Stem Cell Company Pluri Faces Delisting Threat After Market Value Plummets
Pluri, formerly known as Pluristem, received a warning from the Nasdaq stock exchange this week that it no longer meets the minimum market capitalization requirements for continued listing. If the company's market value does not double within about six months, it risks being delisted and moved to the Over The Counter (OTC) market. Pluri's stock has fallen 46% since the start of the year and 70.5% over the past 12 months, reducing its valuation to approximately 50 million shekels (around 18 million USD). Nasdaq's minimum threshold is 35 million USD, and the company must meet this by January 4, 2027, to avoid delisting. At its peak in September 2020, Pluri was valued at nearly one billion shekels and was considered a leading Israeli stem cell firm.
This is not Pluri's first delisting warning; a similar notice was issued in 2022 when its valuation was about 200 million shekels. The company then performed a reverse stock split to temporarily boost its share price, but the problem has resurfaced. Pluri develops treatments based on stem cells derived from post-birth placentas, aiming to stimulate the body's natural repair mechanisms rather than replacing damaged tissues. Recently, the company has repositioned itself as a platform capable of producing various cell types at industrial scale, targeting commercialization by 2026 after completing its research and development phase.
Pluri is also seeking to capitalize on the growing longevity and regenerative medicine market, citing significant investments by figures like Jeff Bezos and Sam Altman. Chilean businessman Alejandro Weinstein, who increased his stake to 35% and became chairman last year, has invested about 17 million USD. Additionally, influencer and hedge fund manager Guy Natan acquired shares through his fund, seeing potential despite the company's troubled reputation.
Despite these efforts, Pluri has struggled to translate its research into commercial products. Its pivot during the COVID-19 pandemic to develop treatments for severe cases did not yield marketable results. The company has since expanded into vascular treatments, agrotech collaborations for cultured cocoa and coffee, and radiation injury therapies, but none have generated significant sales. CEO Yaki Yanai acknowledged the failures in clinical trials and emphasized a shift away from long-term clinical development toward faster commercialization, leveraging regulatory changes in the U.S. that allow stem cell use without FDA approval.
Financially, Pluri reported a loss of nearly 20 million shekels in Q1 2024, with annual losses rising to 86 million shekels in 2025 and only about 10 million USD in cash reserves remaining. The critical question now is whether Pluri can successfully execute its new strategy before running out of time and capital, as investor confidence remains low given the company's history of setbacks.
