- Can-Fite BioPharma Ltd. announces a $3.0 million registered direct offering of American Depositary Shares (ADSs).
- The company will issue 2,500,000 ADSs at a price of $1.20 per share, closing expected by April 15, 2025.
- Funds will support research and development, clinical trials, working capital, and general corporate uses.
Can-Fite BioPharma Ltd. (CANF, Financial) has declared a $3.0 million registered direct offering involving 2,500,000 American Depositary Shares (ADSs) at a price of $1.20 per share. This offering represents a significant dilutive event, as the offering price reflects a discount to the current market price of $1.57. The transaction is anticipated to close around April 15, 2025, pending customary closing conditions.
H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering under a shelf registration statement initially filed with the U.S. Securities and Exchange Commission (SEC) on September 1, 2023. The net proceeds, projected to be applied towards research and development, clinical trials, working capital, and general corporate purposes, aim to accelerate Can-Fite's pipeline of proprietary small-molecule drugs targeting cancer and inflammatory diseases.
While this capital raise will increase Can-Fite's outstanding shares by approximately 35.8%, stakeholders should note the potential dilution effect. The finance mechanism adopted—a registered direct offering—suggests an urgent need for capital, highlighting possible cash constraints that industry observers may wish to monitor closely.
