Published On: Wed, Feb 25th, 2015

Israel’s Check-Cap Raises $24 Million in IPO

The company closed its initial public offering of 2, 000, 000 units on February 24, 2015.

Check-Cap

Israel’s Check-Cap Ltd., a clinical stage medical diagnostics company engaged in the development of a preparation-free ingestible imaging capsule that utilizes low-dose X-rays for the screening for colorectal cancer, closed its initial public offering of 2, 000, 000 units on February 24, 2015.

The aggregate proceeds to Check-Cap from its initial public offering and simultaneous private placement, before deducting underwriting discounts, commissions and offering expenses, was $24 million.

The Company intends to use the net proceeds from its initial public offering and simultaneous private placement to finance its’ clinical program, product development and general corporate purposes.

Each unit consisted of one ordinary share and one-half of a Series A Warrants to purchase one ordinary share at a price of $6.00 per unit. Each unit was issued with one and one-half non-transferrable Long Term Incentive Warrants. The Series A Warrants have an exercise price of $7.50 per share and will expire on February 18, 2020. The Long Term Incentive Warrants have an exercise price of $6.90 per share and will expire on February 18, 2022. Simultaneous with the closing of the initial public offering, Check-Cap closed a private placement of 2, 000, 000 units, each unit consisting of one ordinary share and one-half of a Series A Warrants to purchase one ordinary share, at $6.00 per unit.

Each unit was issued with one and one-half non-transferrable Long Term Incentive Warrants.

Check-Cap’s units began trading on the NASDAQ Capital Market on February 19, 2015 under the ticker symbol “CHEKU.” The units will automatically separate on April 6, 2015 unless Chardan Capital Markets, LLC, as representative of the underwriters, determines that an earlier date is acceptable and thereafter, the ordinary shares underlying the units and the Series A Warrants will trade separately under the symbols “CHEK” and “CHEKW, ” respectively.

Check-Cap has granted the underwriters a 45-day option to purchase up to an additional 300, 000 units, each consisting of one ordinary share and one-half of a Series A Warrant (to be issued together with up to an additional 450, 000 Long Term Incentive Warrants), at the initial public offering price per unit, less the underwriting discount, solely to cover over-allotments, if any.

Chardan Capital Markets, LLC and Maxim Group LLC acted as joint book-running managers for the public offering. Feltl and Company acted as a co-manager for the public offering.

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