Cancer drug development company Biocancell Therapeutics Ltd. (TASE:BICL) has obtained a $500,000 investment from Clal Biotechnology Industries Ltd. (TASE: CBI) as part of a planned secondary offering by Biocancell. The investment is contingent on Biocancell raising at least $2 million in an issue of stocks and warrants.
Clal Biotech will have an option to appoint two directors to Biocancell's board, where it currently has no representatives. Clal Biotech is the life sciences investment arm of Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH.
Clal Biotech CEO Ruben Krupik said, "We hope that the negotiations between the parties yielded understandings that will benefit Biocancell's conduct and preparations for dealing with the challenges ahead."
Biocancell founder and chief scientist Prof. Avraham Hochberg said, "Clal Biotech's investment at this stage is a vote of confidence in the company's technology for developing cancer treatments. I'm more optimistic than ever about the technology's capabilities. The agreement between Biocancell and Clal Biotech will enable us to continue development of the technology, to which I've devoted more than 15 years."
Biocancell's share rose 5% by midday to NIS 3.30, giving a market cap of NIS 51.4 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2009
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