Intec Announces Secondary Offering of Shares To Fund Clinical Trials

August 16, 2017

Susie Peterson

Yesterday, Intec Pharma Ltd. (NASDAQ:NTEC) (TASE:NTEC), the clinical-stage biopharmaceutical company developing "AP-CBD/THC", an Accordion Pill containing CBD and THC for various indications including low back neuropathic pain and fibromyalgia, filed to announce the launch of a secondary offering of shares.

Offering Details

This offering will be an underwritten public offering of ordinary NTEC shares, with Oppenheimer & Co. Inc. acting as the sole book-running manager. In connection with this offering, Intec Pharma will also grant the underwriters a 30-day over-allotment option to purchase up to an additional 15% of the number of ordinary shares being offered.

According to the prospectus in the Form F-3 that Intec filed with the SEC back in June, Intec "may offer and sell from time to time in one or more series or issuances, and on terms that we will determine at the time of the offering, ordinary shares, warrants, subscription rights, debt securities and/or units consisting of two or more of these classes or series of securities up to an aggregate amount of $100,000,000."

Intec won't actually be raising $100,000,000 though. This morning, StreetInsider reported that Intec would be selling approximately $10.6 million shares at an offering price of $4.70 per share. At the time of writing this, shares of NTEC are trading at $5.40 per share. "The gross proceeds of the offering are expected to be approximately $50.0 million, before deducting underwriting discounts and commissions and other estimated offering expenses."

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Disclaimer

Before buying any ordinary shares of Intec Pharma in the offering, you should carefully read the preliminary prospectus supplement and the accompanying prospectus, together with the information incorporated by reference therein. These documents contain important information that you should consider when making your investment decision. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to these ordinary shares may be obtained from Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, New York, 10004, or by telephone, at 212-667-8563, or e-mail at EquityProspectus@opco.com.

This article does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.