Item 1.01 Entry into a Material Definitive Agreement.
On September 25, 2020, Brainstorm
Cell Therapeutics Inc. (the “Company”) entered into an Amended and Restated Distribution Agreement (the “Distribution
Agreement”) with SVB Leerink LLC (“Leerink”) and Raymond James & Associates, Inc. (“Raymond James”
and, together with Leerink, the “Distribution Agents”). The Distribution Agreement amends and restates in its entirety
the Company’s prior agreement with Raymond James entered into on March 6, 2020 (the “Prior Agreement”). The Company
previously sold 2,446,641 shares of common stock for gross proceeds of approximately $23.11 million of common stock under the Prior
Agreement.
Pursuant to the terms of the Distribution
Agreement, the Company may sell from time to time or through the Distribution Agents shares of the Company’s common stock,
par value $0.00005 per share (the “Shares”), having an aggregate offering amount of up to an aggregate of $45,000,000
(the “Offering”), which aggregate amount includes amount unsold pursuant to the Prior Agreement.
The Company filed a prospectus supplement, September
25, 2020 (the “Prospectus Supplement”), with the U.S. Securities and Exchange Commission (the “SEC”)
in connection with the Offering. Sales of the Shares, if any, will be made by any method permitted by law that is deemed to be
an “at-the-market” offering as defined in Rule 415 promulgated under the Securities Act of 1933, as amended (the “Securities
Act”), including, without limitation, sales made directly on the Nasdaq Capital Market, on any other existing trading
market for the Shares, through a market maker or as otherwise agreed by the Company and the Distribution Agents.
The Company has no obligation to sell any
of the Shares and the Distribution Agents are not required to sell any specific number or dollar amount of shares of the Common
Stock under the Distribution Agreement, and the Company or the Distribution Agents may at any time suspend sales under the Distribution
Agreement or terminate the Distribution Agreement in accordance with its terms.
Subject to the terms and conditions of the
Distribution Agreement, the Distribution Agents will use their commercially reasonable efforts to sell on the Company’s behalf,
from time to time consistent with its normal sales and trading practices, such Shares based upon instructions from the Company
(including any price, time or size limits or other customary parameters or conditions the Company may impose). The Company has
provided the Distribution Agents with customary indemnification rights, and the Distribution Agents will be entitled to a fixed
commission of 3.0% of the aggregate gross proceeds from the Shares sold. The Distribution Agreement contains customary representations
and warranties, and the Company is required to deliver customary closing documents and certificates in connection with sales of
the Shares.
The Shares will be issued pursuant to the
Company’s existing shelf registration statement on Form S-3 (File No. 333-225517) (the “Registration Statement”),
which was filed with the SEC and declared effective by the SEC on June 29, 2018, and the Prospectus Supplement.
The foregoing description of the Distribution
Agreement is not complete and is qualified in its entirety by reference to the full text of the Distribution Agreement, a copy
of which is filed as Exhibit 1.1 herewith and incorporated herein by reference. A copy of
the opinion of Goodwin Procter LLP relating to the legality of the issuance and sale of the Shares in the Offering is attached
as Exhibit 5.1 hereto.
This Current Report on Form 8-K shall not
constitute an offer to sell or the solicitation of an offer to buy the securities discussed herein, nor shall there be any offer,
solicitation, or sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state.