Can-Fite BioPharma (CANF) agreed to the immediate exercise of warrants for up to about 1.6 million American depositary shares at $2.50 each, expected to generate about $4 million in gross proceeds, the company said Wednesday.

In connection with the transaction, Can-Fite will issue new warrants to purchase up to about 3.2 million ADSs at an exercise price of $2.50 per ADS.

The company plans to use the net proceeds for research and development, clinical trials, working capital and general corporate purposes.

The closing is expected around Thursday.

Shares of Can-Fite fell more than 15% in premarket activity Wednesday.

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