Biocancell raises NIS 16.5m in secondary offering

The cancer drug development company issued 22 million shares.

Biocancell Therapeutics Ltd. (TASE:BICL) has raised NIS 16.5 million, net of NIS 900,000 in expenses, in yesterday's secondary offering on the Tel Aviv Stock Exchange (TASE). The company issued 22.1 million shares at NIS 0.79 per share. The shares were sold in units of 100 shares each.

Market sources estimate that Clal Biotechnology Industries Ltd. (TASE: CBI), controlled by Len Blavatnik, which owned 69.6% of Biocancell before the offering, invested NIS 11-12 million in the company as part of the offering.

Biocancell will use the proceeds to pursue development of its lead product, BC-819, which is undergoing clinical trials for the treatment of bladder and pancreatic cancer. It will also use 24% of the proceeds to continue development of another cancer drug, BC-821.

Biocancell's share price fell 3.9% in morning trading today to NIS 0.81, giving a market cap of NIS 77 million, after falling 6% yesterday.

Published by Globes [online], Israel business news - www.globes-online.com - on May 22, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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