Representation of Check-Cap Ltd. in a warrant exercise transaction with several existing institutional investors who were holders of certain outstanding warrants to purchase the Company’s ordinary shares issued in prior registered direct offerings.
In connection with the transaction, the holders exercised in cash their prior warrants, at a reduced exercise price of $0.6 per share. In addition, the Company issued to the holders new unregistered warrants to purchase 120% of the number of ordinary shares underlying the prior warrants, at an exercise price of $0.8 per share. The Company received gross proceeds from the transaction of approximately $9.6 million.
FBC also represented Check-Cap in its application to the Israel Tax Authority for an exemption from Israeli withholding tax in connection with the transaction.
H.C. Wainwright & Co., LLC served as exclusive placement agent for the offering.
Check-Cap (NASDAQ: CHEK) is a clinical stage medical diagnostics company aiming to redefine colorectal cancer screening and prevention through the introduction of C-Scan®, a patient-friendly preparation-free screening test to detect polyps before they may transform into cancer.