Can-Fite BioPharma announces $3M registered direct offering

RAMAT GAN, Israel - Can-Fite BioPharma Ltd. (NYSE American: CANF) (TASE: CANF), an Israeli biotechnology company focusing on developing small-molecule drugs for cancer and inflammatory diseases, has announced a registered direct offering of its American Depositary Shares (ADSs). The company has entered into agreements for the sale of 2.5 million ADSs at a price of $1.20 each, aiming to raise $3 million before fees and expenses. According to InvestingPro data, while the company maintains more cash than debt on its balance sheet, it has been rapidly burning through its cash reserves, with a negative free cash flow of $7.43 million in the last twelve months.

The offering, facilitated by H.C. Wainwright & Co. as the exclusive placement agent, is expected to close on Tuesday, subject to customary closing conditions. The proceeds are intended for research and development, clinical trials, working capital, and general corporate purposes.

This move follows the company’s effective shelf registration statement on Form F-3 filed on September 1, 2023, and declared effective by the U.S. Securities and Exchange Commission on September 12, 2023. The sale of ADSs will be made through a prospectus and an accompanying prospectus supplement, which will be filed with the SEC.

Can-Fite’s lead drug candidate, Piclidenoson, has shown positive topline results in a Phase III trial for psoriasis and has begun a pivotal Phase III trial. Another key drug, Namodenoson, is in various stages of clinical trials for hepatocellular carcinoma, NASH, and pancreatic cancer, and has received Orphan Drug and Fast Track Designations by the FDA. The company’s third drug candidate, CF602, has demonstrated efficacy in treating erectile dysfunction. With revenue of $0.67 million in the last twelve months and analyst forecasts predicting a sales decline, investors can access comprehensive financial analysis and additional insights through InvestingPro.

The information disclosed in this article is based on a press release statement from Can-Fite BioPharma Ltd.

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