Check-Cap Ltd. (CHEK)

[georgie18]

CHEK… $1.05...in the P/M... :party:
Check-Cap Ltd. said it has entered into definitive agreements with several institutional and accredited investors for the purchase and sale of 25.9 million ordinary shares and accompanying short-term warrants to purchase up to 25.9 million shares in a registered direct offering.
Each ordinary share is being sold together with one short-term warrant to purchase one ordinary share at a combined offering price of $1.35 per ordinary share and accompanying warrant.
The short-term warrants will have a term of two and one-half years following the date of issuance, be exercisable immediately and have an exercise price of $1.50 per ordinary share. The registered direct offering is expected to close on or about Friday.
The gross proceeds to Check-Cap from this offering are expected to be $35 million. Full exercise of the warrants would generate additional proceeds of $38.9 million.
The company said it currently intends to use the proceeds to advance the ongoing clinical development of C-Scan, and for general corporate purposes.
 Check-Cap shares were down 27%, to $1.09, in premarket trading.
Write to Chris Wack at [e-mail]