Check-Cap (NSDQ:CHEK) late last week announced an upcoming offering looking to raise approximately $17.5 million.
In the offering, the Isfiya, Israel-based company will look to float approximately 3.2 million units for $5.50 per unit. Each unit in the offering consists of a single ordinary share or ordinary share equivalent and a Series C warrant to purchase one ordinary share.
The ordinary shares or equivalents and accompanying Series C warrants can only be purchased together in the offering, but will be issued separately and will be immediately separable upon issuance, Check-Cap said in a press release.
The offering also includes a 30-day underwriter’s offering for an additional 478,407 shares and warrants to purchase an additional 478,407 shares, the company said. The offering is expected to close May 8.
After announcing the offering last Friday, the company saw shares fall up to 48%, according to a Globes report. Shares have fallen 3.3% in trading today, at $4.40 per share as of 1:52 p.m. EDT.
Last month, Check-Cap said it initiated a 1-for-12 reverse stock split as it looked to regain compliance with the NASDAQ stock market’s minimum bid pricing requirement.
