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Check-Cap Shares Are Trading Lower On Capital Raise Of $35M To Support C-Scan Development

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  • Check-Cap Ltd (NASDAQ: CHEK) has announced a registered direct offering of 25.9 million shares, with approximately $35 million in gross proceeds.

  • Each ordinary share is being sold together with one short-term warrant at a combined price of $1.35 per common share and accompanying warrant.

  • The short-term warrants will have a term of two and one-half years following the date of issuance, with an exercise price of $1.50 per ordinary share.

  • Full exercise of the warrants would generate additional gross proceeds of approximately $38.9 million.

  • The offering will close by July 2.

  • The offer price is at a 10.6% discount on the last close price of $1.51 on Tuesday.

  • H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

  • Proceeds will be used to advance the ongoing clinical development of C-Scan, a preparation-free screening test to detect polyps for colorectal cancer diagnosis.

  • In March, the FDA signed off a pivotal study of C-Scan to evaluate the safety and performance of C-Scan as well as subject compliance with C-Scan.

  • Price Action: CHEK shares are down 21.9% at $1.18 during the market session on the last check Wednesday.

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