D-Pharm Ltd. (TASE: DPRM), which is developing a stroke treatment drug, has raised NIS 16.5 million in a rights offering. 99% of shareholders exercised their rights at NIS 8 per unit, compared with NIS 11.5, the price at the time of the share offering announcement. Investors thus received a 3.56% premium for each share purchased. The group's controlling shareholder, Clal Biotechnology Industries Ltd. (TASE: CBI) (48%), exercised all its rights, and acquired a further 250,000 rights.
After completing the transaction, D-Pharm's share price fell 1.69%, giving a market cap of NIS 198 million, up from NIS 174 million on the day the rights offering was announced. The fundraising thus added more than the NIS 16.5 million to the company's value.
The funds will help accelerate the pace of D-Pharm's clinical trial (currently in the last stage before submitting a marketing application) in an effort to publish its interim results by the first quarter of 2012. The company's options, worth $50 million, also expire in the first quarter of 2012, and the clinical trial is expected to end in 2013.
Published by Globes [online], Israel business news - www.globes-online.com - on August 3, 2011
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