Israeli drug development company Kitov Pharma (NASDAQ:KITOV), saw its stock surge again yesterday after announcing that it has closed its registered direct offering of 38,888,892 of the company’s ordinary shares, raising approximately $35 million.
The company said they want to use the proceeds from the offering to fund the development of its oncology drugs, acquire new assets and use it as general working capital.
Kitov’s shares had jumped 100% over the past few days which was helped by the president of Barstool Sports and leader of a new wave of retail traders, Dave Portnoy saying that he had bought the stock.
Then a report came out this week via “Seeking Alpha” that the rise in its share price was due to Kitov planning to collaborate with Bristol Myers Squibb for a cancer treatment drug. Although it must be said that the rumour hasn’t been confirmed.
Regardless of why the move happened, it seems that the company has taken advantage of the clamour for its stock and chosen to sell more shares to healthcare-focused institutional investors.
It seems to have paid off as yesterday the company’s share price rose another 46%, closing out the day at $1.26 having reached as high as $1.40 earlier in the day.
There is a crucial level around the $1 area which will need to be watched for any potential pullbacks.