SEC Form DEF 14A filed by Brainstorm Cell Therapeutics Inc.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934 (Amendment No. 1)
1325 AVENUE OF AMERICAS, 28TH FLOOR
NEW YORK, NY 10019
(201) 488-0460
|
/s/ Chaim Lebovitz
Chaim Lebovits
Chief Executive Officer |
| | | |
1325 AVENUE OF AMERICAS, 28TH FLOOR
NEW YORK, NY 10019
(201) 488-0460
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS TO BE HELD
September 16, 2024
shares;
years;
New York, New York
August 16, 2024
PROXY STATEMENT
Annual Meeting of Stockholders
To Be Held on September 16, 2024
Shares Beneficially Owned
|
| ||||||||||||
| | |
(Includes Common Stock, Presently
Exercisable Options and Presently Exercisable Warrants) |
| |||||||||
Name of Beneficial Owner
|
| |
#
|
| |
%
|
| ||||||
Directors and Named Executive Officers in 2023 | | | | | | | | | | | | | |
Chaim Lebovits
|
| | | | 3,535,331(1) | | | | | | 4.4% | | |
Dr. Stacy Lindborg
|
| | | | 462,185(2) | | | | | | * | | |
Uri Yablonka
|
| | | | 233,633(3) | | | | | | * | | |
Alla Patlis
|
| | | | 80,246(4) | | | | | | * | | |
Ralph Kern
|
| | | | — | | | | | | * | | |
Dr. Irit Arbel
|
| | | | 383,831(5) | | | | | | * | | |
Dr. Anthony Polverino
|
| | | | 25,960(6) | | | | | | * | | |
Nir Naor
|
| | | | — | | | | | | * | | |
Dr. Jacob Frenkel
|
| | | | 206,667(7) | | | | | | * | | |
Dr. Menghisteab Bairu
|
| | | | — | | | | | | — | | |
All current directors and executive officers as a group (11 persons)
|
| | | | 5,433,595(8) | | | | | | 6.7% | | |
ELECTION OF DIRECTORS
Name
|
| |
Age
|
| |
Position
|
|
Dr. Jacob Frenkel | | |
81
|
| | Chairperson and Director | |
Dr. Irit Arbel | | |
64
|
| | Vice-Chairperson and Director | |
Dr. Menghisteab Bairu | | |
64
|
| | Director | |
Nir Naor | | |
50
|
| | Director | |
Dr. Anthony Polverino | | |
61
|
| | Director | |
Uri Yablonka | | |
47
|
| | Director, EVP, Chief Business Officer and Secretary | |
Dr. Stacy Lindborg | | |
54
|
| | Director | |
RATIFICATION OF APPOINTMENT OF BRIGHTMAN ALMAGOR ZOHAR & CO., A FIRM IN THE
DELOITTE GLOBAL NETWORK, AS THE COMPANY’S INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM FOR THE FISCAL YEAR ENDING DECEMBER 31, 2024
INCORPORATION, AS AMENDED, TO INCREASE THE NUMBER OF AUTHORIZED SHARES OF
OUR COMMON STOCK FROM 100,000,000 TO 250,000,000
| | |
Number of
Shares Under Amended 2014 Stock Incentive Plan (#) |
| |
Number of
Shares under Amended Global Share Plan (#) |
| ||||||
Chaim Lebovits, Chief Executive Officer
|
| | | | — | | | | | | 968,112 | | |
Dr. Ibrahim B. Dagher, Chief Medical Officer
|
| | | | 332,742 | | | | | | — | | |
Alla Patlis, Interim Chief Financial Officer
|
| | | | — | | | | | | 96,446 | | |
Dr. Hartoun Hartounian, the Chief Operating Officer
|
| | | | — | | | | | | — | | |
All current executive officers, as a group
|
| | | | 332,742 | | | | | | 1,296,191 | | |
All current directors who are not executive officers, as a group
|
| | | | 476,645 | | | | | | 377,998 | | |
Each director who is not an effective officer | | | | | | | | | | | | | |
Dr. Jacob Frenkel
|
| | | | — | | | | | | 150,000 | | |
Dr. Irit Arbel
|
| | | | — | | | | | | 227,998 | | |
Dr. Menghisteab Bairu
|
| | | | — | | | | | | — | | |
Dr. Stacy Lindborg
|
| | | | 450,685 | | | | | | — | | |
Dr. Anthony Polverino
|
| | | | 25,960 | | | | | | — | | |
Nir Naor
|
| | | | — | | | | | | — | | |
Uri Yablonka
|
| | | | — | | | | | | 231,633 | | |
Each associate of any executive officers, current directors or director
nominees |
| | | | 476,645 | | | | | | 609,631 | | |
Each other person who received or is to receive 5% of awards
|
| | | | — | | | | | | — | | |
All current employees including all current officers who are not executive officers, as a group
|
| | | | 567,503 | | | | | | 774,966 | | |
Plan category
|
| |
Number of
securities to be issued upon exercise of outstanding options, warrants and rights (a) |
| |
Weighted Average
exercise price of outstanding options, warrants and rights (b) |
| |
Number of securities
remaining available for future issuance under equity compensation plan (excluding securities referenced in column (a)) (c) |
| |||||||||
Equity compensation plans approved by security
holders: |
| | | | 1,605,783(2) | | | | | $ | 3.2671(3) | | | | | | 2,108,070(3) | | |
Equity compensation plans not approved by security holders:
|
| | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | | 1,605,783 | | | | | $ | 3.2671 | | | | | | 2,108,070(1) | | |
TO AUTHORIZE THE BOARD OF DIRECTORS, IN ITS DISCRETION, SHOULD IT DEEM IT TO BE APPROPRIATE AND IN THE BEST INTERESTS OF THE COMPANY AND ITS STOCKHOLDERS, TO AMEND THE COMPANY’S CERTIFICATE OF INCORPORATION, TO EFFECT A REVERSE STOCK SPLIT OF THE COMPANY’S ISSUED AND OUTSTANDING SHARES OF COMMON STOCK BY A RATIO BETWEEN 1-FOR-5 AND 1-FOR-15, INCLUSIVE, WITHOUT FURTHER APPROVAL OR AUTHORIZATION OF THE COMPANY’S STOCKHOLDERS.
NON-BINDING ADVISORY VOTE ON THE FREQUENCY OF SAY-ON-PAY ADVISORY VOTES
ADVISORY VOTE ON EXECUTIVE COMPENSATION
Board Diversity Matrix (As of July 31, 2024)
|
| ||||||||||||||||||
Total Number of Directors
|
| |
7
|
| |||||||||||||||
| | |
Female
|
| |
Male
|
| |
Non-Binary
|
| |
Did Not
Disclose Gender |
| ||||||
Part I: Gender Identity | | | | | | | | | | | | | | | | | | | |
Directors
|
| | | | 2 | | | | | | 5 | | | | | | | | |
Part II: Demographic Background | | | | | | | | | | | | | | | | | | | |
African American or Black
|
| | | | | | | | | | 1 | | | | | | | | |
Alaskan Native or Native American
|
| | | | 1 | | | | | | | | | | | | | | |
Asian
|
| | | | | | | | | | | | | | | | | | |
Hispanic or Latinx
|
| | | | | | | | | | | | | | | | | | |
Native Hawaiian or Pacific Islander
|
| | | | | | | | | | | | | | | | | | |
White
|
| | | | 2 | | | | | | 4 | | | | | | | | |
Two or More Races or Ethnicities
|
| | | | 1 | | | | | | | | | | | | | | |
LGBTQ+
|
| | | | | | | | | | | | | | | | | | |
Did Not Disclose Demographic Background
|
| | | | | | | | | | | | | | | | | | |
Name
|
| |
Age
|
| |
Position
|
|
Chaim Lebovits | | |
53
|
| | Chief Executive Officer | |
Alla Patlis | | |
37
|
| | Interim Chief Financial Officer and Controller | |
Uri Yablonka | | |
47
|
| | Executive Vice President, Chief Business Officer, Secretary and Director | |
Hartoun Hartounian | | |
64
|
| | Executive Vice President and Chief Operating Officer | |
Ibrahim B. Dagher | | |
55
|
| | Executive Vice President and Chief Medial Officer | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($)(1) |
| |
Bonus
($) |
| |
Stock
Awards ($)(2) |
| |
All Other
Compensation ($) |
| |
Total ($)
|
| ||||||||||||||||||
Chaim Lebovits(*),
Co-Chief Executive Officer & President |
| | | | 2023 | | | | | | 441,667 | | | | | | 250,000(3) | | | | | | 250,012 | | | | | | 187,116(4) | | | | | | 1,128,795 | | |
| | | 2022 | | | | | | 500,000 | | | | | | 250,000(5) | | | | | | 127,547 | | | | | | 240,419 | | | | | | 1,117,966 | | | ||
Ralph Kern,
Former President & Former Chief Medical Officer |
| | | | 2023 | | | | | | 29,514 | | | | | | 125,000(6) | | | | | | 671,444(7) | | | | | | 7,234(8) | | | | | | 833,192 | | |
| | | 2022 | | | | | | 500,000 | | | | | | 150,000(9) | | | | | | 106,220 | | | | | | 56,339 | | | | | | 812,559 | | | ||
Stacy Lindborg,
Co-Chief Executive Officer(10) |
| | | | 2023 | | | | | | 475,000 | | | | | | 200,000(11) | | | | | | 256,650 | | | | | | 76,075 | | | | | | 1,007,725 | | |
| | | 2022 | | | | | | 469,000 | | | | | | 164,150(12) | | | | | | 143,150 | | | | | | 75,243 | | | | | | 851,543 | | | ||
Uri Yablonka(*),
Executive Vice President, Chief Business Officer, Secretary and Director |
| | | | 2023 | | | | | | 164,780 | | | | | | — | | | | | | — | | | | | | 82,275(13) | | | | | | 247,055 | | |
Alla Patlis(*),
Interim Chief Financial Officer and Controller |
| | | | 2023 | | | | | | 98,251 | | | | | | — | | | | | | 15,864 | | | | | | 32,668(14) | | | | | | 146,783 | | |
Option Awards
|
| |
Stock Awards
|
| |
Market
Value of Shares or Units of Stock That Have Not Vested ($)(1) |
| ||||||||||||||||||||||||||||||
Name
|
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |
Number
of Shares or Units of Stock That Have Not Vested (#) |
| |||||||||||||||||||||
Chaim Lebovits
|
| | | | 369,619 | | | | | | — | | | | | | 2.45 | | | | | | 9/28/2025 | | | | | | — | | | | | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | 7,796(2) | | | | | | 2,105 | | | ||
| | | | | | | | | | | | | | | | | | | | | | | | | | | 15,593(3) | | | | | | 4,210 | | | ||
| | | | | | | | | | | | | | | | | | | | | | | | | | | 23,389(4) | | | | | | 6,315 | | | ||
| | | | | | | | | | | | | | | | | | | | | | | | | | | 31,185(5) | | | | | | 8,420 | | | ||
Stacy Lindborg
|
| | | | 100,000 | | | | | | — | | | | | | 7.67 | | | | | | 01/06/2030 | | | | | | 26,250(6) | | | | | | 7,088 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | 35,000(7) | | | | | | 9,450 | | | ||
Uri Yablonka
|
| | | | 33,333 | | | | | | — | | | | | | 2.70 | | | | | | 06/06/2024 | | | | | | — | | | | | | — | | |
| | | 13,333 | | | | | | — | | | | | | 0.75 | | | | | | 08/15/2024 | | | | | | — | | | | | | — | | | ||
| | | 13,333 | | | | | | — | | | | | | 0.75 | | | | | | 08/27/2025 | | | | | | — | | | | | | — | | | ||
| | | 13,333 | | | | | | — | | | | | | 0.75 | | | | | | 06/22/2026 | | | | | | — | | | | | | — | | | ||
| | | 13,333 | | | | | | — | | | | | | 0.75 | | | | | | 11/10/2027 | | | | | | — | | | | | | — | | | ||
| | | 13,333 | | | | | | — | | | | | | 0.75 | | | | | | 11/30/2028 | | | | | | — | | | | | | — | | | ||
| | | 13,333 | | | | | | — | | | | | | 0.75 | | | | | | 12/12/2029 | | | | | | — | | | | | | — | | | ||
| | | 13,333 | | | | | | — | | | | | | 0.75 | | | | | | 12/10/2031 | | | | | | — | | | | | | — | | | ||
| | | 13,333 | | | | | | — | | | | | | 0.75 | | | | | | 12/15/2031 | | | | | | — | | | | | | — | | | ||
Alla Patlis
|
| | | | 7,200 | | | | | | 2,400(8) | | | | | | 9.51 | | | | | | 10/21/2030 | | | | | | — | | | | | | — | | |
| | | 2,400 | | | | | | 7,200(9) | | | | | | 4.09 | | | | | | 09/15/2032 | | | | | | — | | | | | | — | | | ||
| | | — | | | | | | 12,000(10) | | | | | | 1.73 | | | | | | 08/01/2033 | | | | | | — | | | | | | — | | |
Year
|
| |
Summary
Compensation Table Total for PEO #1 ($)(1)(2) |
| |
Compensation
Actually Paid To PEO #1 ($)(1)(3) |
| |
Summary
Compensation Table Total for PEO #2 ($)(1)(2) |
| |
Compensation
Actually Paid To PEO #2 ($)(1)(3) |
| |
Average
Summary Compensation Table Total for Non-PEO NEOs ($)(1)(2) |
| |
Average
Compensation Actually Paid to Non-PEO NEOs ($)(1)(3) |
| |
Value of
initial fixed $100 investment based on total shareholder return (TSR) ($)(4): |
| |
Net
Loss($)(5) (in thousands) |
| ||||||||||||||||||||||||
2023
|
| | | | 1,128,795 | | | | | | 822,884 | | | | | | 1,007,725 | | | | | | 724,562 | | | | | | 409,010 | | | | | | 179,907 | | | | | | 6 | | | | | $ | (17,192) | | |
2022
|
| | | | 1,117,966 | | | | | | 897,254 | | | | | | N/A | | | | | | N/A | | | | | | 832,051 | | | | | | 631,570 | | | | | | 36 | | | | | $ | (24,277) | | |
2021
|
| | | | 1,128,349 | | | | | | 1,089,130 | | | | | | N/A | | | | | | N/A | | | | | | 837,757 | | | | | | 780,137 | | | | | | 88 | | | | | $ | (24,457) | | |
2023
|
| |
PEO #1
|
| |
PEO #2
|
| |
Non-PEO NEOs
|
| |||||||||
SCT Total Compensation
|
| | | $ | 1,128,795 | | | | | $ | 1,007,725 | | | | | $ | 409,010 | | |
Deduct amounts reported under the “Stock Awards” and “Option Awards” column of the SCT
|
| | | $ | (250,012) | | | | | $ | (256,650) | | | | | $ | (229,103) | | |
Add Fair Value of Awards Granted in 2023 Unvested as of 12/31/23
|
| | | $ | 8,420 | | | | | $ | 9,450 | | | | | $ | — | | |
Add (Deduct) Change in Fair Value of Awards Granted in Prior Years Unvested as of 12/31/23
|
| | | $ | (64,085) | | | | | $ | (35,963) | | | | | $ | — | | |
Add (Deduct) Change in Fair Value of Awards Granted in Prior Years that Vested during 2023 as of the Vesting Date
|
| | | $ | (234) | | | | | $ | — | | | | | $ | — | | |
Total Compensation Actually Paid
|
| | | $ | 822,884 | | | | | $ | 724,562 | | | | | $ | 179,907 | | |
2022
|
| |
PEO
|
| |
Non-PEO NEOs
|
| ||||||
SCT Total Compensation
|
| | | $ | 1,117,966 | | | | | $ | 832,051 | | |
Deduct amounts reported under the “Stock Awards” and “Option Awards” column of the SCT
|
| | | $ | (127,547) | | | | | $ | (124,685) | | |
Add Fair Value of Awards Granted in 2022 Unvested as of
12/31/22 |
| | | $ | 51,143 | | | | | $ | 58,126 | | |
Add (Deduct) Change in Fair Value of Awards Granted in Prior Years Unvested as of 12/31/22
|
| | | $ | (110,395) | | | | | $ | (100,580) | | |
Add (Deduct) Change in Fair Value of Awards Granted in Prior Years that Vested during 2022 as of the Vesting Date
|
| | | $ | (33,914) | | | | | $ | (33,342) | | |
Total Compensation Actually Paid
|
| | | $ | 897,253 | | | | | $ | 631,570 | | |
2021
|
| |
PEO
|
| |
Non-PEO NEOs
|
| ||||||
SCT Total Compensation
|
| | | $ | 1,128,349 | | | | | $ | 837,757 | | |
Deduct amounts reported under the “Stock Awards” and “Option Awards” column of the SCT
|
| | | $ | (110,395) | | | | | $ | (62,986) | | |
Add Fair Value of Awards Granted in 2022 Unvested as of
12/31/21 |
| | | $ | 124,736 | | | | | $ | 71,170 | | |
Add (Deduct) Change in Fair Value of Awards Granted in Prior Years Unvested as of 12/31/21
|
| | | $ | (24,792) | | | | | $ | (29,438) | | |
Add (Deduct) Change in Fair Value of Awards Granted in Prior Years that Vested during 2021 as of the Vesting Date
|
| | | $ | (28,768) | | | | | $ | (36,366) | | |
Total Compensation Actually Paid
|
| | | $ | 1,089,130 | | | | | $ | 780,137 | | |
Total Shareholder Return (TSR)
Name
|
| |
Fees
Earned or Paid in Cash ($) |
| |
Stock
Awards ($)(1) |
| |
Option
Awards ($)(1) |
| |
Total
($) |
| ||||||||||||
Dr. Jacob Frenkel
|
| | | | — | | | | | | — | | | | | | —(2) | | | | | | — | | |
Dr. Irit Arbel
|
| | | | — | | | | | | — | | | | | | —(3) | | | | | | — | | |
Dr. June S. Almenoff(4)
|
| | | | 30,000 | | | | | | — | | | | | | — | | | | | | 30,000 | | |
Dr. Anthony Polverino(5)
|
| | | | 12,500 | | | | | | — | | | | | | — | | | | | | — | | |
Dr. Menghisteab Bairu(6)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Nir Naor(7)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Malcolm Taub(8)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
December 31,
|
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
Audit Fees(1)
|
| | | $ | 100,000 | | | | | $ | 90,750 | | |
Audit-Related Fees(2)
|
| | | $ | 60,000 | | | | | $ | 60,000 | | |
Tax Fees(3)
|
| | | $ | 12,000 | | | | | $ | 12,000 | | |
Total Fees
|
| | | $ | 172,000 | | | | | $ | 162,750 | | |
Dr. Irit Arbel
Dr. Menghisteab Bairu
New York, New York
August 16, 2024
Title: Chief Executive Officer
TO
2014 STOCK INCENTIVE PLAN
TO
2014 GLOBAL SHARE OPTION PLAN
Title: Chief Executive Officer