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Tag: Check-Cap

  • Analyzing The Pre-Market Surge In Check-Cap (CHEK)

    Analyzing The Pre-Market Surge In Check-Cap (CHEK)

    The surge observed in Check-Cap Ltd. (NASDAQ: CHEK) shares on the US stock exchange denotes a noteworthy escalation of 52.85%, culminating at $2.95 per share as of the last check. Check-Cap concluded the previous session’s trading at $1.97 after experiencing a decline of 3.68%. This significant increase in CHEK’s stock valuation during the pre-market session is attributed to the announcement of a business combination move made by the company today.

    Check-Cap (CHEK) has declared its entry into a definitive Business Combination Agreement with Nobul AI Corp. Per the agreement, Nobul’s shareholders will emerge as the principal holders of the merged entity. If finalized, this business combination will establish a publicly traded company headquartered in Toronto, Canada, with a focus on an AI-driven fintech marketplace, as well as the acquisition and AI-enablement of conventional companies to deliver enhanced returns for its shareholders.

    In conjunction with the transaction, the merged entity will seek listing on the NASDAQ and TSX, subject to meeting all listing criteria and obtaining approval from the NASDAQ and TSX. The leadership team of Nobul will assume roles within the combined entity, with Regan McGee, Nobul’s Founder, Chief Executive Officer, and Chairman, at the helm.

    Following a thorough review of strategic options, Check-Cap’s Board of Directors has determined that the proposed transaction with Nobul aligns with the best interests of shareholders. CHEK intends to convene a special shareholders’ meeting in the forthcoming months to vote on this business combination. Nobul has a proven track record of closing M&A and PE deals, and this merger will provide the business the ability to pursue more of these advantageous deals as a publicly traded firm.

    The proposed merger was approved by the boards of both companies. However, in accordance with the rules of the Israeli Companies Law, the business combination is subject to the approval of Check-Cap shareholders at a special meeting, as well as the fulfillment or waiver of other usual criteria, such as regulatory and exchange clearances. It is expected that the special shareholders’ meeting will happen in the upcoming months.

  • Check-Cap Ltd. (CHEK) Stock Plummets Following News of Registered Direct Offering

    Check-Cap Ltd. (CHEK) Stock Plummets Following News of Registered Direct Offering

    Check-Cap Ltd. (CHEK) stock prices were down by 19.5364% some time after market trading commenced on June 30th, 2021, bringing the price per share down to USD$1.2150 early on in the trading day.

    Registered Direct Offering

    The company announced on June 30th, 2021 that it had entered into various definitive agreements with institutional and accredited investors. As per the agreement, the company would put up 25,925,926 ordinary shares of the company for sale, along with warrants to purchase up to the same number of ordinary shares. The registered direct offering is seeing each ordinary share being sold in conjunction with one short-term warrant to purchase one ordinary share at a combined offering price price of USD$1.35 per ordinary share and accompanying warrant.

    Share Warrants

    The short-term warrants will have an expiry date of two and a half years following the date of issuance and will be exercisable immediately with an exercise price of USD$1.50 per ordinary share. The closing of the registered direct offering is expected to close on July 2nd, 2021, pending the satisfaction of customary closing conditions.

    Capital Generation

    CHEK forecasts generating roughly USD$35 million in gross proceeds from the offering, before the deduction of expenses related to the offering. This number does not include proceeds received from the exercising of warrants, the full exercising of which will generate additional gross proceeds of roughly USD$38.9 million before the deduction of offering-related expenses. The capital generated from the offering is planned on being allocated towards advancing the ongoing clinical development of C-Scan, including the company’s upcoming U.S pivotal study.

    Manufacturing Hickups

    Technical issues with a single source supplier resulted in delays in manufacturing, but the company continues to develop and expand its entire production process in order to meet its target manufacturing capacity. Consequently, the company forecasts delays in its clinical trials, at the forefront of which is the U.S. pivotal trial which has an updated commencement date in the first quarter of 2022. The company is continuing to scale its manufacturing up to support the upcoming clinical trials once production returns to normal.

    Future Outlook for CHEK

    Armed with an influx of capital generated from its registered direct offering, CHEK is poised to initiate clinical trials that the company hopes to see through to commercialization. Investors are keen for the company to resume normal manufacturing and allocate resources efficiently, so as to ensure maximum possible growth and increases in shareholder value.