Check-Cap (NSDQ:CHEK) said today it inked a definitive agreement with an institutional investor for approximately $2.7 million in gross proceeds, with the possibility of up to $5.6 million upon the exercise of warrants purchased in the offering.
The Israel-based company said it floated approximately 1.4 million ordinary shares at $2 per share, as well as 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.
The private offering is expected to close before June 2, Check-Cap said, with funds slated to support the ongoing development of its C-Scan device, according to a press release.
Earlier this month, 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.