16.00% to its price. Along with the price jump, the traded volume of BCLI has been rising progressively, exceeding 1 million shares.The only reasonable explanation on the current high trade appears to be the positive news on BrainStorm. On Monday, the company reported that it has just received an approval to begin the clinical trial of its adult stem cell therapy in patients with ALS.
According to the announcement, BrainStorm is the first company to receive clearance from the Israeli Ministry of Health for a differentiated stem cell-based therapy. Still, the trial is to begin after the validation of sterility tests and screening of patients, and investors should expect additional information later.
Obviously, traders have been encouraged by the optimistic news and BCLI stock started its up move.[BANNER]
Brainstorm Cell Therapeutics is engaged in developing stem cell therapeutic products based on technologies enabling the differentiation of bone marrow stem cells to neural-like cells. Apart from the news on Monday, the company has not released any announcements recently, except its financial report in mid-August.
According to it, BCLI has not generated any revenues and has suffered an increasing operating loss. The company has more liabilities than assets on its balance sheet and apparently doesn’t have sufficient cash to cover the losses.
Since its inception, BrainStorm has financed its operations through sales of common stocks, warrants and convertible promissory notes. Based on the present financial condition, the company needs additional capital to meet its anticipated expenses.
The management team claims that as BrainStorm is out of cash it may have to cease operations and states further: “Even if we obtain funding sufficient to continue functioning as a going concern, we will be required to raise a substantial amount of capital in the future in order to reach profitability and to complete the commercialization of our products”.
