Check-Cap, which is developing an ingestible imaging capsule to detect colorectal cancer, raised $12 million by offering 2 million units at $6, the low end of the range of $6 to $8.
The company commands a fully diluted market value of $61 million, less than half of its originally proposed diluted market value of $131 million. The company added warrants to the IPO in January and added long term incentive rights when it revised terms earlier this month. Each unit consists of 1 share, 0.5 warrants (at 125% offer price) and 1.5 long term incentive rights (at 115% offer price, vest between 1 and 2 years from IPO).
One year ago, Covidien (NYSE: COV) acquired a close peer of Check-Cap, Given Imaging, for $860 million.
Check-Cap plans to list on the NASDAQ under the symbol CHEK. Chardan Capital Markets and Maxim Group LLC acted as lead managers on the deal.
