Compugen Ltd. plans to raise gross proceeds to about $21 million through a registered direct offering of shares and warrants.

The Israel-based company will issue about 5.3 million ordinary shares at $3.95 apiece to certain institutional investors.

Compugen also plans to issue warrants to buy up to 4.3 million additional ordinary shares.

The warrants may be exercised at $4.74 per share and will be exercisable six months following issuance and have a term of five years from date of issue.

The offering is expected to close on or about June 19.

Net proceeds will be used to fund preclinical and clinical development of the company's product candidates and for other general corporate purposes.

JMP Securities LLC is acting as exclusive placement agent for the offering.

Compugen uses its predictive discovery infrastructure to identify drug targets and develop therapeutics in the field of cancer immunotherapy.