Check-Cap raises $8m

Check-Cap (NSDQ:CHEK) said today that it inked a direct registered offering deal worth approximately $7.5 million to support the continued development of its C-Scan system.

The Israel-based company’s C-Scan system is designed as an alternative to standard colon cancer screening methods. The system uses an ingestible, ultra-low dose X-ray capsule and a wireless tracking system to return structural information on the lumen of the colon to create 2D and 3D maps.

In the placement, Check-Cap said that it sold approximately 2.9 million units, consisting of a single ordinary share and a warrant to purchase one half of an ordinary share, at $2.58 per unit. The warrants in the offering have a five-year term and are exercisable immediately, with an exercise cost of $2.58 per share.

Funds raised from the offering will support continued development of it C-Scan system and for general corporate purposes, Check-Cap said. The offering is expected to close on February 6.

H.C. Wainwright & Co are acting as exclusive placement agents in the offering, the company said in a press release.

In December, Check-Cap said that it won conditional approval from the FDA for its investigational device exemption application to launch a pilot study of its C-Scan system.

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