Attention deficit hyperactivity disorder (ADHD) treatment developer Alcobra Ltd. plans to issue 1,365,000 shares at $10-20 per share, according to the draft prospectus filed with the US Securities and Exchange Commission (SEC) today. The company plans to raise a gross $13.7-16.4 million at a company value of $92.5-110.9 million, after money. The company will be listed on Nasdaq under the ticker "ADHD".
Aegis Capital Corporation, which has a track record in floating new life sciences companies, will be the underwriter. Alcobra gave the investment bank an over-allotment option to buy up to 204,750 shares, which if exercised in full, will increase the gross proceeds by $2-2.5 million.
In the prospectus, Alcobra says that, in September 2011, it successfully completed a Phase II clinical trial of its drug, MG01CI, which included 120 patients, of its drug, and that it will commence a Phase II/III trial after the IPO. The IPO is intended to finance the heavy investment needed for this study. The company has raised $5.8 million since it was founded in 2008, but has only $97,000 in cash reserves.
Alcobra's founders, Dr. Dalia Megiddo and Udi Gilboa, will own 30.6% and 29.9% of the company, respectively, after the IPO. Based on the prospectus, the stakes will be worth up to $31 million and $30 million, respectively. Hadasit - the Technology Transfer Company of Hadassah Medical Organization owns 8.2%, and Alcobra CEO Dr. Yaron Daniely owns options exercisable for 1.7% of the company. Some of the options were granted for almost nothing compared with the planned IPO price.
Published by Globes [online], Israel business news - www.globes-online.com - on March 19, 2013
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