BrainStorm Enters Into Warrant Exercise Deal For Proceeds Of About $13 Mln

(RTTNews) - Biotechnology company BrainStorm Cell Therapeutics Inc. (BCLI), said it has entered into a warrant exercise agreement with certain holders of warrants issued in the June 13, 2014 private placement.

These holders have agreed to exercise their warrants in full, for a total of about 2.5 million shares of common stock, at an exercise price of $5.22 per share. This represents a 4 percent premium to the closing price of $5.03, and will generate gross cash proceeds of about $13 million.

BrainStorm said that for each warrant exercised, it will issue 1.5 new warrants to the holders to purchase unregistered shares of common stock at an exercise price of $6.50. The company will file a registration statement covering the resale of the additional shares of common stock underlying the newly issued warrants.

BrainStorm's CEO Tony Fiorino, said, "We believe this is a great transaction for BrainStorm, as it allows us to effectively raise capital at a premium to our closing price. We deeply appreciate the confidence placed in the company and our programs by the investors who participated in our June 2014 financing and have chosen to further their investment in the company."