Check-Cap Sells Shares in Private Placement

Check-Cap fell in morning trade Tuesday after it said it has entered into a definitive agreement with a single health-care focused institutional investor for the purchase of 1,349,500 ordinary shares, at a purchase price of $2.00 per share.

Concurrently, in a private placement, the company said it will issue one-year warrants to purchase up to 1,349,500 of its ordinary shares, at an exercise price of $2.125 per share, that are immediately exercisable. The company says it will receive approximately $2.69 million gross proceeds at the closing of the offering and approximately $5.57 million total gross proceeds in the event that the warrants are exercised in full in cash. The offering is expected to close on or before June 2, subject to satisfaction of customary closing conditions.

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