Israeli ADHD drug development company Alcobra Ltd. (Nasdaq: ADHD) has raised $40.1 million in a secondary offering on Nasdaq. The company announced on Friday that it had priced its public offering of 6,175,000 ordinary shares at $6.50 per share.
Jefferies LLC and Barclays Capital Inc. are acting as joint book-running managers for the offering. Oppenheimer & Co. Inc., Roth Capital Partners, LLC and Cantor Fitzgerald & Co. are acting as co-managers. The underwriters received an option to buy shares which would increase the amount raised by $6 million.
At the end of the third quarter, Tel Aviv-based Alcobra had $35.5 million in cash reserves. The share price in the latest offering represents a 13.4% discount on the company's share price on Wednesday before the offering was announced. On Friday, the share price fell 12.2% to $6.25, giving Alcobra a market cap of $132 million.
Led by CEO Yaron Daniely, Alcobra is developing treatments for cognitive disorders including Attention Deficit Hyperactivity Disorder (ADHD), Fragile X Syndrome.
Since its Nasdaq IPO in 2013, when it raised $25 million at $8 per share, Alcobra raised a further $33 million at $16.50 per share. Desite the failure of its ADHD treatment drug trial in 2014, Alcobra raised a further $26 million at $4 per share.
Alcobra plans to use the net proceeds from the latest offering to fund its future clinical development program and for general corporate purposes.
Published by Globes [online], Israel business news - www.globes-online.com - on November 15, 2015
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