Can-Fite BioPharma Ltd. (TASE:CFBI; Bulletin Board: CANFY) raised NIS 26.5 million in its secondary offering on the Tel Aviv Stock Exchange (TASE) yesterday, after the NIS 20 million offering of shares and warrants was oversubscribed by 60%. The capital was raised from foreign investment funds that specialize in the life sciences.
Can-Fite offered 69,270,000 shares at NIS 0.314 per share, amounting to 20.2% of its issued share capital, and two series of warrants exercisable for 79.37 million shares. Can-Fite's share price rose 5.6% by midday to NIS 0.338, giving a market cap of NIS 93 million, after falling 24.7% yesterday on the announcement of the offering.
If the warrants in the offering are exercised in full, Can-Fite will raise an additional NIS 27 million.
Can-Fite will use the proceeds to support its clinical activity, including the publication of the results of three advanced clinical trials, and to complete patient recruitment of a Phase II/III trial of its drug for the treatment of psoriasis.
Can-Fite CEO Prof. Pnina Fishman said, "The business and treatment potential of our drugs was greatly strengthened today by the results of the foreign funds' investment in the company. The new investors know how to correctly assess the potential of our broad products offering, and decided to invest in the company as part of an offering in Israel."
Published by Globes [online], Israel business news - www.globes-online.com - on February 5, 2013
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