July 15--Alcobra Pharmaceuticals Ltd. (Nasdaq: ADHD), which is developing drugs for treating ADHD has filed a prospectus to raise up to $100 million. The price of the shares in the offering was not indicated. A shelf prospectus is not binding but it indicates that Alcobra has a huge appetite for raising money after already holding two offering in the past 14 months.
Alcobra's IPO on Nasdaq in May 2013 raised $25 million at a company value of $89 million. After the share price rose 200% in just six months, the company held a secondary offering to raise $33 million, lowering its company value by one third to $170 million.
Today Alcobra is worth $260 million and had $44 million in cash at the end of the first quarter. Alcobra came to Nasdaq 14 months ago without cash and almost no expenses and was a company relying on outsourcing. Since then the expenses have accumulated mainly due to clinical trials.
The filing of the prospectus comes as Alcobra announced that patient recruitment for a Phase III clinical trial of its lead product for ADHD treatment has been completed. Results are expected in September, earlier than expected.
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