Check-Cap (NSDQ:CHEK) said today it closed previously announced definitive agreement with an unnamed healthcare focused institutional investor for $2.7 million.
Money in the round came from the sale of 1.4 million shares of stock at $2 per share, the Israel-based company said, with funds slated to support the ongoing development of its C-Scan device.
The round also included the sale of 1-year warrants to purchase an additional 1.4 million shares at an exercise price of $2.13 per share. The warrants are immediately exercisable, the company said, with the possibility for an additional $2.9 million if all warrants are exercised in full, according to a press release.
H.C. Wainwright & Co.’s Rodman & Renshaw acted as an exclusive placement agent for the offering, the company said.
In May, CheckCap said that it and its collaborative partner GE Healthcare (NYSE:GE) reached an initial milestone in their X-ray capsule manufacturing capabilities, while Check-Cap also saw shares rise after it released 1st quarter earnings that topped the Street.
Check-Cap said that X-ray sources produced at GE using custom manufacturing methods passed all tests required for compliance with C-Scan system specifications.