Cancer Screening Company Check-Cap Crashes on $7.5 Million Nasdaq Direct Offering

Israel-based cancer screening company Check-Cap Ltd. is raising $7.5 million in a registered direct offering on Nasdaq, the company announced Monday, with H.C. Wainwright & Co. as the placement agent.

Founded in 2004, clinical-stage Check-Cap develops a capsule-based screening method for colorectal cancer prevention via the identification of precancerous polyps. The company listed in Nasdaq in 2015.

The company stated it has already entered into definitive agreements with institutional investors for the purchase of shares plus warrants at $2.58 per unit, a discount on its Friday close of $3.44. The company expects to close the offering on Wednesday.

Following the announcement, Check-Cap closed 27.62% down on Monday.