Israeli drug development company Kitov Pharma Ltd. (Nasdaq: KTOV; TASE: KTOV) has raised $35 million from institutional investors, after its shares had jumped 100% over the past few days for no obvious reason and without any reports. However, yesterday "Seeking Alpha" reported that the jump was due to Kitov's plans for a cancer treatment collaboration with Bristol Myers Squibb, although Kitov has not reported on the matter.
Before raising the money, Kitov's market cap was $62 million. The company's share price is down 16% today on the Tel Aviv Stock Exchange.
In the financing, Kitov has sold 38,888,892 ordinary shares for $0.90 to healthcare-focused institutional investors. The offering will close tomorrow and H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.
Kitov is a clinical-stage company advancing first-in-class therapies to overcome tumor immune evasion and drug resistance.
Kitov intends to use the net proceeds of this offering to fund the development of its oncology drug candidates, acquisition of new assets and for general working capital purposes.
Kitov CEO Isaac Israel said, "The company is undergoing positive momentum. We don't know how to fully explain the rise in the share price on the day of the offering but we chose to take advantage of the opportunity to raise a significant sum."
Published by Globes, Israel business news - en.globes.co.il - on June 24, 2020
© Copyright of Globes Publisher Itonut (1983) Ltd. 2020