BioCanCell Announces Terms of $25M Funding Round

 BioCancell Therapeutics (TASE:BICL) (the "Company"), a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel therapies to treat cancer, announced today that it has executed a non-binding term sheet for a private equity investment in the Company of approximately $25 million. The investment will be priced at NIS 1.60 per share ($0.46 at current exchange rates), reflecting a Company valuation of approximately $51 million on a fully-diluted basis. The lead investor expects to provide at least $7 million of its own funds and has the right to allocate up to $8 million worth of equity to other investors acceptable to the Company. Existing investors expect to provide at least another $5 million, and additional new investors are expected to provide another $5 million. The term sheet stipulates that the investors will receive warrant coverage of 80% to purchase additional shares of the Company at 120% of the offering share price, as well as price protection and other protections. The private investment is subject, among other things, to execution of a definitive agreement between the parties, shareholder approval and TASE approval.

In addition, during the course of 2018, the Company is planning to complete a public offering on a U.S. stock exchange, although there can be no assurance that a U.S. public offering can be completed on terms that would be acceptable to the Company, or at all.

These fundraising plans are designed to fund the Company’s initiation of its clinical trials of BC-819 in early stage bladder cancer, and other operational needs.

The term sheet is non-binding. There can be no certainty regarding the timing or final terms of the proposed private or public financings or that any such investment in the Company will be consummated.

This press release is neither an offer to sell, nor a solicitation of an offer to buy, any securities, and shall not constitute an offer to buy or a sale of securities in any jurisdiction in which such offer, solicitation or sale is unlawful.

About BioCanCell

BioCanCell is a clinical-stage biopharmaceutical company focused on the discovery and development of novel therapies to treat cancer. The Company’s most advanced product candidate, BC-819, is in development as a treatment for early stage, non-muscle-invasive bladder cancer (NMIBC). Two registrational clinical trials of BC-819 are planned to be initiated: a single arm trial in patients whose disease is unresponsive to standard therapy, and a randomized trial, under a special protocol assessment (SPA) from the FDA, in patients who have failed a first course of treatment. For additional information please go to www.biocancell.com.    

Forward Looking Statements

This press release contains "forward-looking statements" that are subject to risks and uncertainties. These forward-looking statements include information about possible fundraising plans, their anticipated extent and timeframe, and other strategic and business plans and objectives. These forward-looking statements are based on information BioCanCell has when those statements are made or its management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to: the inability to obtain requisite regulatory and other approvals, unwillingness of third parties to invest in the Company’s shares, materialization of risk factors that are typical to the Company, developments in the Company’s business or in the capital markets in which the Company is active, the success of the approach to discover and develop prospective therapeutic products, which is new and may never lead to marketable products; a lack of history of commercial sales; a dependence on the success of BC-819, the development of which will require significant additional clinical testing before regulatory approval can be sought and commercial sales launched; a need to raise substantial additional funds to complete R&D activities; an ability to overcome scientific or technological difficulties that may be encountered and that may impede R&D activities; and an ability to obtain and maintain intellectual property protection for product candidates, including pursuant to licensed patents.