Brainstorm Cell to use funding for ALS clinical trials

Investors Jackie Ben-Zakan and Avraham Nanikashvili and Brainstorm Cell president Chaim Lebovits are also partners in the Med Ashdod gas exploration license.

Adult stem cell technologies and therapeutics developer Brainstorm Cell Therapeutics Ltd. (Bulletin Board:BCLI) last week signed agreements with three investors, each of whom will invest $500,000 in the company for a total of $1.5 million, in exchange for two million shares each at $0.25 per share. Each investor will also get one million warrants with an exercise price of $0.50 per share, for a total of $1.5 million, if exercised in full.

The company did not disclose the name of the investors, but sources inform ''Globes'' that they include Israel Financial Levers Ltd. (TASE:LVR) controlling shareholders Jackie Ben-Zakan and Avraham Nanikashvili.

Financial Levers is a real estate company, but, earlier this month, Ben-Zakan and Nanikashvili teamed up with Brainstorm Cell president and controlling shareholder Chaim Lebovits, to acquire the Med Ashdod gas exploration license. This partnership is also behind the investment in Brainstorm Cell.

Brainstorm Cell added that Lebovits' company ACCBT Corporation will also invest its remaining commitment of approximately $500,000 in the company. Together, these investments provide BrainStorm with the necessary funds to conduct its upcoming Phase I/II clinical trials for Amyotrophic lateral sclerosis (ALS, or Lou Gehrig's disease).

Brainstorm Cell's share price rose 15.1% on Friday to $0.42, giving a market cap of $30 million.

Published by Globes [online], Israel business news - - on February 21, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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