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RAMAT GAN, Israel - Can-Fite BioPharma Ltd. (NYSE American:CANF) (TASE:CANF), a clinical-stage biotech with a current market capitalization of $13.08 million, announced Monday the pricing of a public offering that will generate $5 million in upfront proceeds, with potential for an additional $10 million if accompanying warrants are fully exercised. According to InvestingPro data, the company has been quickly burning through cash while maintaining a strong liquidity position with more cash than debt on its balance sheet.
The clinical-stage biotechnology company has agreed to sell 8,333,333 American Depositary Shares (ADSs) or pre-funded warrants to a single institutional investor at $0.60 per unit. The offering includes short-term warrants to purchase up to 16,666,666 additional ADSs at the same price.
The transaction, expected to close around Tuesday, July 29, is being managed by H.C. Wainwright & Co. as the exclusive placement agent.
Can-Fite indicated it plans to use the proceeds to fund research and development activities, clinical trials, and general corporate purposes. With a current ratio of 4.38, the company maintains strong short-term liquidity as it advances several drug candidates, including Piclidenoson for psoriasis and Namodenoson for liver diseases and cancer. InvestingPro analysis reveals the company generated revenue of $0.67 million in the last twelve months, with an EBITDA of -$8.12 million, highlighting the capital-intensive nature of clinical-stage biotech development.
The short-term warrants will be exercisable immediately upon issuance and will expire 24 months after the issuance date. While the full exercise of these warrants could bring in an additional $10 million, the company noted there is no guarantee they will be exercised.
The securities are being offered through a registration statement on Form F-1 that was declared effective by the U.S. Securities and Exchange Commission on July 28, according to the company’s press release statement.
Can-Fite develops small molecule drugs targeting cancer and inflammatory diseases, with its lead candidates in late-stage clinical trials for conditions including psoriasis, liver cancer, and metabolic dysfunction-associated steatohepatitis (MASH). Get deeper insights into Can-Fite’s financial health, growth prospects, and additional key metrics with InvestingPro, which offers exclusive analysis and 7 more ProTips for informed investment decisions.
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