BrainStorm Cell Therapeutics Inc (BCLI)

[Spideyboy]

Hi ER,

Sounds like things are going well for you. BCLI also being good to me too as I expect is is for most people at this stage.

Again, good news keeps coming in and I'm not concerned on the funding coming in or not, but rather the format.

Also I was thinking that if they were talking about a deal with a potential partner, then they've been doing that for about 3 months now. Thus I would have expected something to come to fruition by now or quite soon. Recently I've notice some Israeli biotech making good deal with China partners, however new China policies brought in on Foreign Direct Investing has but a lot of those good deals on hold until the practicalities of the impact of the policies are clear.

However if raising cash by share offering, they may have had to pull back on their initial offering price as the gains recently have been very strong. I was originally thinking if they offered the shares at USD2.5, that would already be good, but we so quickly reached USD4.0-4.25. If suddenly they honored an earlier deal with investors at the 2.5 mark, it would look like they were offering shares at near 50% discount. That wouldn't make people happy and would be illogical with regards a 'good deal'. So perhaps they needed to rejig the offer to keep it in line with new realities.

If I were BCLI I would do one of two things:
1. Make a deal with commercial distributor who has influence in a key but difficult to navigate geography like China.
2. If you just need the cash, raise by share offering. Quick and easy and maximum control. They are piling on the commercial avenues in easy to access areas as well as the expertise and influential staff. No need to bring in a larger player to support them in that. Key will be access to more key geographies. Again if not to access key geographies then all they need is cash.

Of course a lot of perhaps here. I trust management to take the right course of action based on their information. Just waiting to see the money.