Biocancell drops on institutional placement

Controlling shareholders Clal Biotech, Tikro Technologies, and CSO Prof. Avraham Hochberg were not part of the placement.

Biocancell Therapeutics Ltd. (TASE:BICL) raised NIS 10.6 million in a private placement to institutional investors. The company did not disclose the names of the investors who committed to buying the shares, but they do not include controlling shareholders Clal Biotechnology Industries Ltd. (TASE: CBI), Tikro Technologies Ltd., and chief science officer Prof. Avraham Hochberg.

Biocancell's share price fell 6.9% to NIS 3.21, giving a market cap of NIS 57 million on the announcement.

Biocancell will issue 3.59 million shares - 18% of its share capital - at NIS 2.95 per share, a 14% discount on today's opening price. It will also allot options convertible into another 3.59 million shares at a strike price of NIS 4.25 per share. The options can be exercised in four years, giving the options the chance of emerging from their current position of deep in the money.

Biocancell's BC-819 drug for the treatment of various cancers is undergoing Phase I/II and Phase II clinical trials for various indications. The results of the Phase II clinical trial for treating bladder cancer treatment are due in early 2011. The company has also begun a Phase I/II safety and effectiveness clinical trial of the drug for the treatment of pancreatic cancer. The company announced in October 2009, that it was seeking to raise NIS 15-20 million

Nochi Dankner controlled IDB Holding Corp. Ltd. (TASE:IDBH) life sciences investment arm Clal Biotech owns 23.4% of Biocancell.

Published by Globes [online], Israel business news - - on March 1, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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