Can-Fite BioPharma to raise NIS 45m on TASE
Monday, September 26, 2005
 
Can-Fite BioPharma, an Israeli science-based biopharmaceutical company that is developing novel treatments for autoimmune diseases and cancer, announced today its intention to raise the sum of NIS 45 million at a company pre-IPO value of $25 million, through an initial public offering on the TASE. The IPO is scheduled to take place this Thursday
The main underwriters are IBI Poalim, Apex Mutavim, and DAM Risk Management Ltd.

The offering will consist of 133,334 units at NIS 337.5 each. Each such unit will be composed of 300 common shares at NIS 1.125 per share and 100 options which have an index-linked exercise price of NIS 1.35 per share, with a September 30th, 2007 expiry date.

The company signed an agreement with Michael Weiss and Alex Rabinowitz granting them options that are conditional to Can-Fite’s share performance. In return, Weiss and Rabinowitz committed to assist the company in raising investment interest for Can-Fite’s shares among potential investors.

Weiss is an US citizen and resident who is actively involved in managing biotechnology companies. Weiss serves as the current chairman and CEO of Keryx Biopharmaceuticals Inc. (Nasdaq: KERX;) and is also chairman of XTL Biopharmaceuticals Ltd. (LSE: XTL; TASE: XTL).

Rabinowitz is co-owner of the Apex-Mutavim Group.

Can-Fite CEO Prof. Pnina Fishman stated that the agreement with Weiss, who has vast experience in the US capital market and in the biotechnology arena, will have a significant impact on the company’s future business activities and the clinical development strategy of the company’s products.

Fishman added that the capital that will be raised in the IPO will advance the company one step forward in its drug development which targets a potential very large therapeutic market.

Past investors, including Giza Venture Capital, Yozma Group, Ascend Technology Ventures and Vitalife, committed to purchase 20% out of the units offered to the public.

Can-Fite’s leading drug, CF101, for the treatment of rheumatoid arthritis, is an oral small molecule drug with both anti-cancer and autoimmune inflammatory activities, low manufacturing costs and a preferential safety profile. The drug’s main advantage is in its ability to specifically affect pathological cells without affecting healthy ones. Additionally, the fact that the drug is administered orally in the form of a capsule, is a big advantage compared with current treatments which are administered by intravenous infusion or injection at much higher associated costs.

Can-Fite recently announced promising results arising from an interim analysis of its early phase II study (Phase IIa) that looked at the safety and preliminary efficacy of CF101 in patients with active rheumatoid arthritis. After 12 weeks of treatment, patients showed reduced disease activity, including a decrease in the number of tender and swollen joints, without drug related serious side effects.

Headquartered in Petach-Tikva, Can-Fite BioPharma began operations at the end of 2000. The company was founded on the basis on scientific research by Prof. Fishman, formerly a tumor immunologist in the Rabin Medical Center, together with Dr. Ilan Cohn, a patent attorney and senior partner at Reinhold Cohn and Partners.

The company has its research laboratory in Israel, with offices in both Israel and the US. The company collaborates with research institutes overseas, including the NIH and Lynden University in Holland. Prior investors include Giza, Yozma, Ascend, and Vitalife, along with Biocom, BioMedical Innovations Management and BPW Israel Investment LLC.

 
 

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