Cancer drug company <a target=new href=http://www.biocancell.com/>BioCanCell Therapeutics Ltd.</a> (TASE:<a href=Javascript:viewInstrument('1098342',45,'EN')>BICL</a>) has completed a $23 million financing round, led by Shavit Capital Fund, with participation from leading shareholder <a target=new href=http://www.cbi.co.il/>Clal Biotechnology Industries Ltd.</a> (TASE: <a href=Javascript:viewInstrument('11042806',45,'EN')>CBI</a>). The agreement is designed to enable the company to complete its Phase III trial of its lead product for treatment of bladder cancer.
<p>BioCanCell previously announced its intention of listing for trading on Nasdaq, and possibly delisting from the TASE at a later stage. The Shavit Fund is known for investing in companies before they embark on share offerings.
<p>The financing round was held at NIS 1.35 per share, 3.4% higher than yesterday's share price before the announcement. Investors also received options to buy shares in the company, at a ratio of 0.8 options per one share purchased, with a strike price of NIS 1.60 per share, 24% higher than the current price. Investors will also be given price protection if the company holds a share offering at a price 30% lower than the price in the current investment.
<p>BioCanCell reported in January that it planned to raise $25 million in a round led by a private fund, but Shavit's name was not mentioned. The share price cited at the time was NIS 1.60; the deal was eventually closed at a slightly lower price.
<p>The leading shareholders in BioCanCell before the current round, who also took part in it, are Clal Biotechnology (44%), Edgewater Partner Holdings fund (20%), and Palisade Capital Management fund (19.4%). Clal Biotechnology will invest $3 million in the current round, leaving it with a 32% stake. BioCanCell's market cap is NIS 125 million, and Clal Biotechnology's is NIS 450 million. The two companies' share prices did not respond to the announcement of the financing round.
<p>BioCanCell stated last year that it had an offer from private investors to invest in the company, but on condition that it became a private company. That was the underlying motive of the offer to purchase published by BioCanCell at NIS 1.40 per share, which actually reflected a lower price, because it included options. Investors rejected the offer to purchase, but the company's share price subsequently doubled, thereby making possible the current investment, which bolstered both the dispersion and marketability of BioCanCell's shares.
<p>BioCanCell's lead product is designed to treat bladder cancer. The company wants to start a Phase III trial (either simultaneously with or following another Phase III trial for confirmation) of the drug. Since 2016, the company's CEO has been Dr. Frank Haluska, former ARIAD Pharmaceutical CMO and SVP clinical R&D.
<p><i>Published by Globes [online], Israel business news - <a href=http://www.globes-online.com>www.globes-online.com</a> - on April 12, 2018</i>
<p><i>© Copyright of Globes Publisher Itonut (1983) Ltd. 2018</i>