Check-Cap Ltd. (NASDAQ:CHEK) has revealed on Monday that it has entered into a $5.90-million registered direct offering agreement with an institutional investor. Subject to regulatory requirements, the deal is expected to close on Thursday.
Terms of the Agreement
The agreement involves a total of 643,614 ordinary shares worth $1.90 each and 2.50 million pre-funded warrants worth $1.85 each. Once all warrants have been exercised, Check-Cap will generate a total of $6 million in gross proceeds.
The net proceeds from the deal will be used primarily for the ongoing clinical development of the company’s colorectal cancer screening platform and other corporate expenses.
For this agreement, Chardan Capital Markets LLC served as the exclusive placement agent while Roth Capital Partners and Maxim Group LLC both served as financial advisors.
Check-Cap’s Partnership with GE Healthcare Ltd.
Last week, Check-Cap confirmed that it had also struck a collaboration agreement with GE Healthcare for the development of X-ray source production and assembly and evaluate high-volume manufacturing into the former’s capsule.
Bill Densel, Check-Cap CEO, expressed in behalf of the company that he is excited to work with GE Healthcare as part of its efforts to improve its offerings. As a global leader in the pharmaceutical and biotechnology industry, Densel believes that GE Healthcare will help Check-Cap to further explore potential developments and innovations, especially when it comes to colorectal cancer.
Check-Cap on Colorectal Cancer
Presently, colorectal cancer is one of the leading cancer-related deaths in the US. So far this year, there are already 49,000 deaths caused by and/or associated with colorectal cancer.
In its attempts to develop safe and effective treatments and improve the lives of colorectal cancer patients, Check-Cap is working on a multicenter clinical feasibility study.
Recently, the company has received a grant of about $1.25 million from the Office of the Chief Scientist (OCS) in Israel. Check-Cap intends to use the funding primarily for the ongoing clinical development of its capsule technology.
The OCS aims to support the innovative research and development (R&D) efforts and initiatives in Israel, believing that it is a way of facilitating and boosting economic growth.