Israeli drugmaker Compugen Ltd said it raised net proceeds of about $19 million through a share sale at an average price of $4.91 a share, sending its shares up 5 percent in pre-market trade.
The company said this followed a shelf filing in October under which about 4.1 million shares were sold during the Nov.13-to-Dec. 29 period.
Compugen plans to use the proceeds for general corporate purposes.
Including the net proceeds from this offering, we expect to have cash resources at year-end 2009 of about $23 million, Chief Financial Officer Dikla Czaczkes Axselbrad said in a statement.
The company also said it expects to achieve cash flow breakeven by year-end 2011 and sees maximum gross cash usage of $8.5 million for 2010.
Shares of the company were up 5 percent at $4.85 in pre-market trade. They closed at $4.62 Tuesday on Nasdaq. (Reporting by Krishnakali Sengupta in Bangalore; Editing by Unnikrishnan Nair)