Brainstorm Cell Therapeutics Secures Second $1 Million Strategic Placement; Total $2 Million Raised In February

Rhea-AI Summary

Brainstorm Cell Therapeutics (OTCQB: BCLI) completed a second definitive private placement for $1.0 million, bringing February 2026 proceeds to $2.0 million.

Shares were priced at $0.60 with 120% warrant coverage at a $1.00 exercise price; funding will be drawn in up to eight staged installments to support working capital and preparatory work for a planned Phase 3b NurOwn trial.

Positive

• $2.0M total capital raised in February 2026
• Placement structured in up to 8 staged installments for predictable cash flow
• 120% warrant coverage signals investor commitment at $1.00 strike

Negative

• Issuance at $0.60 per share may pressure existing valuation
• 120% warrants create potential shareholder dilution if exercised

News Market Reaction – BCLI

+11.50%

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+11.50% News Effect

On the day this news was published, BCLI gained 11.50%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, Feb. 26, 2026 /PRNewswire/ -- Brainstorm Cell Therapeutics Inc. (OTCQB: BCLI), a leading developer of adult stem cell therapies for neurodegenerative diseases, today announced it has entered into a second definitive agreement for an additional $1 million strategic private placement. This brings the total capital raised in February 2026 to $2 million.

The financing is expected to reinforce a stable valuation for the company and provides the near-term resources required to advance its immediate regulatory and clinical objectives.

Key Terms of the Second Placement:

• Market-Aligned Pricing: The common stock was priced at $0.60 per share, closely aligned with recent market performance (closing at $0.615 on the day of finalization).
• High-Conviction Warrants: The placement includes 120% warrant coverage with an exercise price of $1.00 per share. This strike price serves as a significant "valuation target" for institutional partners, signaling their expectation of appreciation as the company achieves its upcoming milestones.
• Structured Liquidity Ladder: The investment is funded in staged installments, allowing for up to eight payments, providing the company with consistent and predictable cash flows to support near-term operational objectives and preparatory work for the planned Phase 3b trial of NurOwn.

"We believe that securing a cumulative $2 million in a single week establishes a floor for our valuation and reflects the market's growing confidence in our trajectory," said Chaim Lebovits, President and CEO of Brainstorm. "While the stock has shown positive momentum, our strategic investors are focused on the $1.00 warrant target. This latest capital influx, combined with our disciplined management of legacy liabilities, significantly extends our operational runway and allows us to focus on the preparatory work and strategic funding requirements for our Phase 3b clinical trial."

The company intends to use the proceeds for working capital and general corporate purposes, including the support of its ongoing regulatory and clinical development initiatives.

About NurOwn®
The NurOwn® technology platform (autologous MSC-NTF cells) represents a promising investigational therapeutic approach to targeting disease pathways important in neurodegenerative disorders. MSC-NTF cells are produced from autologous, bone marrow-derived mesenchymal stem cells (MSCs) that have been expanded and differentiated ex vivo. MSCs are converted into MSC-NTF cells by growing them under patented conditions that induce the cells to secrete high levels of neurotrophic factors (NTFs). Autologous MSC-NTF cells are designed to effectively deliver multiple NTFs and immunomodulatory cytokines directly to the site of damage to elicit a desired biological effect and ultimately slow or stabilize disease progression.

About BrainStorm Cell Therapeutics Inc.              
BrainStorm Cell Therapeutics Inc. (OTCQB: BCLI) is a leading developer of autologous adult stem cell therapies for debilitating neurodegenerative diseases. The company's proprietary NurOwn® platform uses autologous mesenchymal stem cells (MSCs) to produce neurotrophic factor-secreting cells (MSC-NTF cells), designed to deliver targeted biological signals that modulate neuroinflammation and promote neuroprotection.           

NurOwn® is BrainStorm's lead investigational therapy for amyotrophic lateral sclerosis (ALS) and has received Orphan Drug designation from both the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA). A Phase 3 trial in ALS (NCT03280056) has been completed, and a second Phase 3b trial is set to launch under a Special Protocol Assessment (SPA) agreement with the FDA. The NurOwn clinical program has generated valuable insights into ALS disease biology, including pharmacogenomic response associated with the UNC13A genotype, biomarker data collected at seven longitudinal time points, and a comprehensive analysis of the "Floor Effect" - a critical challenge in measuring clinical outcomes in advanced ALS. BrainStorm has published its findings in multiple peer-reviewed journals. In addition to ALS, BrainStorm has completed a Phase 2 open-label multicenter trial (NCT03799718) of MSC-NTF cells in progressive multiple sclerosis (MS), supported by a grant from the National MS Society. BrainStorm is also advancing a proprietary, allogeneic exosome-based platform designed to deliver therapeutic proteins and nucleic acids. The company recently received a Notice of Allowance from the U.S. Patent and Trademark Office for a foundational patent covering its exosome technology, further strengthening BrainStorm's growing IP portfolio in this emerging area of regenerative medicine. To learn more, visit www.brainstorm-cell.com.

Notice Regarding Forward-Looking Statement   
This press release contains "forward-looking statements" that are subject to substantial risks and uncertainties, including statements regarding meetings with the U.S. Food and Drug Administration (FDA), Special Protocol Assessment (SPA), the clinical development of NurOwn as a therapy for the treatment of ALS, the future availability of NurOwn to patients, and the future success of BrainStorm. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will" "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on BrainStorm's current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. These potential risks and uncertainties include, without limitation, management's ability to successfully achieve its goals, BrainStorm's ability to raise additional capital, BrainStorm's ability to continue as a going concern, prospects for future regulatory approval of NurOwn, whether BrainStorm's future interactions with the FDA will have productive outcomes, and other factors detailed in BrainStorm's annual report on Form 10-K and quarterly reports on Form 10-Q available at http://www.sec.gov. These factors should be considered carefully, and readers should not place undue reliance on BrainStorm's forward-looking statements. The forward-looking statements contained in this press release are based on the beliefs, expectations, and opinions of management as of the date of this press release. We do not assume any obligation to update forward-looking statements to reflect actual results or assumptions if circumstances or management's beliefs, expectations or opinions should change, unless otherwise required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements.

CONTACTS

Investors:
Michael Wood
Phone: +1 646-597-6983       
mwood@lifesciadvisors.com 

Media:
Uri Yablonka,
Chief Business Officer          
Phone: +1 917-284-2911       
uri@brainstorm-cell.com

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SOURCE BrainStorm Cell Therapeutics Inc.

FAQ

How much did Brainstorm (BCLI) raise in February 2026 with the second strategic placement?

Brainstorm raised an additional $1.0 million, bringing total February 2026 proceeds to $2.0 million. According to the company, the second definitive private placement was priced at $0.60 per share with 120% warrant coverage at a $1.00 strike.

What are the key terms of the BCLI private placement completed on February 26, 2026?

The placement priced common stock at $0.60 with 120% warrant coverage and a $1.00 exercise price. According to the company, funding is structured in up to eight staged payments to provide predictable near-term cash flow.

How will Brainstorm (BCLI) use proceeds from the $2.0 million raised in February 2026?

Proceeds are intended for working capital and general corporate purposes, including regulatory and clinical development support. According to the company, funds will specifically help preparatory work for the planned Phase 3b NurOwn trial.

What does 120% warrant coverage at $1.00 mean for BCLI shareholders?

120% warrant coverage means investors received warrants equal to 120% of shares bought, exercisable at $1.00. According to the company, this structure signals investor expectation of stock appreciation but creates potential dilution if warrants are exercised.

Will the staged eight-installment funding affect Brainstorm's runway or operations?

Staged funding provides consistent, predictable cash flows to support near-term operations and trial preparation. According to the company, the installment structure is intended to reinforce valuation stability and support preparatory work for the Phase 3b NurOwn trial.