Brainstorm Cell Therapeutics Inc (OTC:BCLI) has been climbing up progressively over the past days. Yesterday, the stock BCLI_chart1.pngmoved higher and hit the heavy gain by trading over 1 million shares for the day. However, what’s behind the climb is yet to be revealed.

The most reasonable explanation on the up move appears to be the latest news by Brainstorm. During the past weeks, the company has released some positive announcements on its business, including an FDA drug designation and a private equity financing with an institutional investor. According to the announcement, BCLI will sell 833,333 common shares at $0.30 per share for gross proceeds of $250,000 together with a 12-month warrant to purchase up to 641,026 shares of BrainStorm’s common stock at $0.39 per share.

Apart from this news, Brainstorm has issued an initial statement of beneficial ownership of securities, according to which Mr. Adrian Harel, COO of BCLI, has acquired a certain amount of the company’s shares.

Apparently, all recent news has encouraged traders and the company’s stock grabbed the climb. Though, if it is a new bullish trend, it is yet too soon to be concluded.

BrainStorm Cell Therapeutics is a developer of stem cell technologies to provide treatments for currently incurable neurodegenerative diseases. Despite the fact that it has received an FDA approval for its drug candidate, the company still expect to begin human clinical trials, projected for the first half of this year. And until the trials are made, the results will not be seen.[BANNER]

BrainStorm_logo1.jpgRegarding the financial results, by end-September Brainstorm is out of revenues and its liabilities are about 50% higher than the total assets. Meanwhile, the deficit accumulated during the development stage has increased as compared to the year before, and the stockholders’ deficiency has not been covered.

Currently, BCLI relies on its drug approval and equity financing, however, its 10-Q report states that the company “does not expect to earn revenues from operations until 2013” and  that since inception it has incurred operating expenses of approximately $14 million and over $22 in research and development costs. Moreover, Brainstorm is still in a development stage and if it doesn’t succeed to generate additional capital, the company may need to cease operations.