Attempting to Delist, Cancer Treatment Company BioCanCell Issues New Shares
The company diluted existing investors that opposed its plans to delist from the Tel Aviv Stock Exchange
Dror Reich | 13:04 23.04.2018
Cancer treatment company BioCanCell Ltd. is looking to delist from the Tel Aviv Stock exchange as part of a $22.8 million investment deal, but a shareholder group that holds a 4%-5% stake is impeding the move. Now the company and its parent company Clal Biotechnology Industries Ltd. are issuing new securities to dilute the group's stake and lessen their control.
For daily updates, subscribe to our newsletter by clicking here.BioCanCell is a clinical-stage company developing gene therapies for cancer, with a special focus on early stage bladder cancer. Founded in 2004, the company is based in Jerusalem, Israel and Cambridge, Massachusetts.
If Clal leads a new acquisition offer now, the decision to sell will hinge more on Yelin Lapidot than on the reluctant shareholder group, whose stake has been diluted.Another possible avenue to delist BioCanCell from Tel Aviv is through an initial public offering in the U.S. The company stated in January it would seek a U.S. IPO in 2018. By listing overseas the company would be able to delist from Tel Aviv without a go-ahead from the shareholder minority, as they would be issued new stock instead.