Georgi Kamburov

BrainStorm Cell Therapeutics Inc. (OTCBB:BCLI) Managed To Recover After Two Days Of Losses

by Georgi Kamburov August 15, 2013
BCLIchart.pngYesterday BrainStorm Cell Therapeutics Inc. (OTCBB:BCLI, BCLI message board) opened with a gap up, stayed positive for most of the day and at the end had gained 17% above the previous close. Although the traded volume of 1.9 million was nowhere near the 7.5 million shares from Tuesday interest in the stock is still quite significant.

The return to $0.20 per share came right after the financial report for the second quarter of 2013 was made public. In it the company disclosed having the following financials:

  • $755 thousand cash
  • $3.2 million total current assets
  • $1.2 million total liabilities
  • ZERO revenues
  • $1.5 million net loss

BCLI are a development stage biotechnological company that specializes in adult stem cell technologies for neurodegenerative diseases. So the lack of revenues and the continued net loss are to be expected. They have a positive working capital and are expecting another $4 million after the public offering that began this week. According to its terms 23 million units consisting of 1 share and 0.75 of a warrant will be sold at a price of $0.17 .

Investors should also keep in mind that a reverse split ranging from 1-for-10 to 1-for-20 has also been approved and is to be expected. Due to the underwriting agreement executed in connection to the public offering the reverse split is more than likely not going to happen in the next three months. A conference call is scheduled for August 20 and we hoper that further light will be shed on the near-term goals of the company.

BCLI has been keeping away from any involvement with paid pumpers for the past 2 years. The last promo campaign for them dates back to February 2011 which means that the performance of the stock is not subjected to the influence of any artificial hype.

SOULDchart.pngThis however cannot be said for Arch Therapeutics Inc (OTCBB:ARTH) who have been supported by a pump that has been funded by $1.3 million. Despite having access to such vast amount of money the campaign has had a detrimental effect and ARTH have tumbled down from price levels of above $1.3 and are now traded for $0.47.

Soul and Vibe Interactive Inc (OTCBB:SOULD) who have been one of the top traded stocks since the end of July are starting to falter. The market reacted negatively to the 1-for-3 reverse split and yesterday the company suffered another blow when OTCMarkets demoted them to the Pink Limited Information tier after SOULD failed to file their financial report for the second quarter of 2013.

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