BCLI up .12 (25%) to .59 on 6 X vol. Today's pr.:
BrainStorm Cell Therapeutics Enters Into Agreement for up to $5 Million Equity Financing
Tuesday July 3, 8:00 am ET
Chaim Lebovits Appointed President
NEW YORK & PETACH TIKVAH, Israel--(BUSINESS WIRE)--BrainStorm Cell Therapeutics (OTCBB:BCLI - News), a leading developer of adult stem cell products, announced today that it has entered into an agreement to raise up to $5 million from ACCBT Corporation, a company under the control of Mr. Chaim Lebovits.
The 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 the 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 .
The 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 concerns.
"We are very proud to have Mr. Chaim Lebovits join our management team, as he is a well-respected and experienced business leader and entrepreneur," said Yoram 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."
Chaim 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. I am looking forward to being a part of this dynamic organization."
Earlier this year BrainStorm announced the initiation of a safety 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.
In 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. |
