Colon capsule developer Check-Cap has signed a definitive agreement to receive approximately $2.7 million in financing.
A single healthcare-focused institutional investor has agreed to purchase 1.4 million ordinary shares of Check-Cap at a purchase price of $2 per share, according to the company. Concurrently, Check-Cap said it will also issue one-year warrants for the purchase of up to 1.4 million of its ordinary shares at an exercise price of $2.125 per share. Those warrants are immediately exercisable.
Check-Cap would receive approximately $2.7 million gross proceeds at the closing of the offering, and approximately $5.6 million total gross proceeds if the warrants are exercised in full in cash. The company expects the offering will close on or before June 2, subject to the satisfaction of customary closing conditions. Rodman & Renshaw is serving as the exclusive placement agent for the offering.
The Israeli company is developing C-Scan, an ingestible capsule-based system aimed at enabling preparation-free colorectal cancer screening. The net proceeds from the offering will be used to advance the ongoing clinical development of C-Scan and for general corporate purposes, Check-Cap said.
