Biocancell to raise NIS 29m in rights issue

Len Blavatiks Clal Biotechnology will buy at least half the shares.

Cancer treatment drug developer Biocancell Therapeutics Ltd. (TASE:BICL) plans raising NIS 28.8 million in a rights issue. The stock is being offered at NIS 2.4 per share, a discount of 8% on this mornings share price. Biocancells stock is currently down 7.5%, at a market cap of NIS 48 million.

Biocancells controlling shareholder, Len Blavatniks Clal Biotechnology Industries Ltd. (TASE: CBI) (71%), has announced that it will buy at least NIS 14.4 million worth of shares, meaning the shares may be slightly diluted in the offering.

A year and a half ago, Clal Biotech greatly increased its holding in Biocancell, right when the public did not respond to the companys offering. Afterwards, Clal Biotech planned to make an offer to acquire the company, but withdrew when the Biocancell was in talks to license its most advanced product, for the treatment of bladder cancer, to a leading corporation. However, the deal fell through.

In an update to the announcement of the offering today, Biocancell also announced that it is continuing to meet with pharmaceutical companies in order to market its bladder cancer treatment, but that the meetings are in preliminary stages. Results for the Phase IIb clinical trial are expected by the end of the fourth quarter.

Published by Globes [online], Israel business news - www.globes-online.com - on July 7, 2014

Copyright of Globes Publisher Itonut (1983) Ltd. 2014

 
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