Israeli startup InnoCan Pharma, which develops drugs containing material produced from cannabis for skin diseases, today announced the completion of a NIS 3 million ($800,000) financing round. InnoCan's chairperson is former Teva Israel CEO Ron Mayron, its CEO is Iris Bincovich, and its founder is Yoram Drucker, cofounder of Brainstorm (Nasdaq: BCLI) and Pluristem Therapeutics Ltd. (Nasdaq:PSTI; DAX: PJT: PLTR).

The financing round, while small, is unusual and the first of its kind in Israel, as far as is known. No venture capital funds or angels are involved; 500 investors bought shares in the company through the Pipelbiz crowdfunding platform. The method, called Offering Coordinator, was introduced late last year by the Israel Securities Authority. Companies could previously offer their shares without a prospectus to a maximum of 35 ordinary investors and an unlimited number of classified investors, that is, investors with NIS 8 million in liquid assets or an annual income of NIS 1.2 million.

Starting on December 26, 2017, however, following an amendment to the Securities Law, companies can raise capital for shares without restriction on the number of investors and with no minimum income requirements. Investments under this method will be coordinated through an authorized crowdfunding platform, whose job it is to make the deals transparent for investors from the general public without a prospectus. The minimum investment is NIS 1,000.

InnoCan announced its founding early last month and then embarked on a crowdfunding financing round. The company's drugs combine conventional drugs with materials produced from cannabis. The aim is have the finished product defined as a drug by the regulator, but through an abbreviated process designed for over-the-counter dermatological products.

Published by Globes [online], Israel business news - www.globes-online.com - on August 27, 2018

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