Company Resolves Contractual Defaults With Technology Licensor and Lender
BrainStorm Cell Therapeutics Inc. (OTCBB:BCLIStock Message Board), a leading developer of adult stem cell technologies and therapeutics, is pleased to announce that it has come to a restructured research and license agreement with Ramot at Tel Aviv University with respect to payment obligations for its technology license, and that the Double U Fund, a lender to the Company, has also come to an agreement over funds owed to it by BrainStorm. The waiver and release from Ramot ensures that BrainStorm’s technology license is securely held by BrainStorm, and the resolution to the Double U Fund debt obligation improves BrainStorm’s financial condition.
“In the last month, BrainStorm has made significant progress and improvements to its financial condition,” commented David Stolick, the BrainStorm’s Chief Financial Officer. “From electing Chaim Lebovits as president, Moshe Lion to the Board of Directors to obtaining a funding commitment for $5 million to winning a grant from Israel's prestigious Chief Scientist Office and now by resolving and restructuring payment and debt obligations that eliminate some significant risks BrainStorm was facing, the business is now being properly funded and is well on its way toward achieving its goals. We have been successful in eliminating risks of the Company allowing our team to now focus its energies and resources exclusively on developing and improving our technologies and entering into strategic business partnerships.”
About BrainStorm Cell Therapeutics Inc.
BrainStorm Cell Therapeutics Inc. is an emerging company developing adult stem cell therapeutic products, derived from autologous (self) bone marrow cells, for the treatment of neurodegenerative diseases. The NurOwn(TM) patent pending technology is based on discoveries made by the scientific team led by prominent neurologist Professor Eldad Melamed, Head of Neurology at Rabin Medical Center, and expert cell biologist Dr. Daniel Offen, Head of the Neuroscience Laboratory at the Felsenstein Medical Research Center of Tel-Aviv University. The technology allows for the differentiation of bone marrow-derived stem cells into functional neurons and astrocytes, as demonstrated in animal models. The Company holds rights to develop and commercialize the technology through an exclusive, worldwide licensing agreement with Ramot at Tel Aviv University Ltd., the technology transfer company of Tel-Aviv University. The Company's initial focus is on Parkinson's disease, although its technology has promise for treating several other diseases including MS, ALS, Huntington's disease and stroke.
