Success for Check-Cap: Successfully Raised About NIS 35 Million Through Private Placement - More Than was Planned

CHICAGO, March 23, 2011 /PRNewswire/ -- Success for the Israeli medical device company Check-Cap: the Company, which is developing an innovative imaging capsule, the first of its kind in the world, that uses X-rays for early detection of pre-cancerous polyps and colon cancer, has completed a private capital raising amounting to some NIS 35 million. The amount raised is considerably more than the original amount that the Company intended to raise from private investors, and similar in scope to the public capital raising for which Check-Cap prepared at the end of 2010 on the Tel Aviv Stock Exchange. The Company benefited from strong demand, including from the Company shareholders and from a large group of new investors.

The current capital raising by Check-Cap will significantly assist the Company in carrying out a clinical trial of the imaging capsule on about 50 people. This trial is expected to begin later this year and to continue for about 6 months. After that, and based on the results of the clinical study, Check-Cap intends to submit an application for CE approval in Europe. The Company estimates that, based on the success of the clinical trial, the money raised will be sufficient to take the Company through the application for approval of sales in Europe during the second half of 2012.

According to Guy Neev, CEO of Check-Cap, "We're proud to have completed this capital raising with over-demand, proud of the faith the investors have expressed in the Company and the enormous response to the offer. The success of the capital raising such a short time after the Company decided to withdraw the application for an issue on the Tel Aviv Stock Exchange is further evidence of the great faith investors have in the Company's technology."

Check-Cap is developing a capsule that utilizes a unique breakthrough technology, designed to enable early detection and diagnosis of precancerous tumors and colon cancer, without the need for bowel cleansing preparation, using a procedure that is simple and convenient for the patient. At present, most people over the age of 50 do not get any type of screening for early detection of colon cancer, in large part due to the discomfort involved in the bowel cleansing preparation, as well as the invasiveness, pain and embarrassment involved in most types of existing procedures.

The Check-Cap Imaging System enables early identification of precancerous tumors in the intestine by means of an imaging capsule that scans the intestine using X-rays and collects data that is converted by the system software into a three dimensional reconstructed image of the large intestine. The capsule is carried through the digestive system by its natural motility, and displays data that enable imaging of the colon and detection of clinically significant polyps with a high degree of sensitivity.

So far Check-Cap has managed to image parts of the intestine and detect polyps of various sizes in animals, without prior bowel cleansing. The Company also conducted a clinical trial in Germany in 2010 using a passive version of the capsule, and submitted an application to conduct a clinical trial on humans in Europe using the imaging capsule. Following successful completion of the regulatory process in Europe, Check-Cap intends to submit a request to begin a clinical trial in the USA as well, in order to obtain FDA approval. Visit http://www.check-cap.com

    For further details:

    Eran Gabay, VP and Director of Business Communications
    Gelbart-Kahana Investor Relations and Public Relations
    +972-54-2467378
    [email protected]

SOURCE Check-Cap