Check-Cap announced plans to raise approximately $27 million with a $15 million initial public offering and a $12 million private placement, saying it will use the proceeds to develop its ingestible low-dose X-ray imaging capsule.
Isfiya, Israel-based Check-Cap registered the IPO Dec. 23 with the SEC, but has yet to determine its timing and pricing.
Chardon Capital Markets and Maxim Group will serve as joint book-runners for the offering, according to a press release. Check-Cap said it plans to trade on the NASDAQ exchange under the “CHEK” symbol.
In conjunction the IPO, Check-Cap said it also intends to launch a $12 million private placement with a group of unnamed investors.
Check-Cap plans to use proceeds from both transactions to fund development of its ingestible imaging capsule, designed to use low-dose X-rays to screen patients for colorectal cancer, according to the filing.
"Our imaging capsule is being designed to create a reconstructed 3-dimensional image of the colon and to enable detection of clinically significant polyps with a high degree of sensitivity," the company said. "Our imaging capsule will be swallowed by the patient and propelled by natural motility through the gastrointestinal tract and excreted naturally with no need for retrieval for data collection."
Check-Cap said the capsule is designed to transmit data to an external recorder worn by the patient, which in turn would transfer the data to physicians.
"We intend for physicians to be able to review the colon’s inner images at any location at any time, in less time than is required to perform an optical colonoscopy," the company said. "In order to enable a complete view of capsule positioning and motility, we have designed a capsule positioning system, or CPS, which is mounted on the patient’s back throughout the entire procedure. The CPS is being designed to provide the physician with accurate localization data aligned with a reconstructed image."