Business
Check-Cap Announces Exercise of Warrants For $9.6 Million Gross Proceeds
ISFIYA, Israel, July 23, 2020 /PRNewswire/ -- Check-Cap Ltd. (the "Company" or "Check-Cap") (NASDAQ: CHEK) (NASDAQ: CHEKZ), a clinical stage medical
About this update from Check-cap Ltd.
[{"type":"text","content":"ISFIYA, Israel, July 23, 2020 /PRNewswire/ -- Check-Cap Ltd. (the \"Company\" or \"Check-Cap\") (NASDAQ: CHEK) (NASDAQ: CHEKZ), a clinical stage medical diagnostics company advancing the development of the C-Scan®, the first and only patient-friendly preparation-free screening test to detect polyps before they may transform into cancer, today announced that it has entered into a definitive agreement with several existing institutional investors for the exercise of certain outstanding warrants to purchase up to an aggregate of 16,054,223 of its ordinary shares at a reduced exercise price of $0.60 per share. The warrants being exercised were issued by Check-Cap on several dates from November 2017 through May 2020 and have exercise prices ranging from $15.00 to $0.80 per share. \n \n \nH.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.\nThe ordinary shares issuable upon exercise of the warrants are registered, as applicable (1) for resale pursuant to an effective registration statement on Form F-1 (File No. 333-238532), which became effective by the Securities and Exchange Commission (SEC) on June 5, 2020, (2) pursuant to a prospectus supplement dated as of February 4, 2019 forming a part of an effective registration statement on Form F-3 (File No. 333-225789), which became effective by the SEC on July 16, 2018, and (3) for resale pursuant to an effective registration statement on Form F-3 (File No. 333-225789), which became effective by the SEC on July 16, 2018. \nIn consideration for the immediate exercise of the warrants for cash, the exercising holders will receive new unregistered warrants to purchase ordinary shares in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the \"1933 Act\"). The new warrants will be exercisable into an aggregate of up to 19,265,068 ordinary shares, at an exercise price of $0.80 per share and have a term of five and one-half years from the date of issuance. \nThe gross proceeds to Check-Cap, before deducting placement agent fees and other offering expenses, are expected to be approximately $9.6 million. The closing of the offering is expected to occur on or about July 27, 2020, subject to the satisfaction of customary closing conditions. \nThe Company intends to use the net proceeds from this offering to advance the ongoing cl...