Check-Cap is developing a capsule-based screening system for precancerous polyps.
Check-Cap (Nasdaq: CHEK), which is developing an x-ray imaging capsule for detecting polyps in the colon liable to develop into cancer, has announced a $7.5 million financing round.
The company is in the midst of clinical trials of its product in the US. The financing round was at $2.58 per unit. Each unit consists of one ordinary share (or ordinary share equivalent), and a warrant to purchase one half ordinary share at $2.58 per share. This share price in the offering constitutes a 25% discount on the market price before the announcement. When the warrants are included, the discount is even greater. Check-Cap's share price is down 25% in Nasdaq pre-trading.
Before the start of today's trading, Check-Cap's market cap was $18 million. The company hopes to use the proceeds to develop its product. Since its IPO on Nasdaq in 2015, Check-Cap's share price has plummeted 93%. The reason is delays in the company's clinical trials, plus a trial in which the product was not good enough at detecting tumors. The company began another trial and published better results last September, but the share price failed to respond positively to these results.
Published by Globes, Israel business news - en.globes.co.il - on February 4, 2019
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Check Cap management photo: Nasdaq OMX