Home / Biotech/Pharma / Alcobra Ltd. Announces Closing of Public Offering of Ordinary Shares and Full Exercise of Over-Allotment Option

Alcobra Ltd. Announces Closing of Public Offering of Ordinary Shares and Full Exercise of Over-Allotment Option אלקוברה בע״מ מכריז על סגירת הנפקה של מניות רגילות

  • After its stock dropped over 80% last year with failed Phase III trial results, Alcobra has raised approximately $27.9 million in a public offering of ordinary shares.
  • The full over allotment option was exercised by the underwriters: 975,000 of the 7.5 million shares sold.
  • The company is developing a drug for ADHD and plans to use the proceeds to further its development and for general corporate expenses.

TEL AVIV, Israel, Jan. 14, 2015 (GLOBE NEWSWIRE) — Alcobra Ltd. (Nasdaq:ADHD) today reported that it has closed its previously announced public offering of ordinary shares. The Company sold 7,475,000 ordinary shares in the offering, including 975,000 shares that were issued upon the full exercise by the underwriters of their over-allotment option. The offering price was $4.00 per share, and the net proceeds to the Company from the sale of the shares were approximately $27.9 million. Investors in the offering included Venrock, Deerfield, Broadfin Capital, Great Point Partners and others.

Alcobra is developing MDX, a proprietary non-stimulant for the treatment of cognitive disorders including Attention Deficit Hyperactivity Disorder (ADHD) and Fragile X Syndrome. Alcobra plans to use the net proceeds from the offering to fund its future clinical development program and for general corporate purposes.

Piper Jaffray & Co. acted as the sole manager for the offering.

The shares were offered pursuant to a shelf registration statement on Form F-3 (File No. 333-197411) filed pursuant to the Securities Act of 1933, as amended, which was previously filed with, and declared effective by, the Securities and Exchange Commission (SEC). A prospectus supplement related to the filing has been filed with the SEC and is available on the SEC’s website at http://www.sec.gov.

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

About Alcobra Ltd.

Alcobra Ltd. is an emerging pharmaceutical company primarily focused on the development and commercialization of a proprietary drug candidate, MDX, to treat cognitive disorders including Attention Deficit Hyperactivity Disorder (ADHD) and Fragile X Syndrome. MDX has completed multiple Phase II studies and a Phase III study in adults with ADHD. The Company is conducting separate Phase IIb trials in pediatric ADHD and Fragile X Syndrome. For more information please visit the Company’s website, www.alcobra-pharma.com, the content of which is not incorporated herein by reference.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Because such statements deal with future events and are based on Alcobra’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Alcobra could differ materially from those described in or implied by the statements in this press release. For example, forward-looking statements include statements regarding the planned use of the net proceeds from the offering, or that MDX may successfully treat cognitive disorders including ADHD and Fragile X Syndrome. In addition, historic results of scientific research do not guarantee that the conclusions of future research would not suggest different conclusions or that historic results referred to in this press release would not be interpreted differently in light of additional research or otherwise. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including market conditions and the satisfaction of customary closing conditions related to the proposed offering, and other risk factors discussed in Alcobra’s prospectus supplement and in Alcobra’s Annual Report on Form 20-F for the fiscal year ended December 31, 2013 filed with the Securities and Exchange Commission (SEC) and in subsequent filings with the SEC. Except as otherwise required by law, Alcobra disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or circumstances or otherwise.

U.S. Investor Contacts
LifeSci Advisors, LLC
Michael Rice

Media Inquiries
Sam Brown, Inc.
Mike Beyer

Israel Investor Contact:
Alcobra Investor Relations
Debbie Kaye
+972-72 2204661



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