Biomedical company Kitov Pharmaceutical Holdings Ltd. (TASE: KTOV) has submitted a prospectus for raising up to $12.5 million on Wall Street. The company, whose market cap on the TASE is NIS 26 million, is planning an American Depository Share (ADS) offering - bonds that track a share traded on a foreign stock exchange. After the offering, the company's listing on the secondary Nasdaq exchange is expected.
The underwriter for the issue is Rodman & Renshaw. As of the end of the second quarter of 2015, Kitov had $1.7 million in cash. Managed by CEO Isaac Israel, Kitov develops combination drugs - combinations of existing drugs - aimed at either improving treatment or reducing side effects. The company recently announced its acquisition of Nextgen-Biomed, whose activity has been suspended, from Dermipsor in a deal with a total value of $1.2 million.
At the current share price, the planned offering should raise $10.8 million, or $12.5 million if the underwriters choose to exercise their green shoe option to buy additional shares.
In its prospectus, Kitov notes that it is planning to use the proceeds from its offering for several purposes, including a Phase III trials for its leading product for treatments of arthritis ($1.5 million), refinancing existing debt ($600,000), and developing additional products ($1-3 million). Kitov is expected to report initial results of the Phase III trial of its product, KIT-302, this year.
Published by Globes [online], Israel business news - www.globes-online.com - on November 8, 2015
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