note to PLRS: adios traders !! more detailed comment for Mr. Craig Bird IR
posted on
Nov 10, 2007 06:42AM
Adult stem cell development company commencing clinical trials applicable to estimated $30 billion degenerative disease market place
Hey Everyone,
It appears that not everyone has access to the recent press release, so I've added to this message (see below). Regarding the Company's thought process and motives for conducting a reverse stock split, I can tell you that management researched and discussed this issue at length and frequently over the past months.
From my observations, managements' main focus is on revealing Pluristem's business and scientific credibility through quality execution of its business plan and relationships. A NASDAQ listing is one more step in the process. As I reported previously, many experts in the scientific community are very optimistic about Pluristem's progress and prospects for using the bio-reactor system and PLX products for a variety of indications. The relationship with Charite would not have been possible, if the animal testing results were not outstanding.
Business-wise, the Company has positioned itself very well. They have multiple patent protections, plenty of cash on hand, a relatively low burn rate and a very lucrative commercialization strategy. Pluristem's position is so strong that the business, scientific and investment communities were asking, "Why don't you clean up your market capitalization structure and get listed on the Amex or NASDAQ?"
As I related previously, institutional money usually stays out of penny-stocks. Pluristem's management is convinced that it can attract institutional investors once they get listed on NASDAQ. The listing alone does not assure this, but with the progress Pluristem is making and future expectations, management feels it will succeed in gaining better market valuations and gain more business opportunities from the recognition and status that a NASDAQ listing brings.
I suggest you look at Pluristem's fundamentals, their track record of meeting forward looking guidance and tremendous opportunity to penetrate a multi-billion dollar market; a $2.5 Billion market for PLX I alone. I can assure you that management looked very carefully at the pros and cons of listing on NASDAQ and the requisite reverse stock split and they unanimously concluded that the pros outweighed the cons.
Therefore, to answer all the questions about did Pluristem consider the market reaction, such as shorting, momentum players, hyping, etc., etc., etc. The answer is yes; they did so and consulted several experts about these matters. Their conclusion was to move forward in a prudent and professional manner, with their sights on long-term goals and a continuing record of improving its position in the business, investment and scientific communities.
It is my opinion that Pluristem's loyalty to investors does not include stock traders. The Company's responsibility is to maintain the long-term investment value for its stakeholders. It seems to me that the long-term valuation of a NASDAQ stock is eminently superior to that of a bulletin board stock. I think Pluristem's decision was a good one and I believe that once the NASDAQ listing is achieved and the market settles down, the broader investment community will agree.
Respectfully,
Craig
Pluristem Announces a Reverse Stock Split in Conjunction With Its Application for Listing on the NASDAQ Capital Market
Thursday November 8, 8:00 am ET
NEW YORK--(BUSINESS WIRE)--Pluristem Life Systems, Inc. (OTCBB:PLRS) (DAX:PJT), a bio-therapeutics Company dedicated to the commercialization of non-personalized (allogeneic) cell therapy products for a variety of malignant, degenerative and auto-immune indications, announced today that it intends to effect a 200 to 1 reverse stock split in conjunction with an application, previously filed, to list its shares on the NASDAQ Capital Market.
Mr. Zami Aberman, Pluristem's President and CEO, commented, "The NASDAQ application is part of our strategy to strengthen Pluristem's financial position, broadening the availability of our stock to both institutional and individual investors."
About Pluristem
Pluristem Life Systems, Inc. is a Company dedicated to the commercialization of non-personalized (allogeneic) stem cell therapy products for the treatment of numerous severe degenerative, malignant and autoimmune disorders. The Company's first product, PLX-I, is directed at resolving the global shortfall of matched tissue for bone marrow transplantation (BMT) by improving the engraftment of hematopoietic stem cells (HSCs) contained in umbilical cord blood (UCB).
Pluristem's products are derived from mesenchymal stromal cells (MSCs) obtained from the placenta and are not embryonic stem cells. They are expanded in the Company's proprietary PluriXTM 3D bioreactor that imitates the natural microstructure of bone marrow and does not require supplemental growth factors, cytokines or other exogenous materials. Pluristem believes the resultant expanded cells, termed PLX cells, are multi-potent and able to differentiate into a variety of cell types as well as being immune-privileged to protect the recipient from immunological reactions that often accompany transplantation.
Pluristem has offices in the USA with research and manufacturing facilities in Israel. www.pluristem.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and federal securities laws. These forward-looking statements are based on the current expectations of the management of Pluristem only, and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For example, when we speak about our planned reverse stock split and our application to list our shares on the Nasdaq Capital Market, we are using forward-looking statements. We may not be approved for listing on Nasdaq. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in technology and market requirements; our technology may not be validated as we progress further and our methods may not be accepted by the scientific community; we may be unable to retain or attract key employees whose knowledge is essential to the development of our products; unforeseen scientific difficulties may develop with our process; results in the laboratory may not translate to equally good results in real surgical settings; our patents may not be sufficient; our products may harm recipients; changes in legislation; inability to timely develop and introduce new technologies, products and applications; loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of Pluristem to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, Pluristem undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risk and uncertainties affecting Pluristem, reference is made to Pluristem's reports filed from time to time with the Securities and Exchange Commission.
For more information visit our website at www.pluristem.com, the content of which is not part of this press release.