Biocancell Therapeutics Ltd. (TASE:BICL) has confirmed, in its financial report for the second quarter of 2010, a "Globes" report that it is planning an offering on Nasdaq. The company's need to raise money is highlighted by the going concern warning attached to the financial report by the company's auditor KPMG Somekh Chaikin
The cancer treatment developer stated that it will consider an offering securities via an off-the-shelf prospectus already filed with the US Securities and Exchange Commission (SEC). The company is also reviewing other options for raising capital, including a secondary offering on the TASE, a rights issue, or a private placement.
Biocancell had NIS 7.1 million in cash at the end of March, after a negative cash flow of NIS 1.1 million in the second quarter. The company still has no revenue and its net loss for the quarter was NIS 16 million.
Biocancell was founded in 2004 by CSO Prof. Avraham Hochberg on the basis of his discovery of the H-19 gene that is found in many types of cancers, but is nearly undetectable in normal tissue. The company's drug, BC-819 is undergoing clinical trials at various stages for targeted treatment of bladder, pancreas, and ovarian cancer, based on this discovery.
Hochberg owns 10.4% of Biocancell and IDB Holding Corp. Ltd. (TASE:IDBH) unit Clal Biotechnology Industries Ltd. (TASE: CBI) owns 18.6%. Biocancell's share price rose 1% by mid-afternoon on the TASE to NIS 2.23, giving a market cap of NIS 45 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 9, 2010
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