76 million. In addition, the company’s earnings outlook remains challenging with a negative P/E ratio of -1.77. Despite these headwinds, BrainStorm has seen a big share price run over the past six months and offers a glimmer of hope with a 34.32% return over that period.

For those who want to dive deeper into BrainStorm’s finances and future prospects, InvestingPro offers additional insights. There are 9 more InvestingPro tips for BrainStorm that can be a valuable resource for investors considering this stock. To access these tips and more detailed analysis, use the coupon code PRONEWS24 to get up to 10% off a Pro annual subscription and a Pro+ annual or two-year subscription.

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