BrainStorm Cell Therapeutics Announces Switch from Nasdaq to OTCQB Market Following Delisting; Stock Drops
BrainStorm Cell Therapeutics (BCLI), a biotech company focusing on the development of therapies for neurodegenerative diseases, has been delisted from the Nasdaq Capital Market due to non-compliance with Nasdaq Listing Rule 5550(b)(1), which requires maintaining a minimum shareholder equity threshold. The company's shares will begin trading on the OTCQB Venture Market on July 18, 2025, under the same symbol "BCLI."
The delisting is a result of BCLI's failure to meet the equity requirement, leading to trading being suspended at the Nasdaq market open on the same day. The OTCQB Venture Market provides a platform for early-stage and developing companies, although it generally involves lower liquidity and reduced institutional investor access compared to Nasdaq.
Despite the challenging event, BrainStorm's CEO, Chaim Lebovits, has emphasized that the company's core mission and commitment to advancing the development of NurOwn, its lead investigational therapy for amyotrophic lateral sclerosis (ALS), remains unaltered. The company is preparing for a planned pivotal Phase 3b trial under an FDA Special Protocol Assessment.
The move reflects the company's deteriorated financial metrics, including a low current ratio and declining market capitalization. However, BrainStorm aims to maintain its operational and R&D activities despite the change in trading venue.
It is worth noting that Seeking Alpha has a Quant Rating on BrainStorm Cell Therapeutics, but the exact rating is not specified in the article. Furthermore, the details of the Phase 3b ALS trial, such as its duration or specific locations, are not provided.
Following the delisting news, BCLI shares fell an additional 26.5% post-market on Thursday, beyond the previous drop. The company had finalized a prior offering and has secured approval to trade on the OTCQB Venture Market. The trading suspension on the Nasdaq Capital Market for BrainStorm Cell Therapeutics will take effect on July 18, 2025, and the Phase 3b ALS trial is scheduled to launch following FDA clearance and expanded manufacturing plans.
References: [1] BrainStorm Cell Therapeutics Press Release, [date]. [2] Seeking Alpha, BrainStorm Cell Therapeutics (BCLI), [date]. [3] Yahoo Finance, BrainStorm Cell Therapeutics (BCLI), [date].
The delisting from Nasdaq Capital Market indicates BrainStorm Cell Therapeutics' inability to maintain the required minimum shareholder equity, leading to a shift in trading to the OTCQB Venture Market. With lower liquidity and reduced institutional investor access compared to Nasdaq, the company aims to continue its core business objectives, especially in financing and investing for the advancement of its lead investigational therapy, NurOwn, for amyotrophic lateral sclerosis (ALS).
