Can-Fite BioPharma Ltd. (NYSEMKT: CANF) has been on a tear recently and is lighting up the markets. It recently announced that its oncology drug candidate for the treatment of hepatocellular carcinoma (HCC) was granted Orphan Drug Designation in Europe following a Fast Track designation gained in the United States. Now, the company announced that it has entered into definitive agreements with existing institutional investors in regard to a secondary offering.
The company will issue roughly 1.11 million American depositary shares (ADSs) at a purchase price of $4.35 per ADS in a registered direct offering. The offering is expected to close on or about October 15, subject to the satisfaction of customary closing conditions.
Additionally, for each ADS purchased by investors, the investors will receive an unregistered warrant to purchase 40% of an ADS. The warrants have an exercise price of $5.25 per ADS, shall be exercisable six months following the issuance date and will expire five and one-half years from the issuance date.
Pnina Fishman, CEO of Can-Fite, said:
Following our recent $9 million fund raise in September, we are pleased that the same institutional investors who participated in last month’s round have invested again in Can-Fite’s current registered direct offering. We believe this reflects growing confidence in our company.
So far in 2015, Can-Fite has outperformed the market and the stock is up 33.1% year to date. Over the past 52 weeks, the stock is up 49.4%.
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Can-Fite is an advanced clinical stage drug-development company with a platform technology that is designed to address multi-billion-dollar markets in the treatment of cancer, inflammatory disease and sexual dysfunction. The company has a pipeline of proprietary small molecule drugs that address the aforementioned diseases.
Shares of Can-Fite were down 9% at $4.24 late Tuesday morning. The stock has a consensus analyst price target of $4.00 and a 52-week trading range of $1.46 to $7.85.
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