Pluristem Therapeutics Inc. (NASDAQ:PSTI) is moving up in pre-market trading on Tuesday.
As of 8:55, PSTI is up $0.23 or 6.05% to $4.03 on a moderate volume of 0.310 million shares, close to its 30-day average volume of 0.384 million. Potential points are 3.81 and 3.84 below, and 3.73 and 3.76 below.
Pluristem Therapeutics Receives “Disbursement Offer” of $24 Million
European Investment Bank (EIB) would disburse EUR50 million in 3 tranches to PSTI
PSTI to receive the first tranche of the EUR50 million disbursement in June 2021.
The first tranche would be utilized to fund and further PSTI’s “proprietary regenerative cell therapy platform”.
PSTI would have a total of $90 million after receiving the first tranche
The first tranche of €20 million will not be secured and will be payable to the EIB in a single payment five years after the disbursement, with an interest rate of 4%.
Yaky Yanay, CEO and President commented, “The EIB funding allows Pluristem to execute our operational, clinical, and R&D activities to advance our regenerative medicine platform…. We are committed to leveraging this funding mechanism to strengthen the development of our product candidates to maturation. We are grateful to the EIB for their ongoing support and confidence in our technology.”
The disbursement offer has brought in a jump in PSTI’s stock price. The market reacted positively to the news, and it remains to be seen if PSTI can hold the gain and move higher.