Biocancell secondary offering oversubscribed 74%

Investors apparently sold shares on the market while purchasing shares in the offering.

Thursday's secondary offering of shares and warrants by Biocancell Therapeutics Ltd. (TASE:BICL) was oversubscribed 74%. The offering was held at NIS 3.30 per share, a 12% premium on the opening price. The company raised NIS 18.6 million, 18% above the minimum target.

Biocancell's share price fell 12.2% on Thursday to NIS 2.66, but rebounded 6.8% today to NIS 2.84, giving a market cap of NIS 56 million.

It seems that investors calculated that the price of offering (which included warrants that lowered the effective price to NIS 1.50 per share) was better than the market price, and opted to sell shares on the market while purchasing shares in the offering.

Biocancell will use proceeds from the offering to begin the Phase IIb clinical trial of its treatment for pancreatic cancer.

Published by Globes [online], Israel business news - www.globes-online.com - on November 21, 2010

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

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