Intec Pharma Ltd. (NASDAQ: NTEC) fell Wednesday after the company announced a common stock offering.
The Jerusalem-headquartered Intec announced the pricing of an underwritten public offering of 6.75 million of its ordinary shares at $5.25 per ordinary share. The gross proceeds of the offering are expected to be approximately $35.4 million, before deducting underwriting discounts and commissions and other estimated offering expenses.
The offering is expected to close by this Friday, subject to customary closing conditions. Intec Pharma has granted the underwriters a 30-day option to purchase up to approximately one million additional ordinary shares to cover over-allotments.
If the over-allotment option is exercised in full, gross proceeds of the offering, before deducting underwriting discounts and commissions and other estimated offering expenses, are expected to be approximately $40.8 million.
Intec Pharma intends to use the net proceeds from the offering to fund its Phase III clinical trial for Accordion Pill Carbidopa/Levodopa, the company's leading product candidate for the indication of treatment of Parkinson's disease symptoms in advanced Parkinson's disease patients, to advance its pre-commercial activities and for working capital and other general corporate purposes.
Intec Pharma is a clinical-stage biopharmaceutical company focused on developing drugs based on its proprietary Accordion Pill platform technology.
The Company's Accordion Pill is an oral drug delivery system that is designed to improve the efficacy and safety of existing drugs and drugs in development by utilizing an efficient gastric retention and specific release mechanism.
Intec shares plummeted $1.23, or 19.1%, to $5.17
