Check-Cap raises $6m

Check-Cap (NSDQ:CHEK) said today it raised $5.9 million through a direct placement with a single health-care focused institutional investor.

The money comes through the sale of 643,614 ordinary shares at $1.90 per share and 2.5 million pre-funded warrants in lieu of ordinary shares at $1.85 per warrant, which are exercisable at 5¢ per share. If all warrants are exercised, gross proceeds would be $6 million.

Funds from the round are slated to go towrads advancing the clinical development of its colorectal cancer screening system, and for general corporate purposes, Check-Cap said. The placement is expected to close August 11.

Chardan Capital Markets acted as the exclusive placement agent for the offering, with Maxim Group and Roth Capital Partners acting as financial advisors.

Last Wednesday, Check-Cap said it inked a development and manufacturing validation deal with GE Healthcare (NYSE:GE) for integrating X-ray source production and assembly into Check-Cap’s indigestible capsule designed for colorectal screening.

The deal comes with the possibility for collaboration on the execution of a high-volume manufactuing facility and distribution of the Check-Cap system after completion of the initial deal, according to Israel-based Check-Cap.

Check-Cap said it is currently conducting a multi-center clinical feasibility study and expects to file a CE Mark submission in the 1st half of 2017.

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