Can-Fite BioPharma Ltd. (TASE:CFBI) will dual list on Wall Street, by issuing American Depositary Receipts (ADRs), following similar moves by BiolineRX Ltd. (Nasdaq: BLRX); TASE:BLRX) and Hadasit Bio Holdings Ltd. (TASE:HDST; Bulletin Board: HADSY).
Can-Fite plans to issue Level II ADRs, subject to approval by the US Securities and Exchange Commission (SEC), which will give it the right to list on Nasdaq or the New York Stock Exchange (and not just on the Bulletin Board as is the case with Level I ADRs). However, a Level II ADR does not require submitting a prospectus with the SEC, precluding the possibility of raising capital in the US.
Last year, Can-Fite spun off its ophthalmic drug development business and floated it on Wall Street by acquiring a stock market shell, Denali. OphthaliX Inc. (Bulletin Board: OPLI), in which Can-Fite owns an 82% stake, now has a market cap of $139 million.
Can-Fite CEO Pnina Fishman said, "This action will expand our trading volume and exposure to a very professional capital market, both at the level of analysts and level of investors; a market that is very familiar with our field."
Fishman said that Can-Fite decided to list in New York at this time because it has met several milestones, which give the chance of catching the attention of investors, and not because of the exposure it won through OphthaliX.
Can-Fite also announced the interim report on Phase II/III clinical trial of CF101 for the treatment of psoriasis is due in a few months. The trial in the US and Europe, includes 313 patients under US Food and Drug Administration (FDA) Investigational New Drug (IND) protocols. The company is also due to publish the results of the Phase IIb Clinical Trial of CF101 for the treatment of rheumatoid arthritis in a few months. A previous trial for this indication failed, but the company made two changes for the new trial, in hopes of a better result: the ten patients were selected on the basis of a biomarker developed by the company, which predicts a patient's response to the treatment; and the drug is being delivered independently, rather than in combination with an existing treatment.
Can-Fite's share price was unchanged today at NIS 0.328, giving a market cap of NIS 89 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 4, 2012
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