Company: ENTXW
Filing Date: 2025-06-06
Form Type: 424B3
Source: 0001178913-25-002133
Chunk: 8

Company: Entera Bio Ltd.
Filing Date: 2025-06-06
Form: 424B3
Chunk 8
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 purposes of the income test, we may be a PFIC for any taxable year if 75% or more of our gross income (as determined for U.S. federal income tax purposes) for the relevant year is from interest and financial investments. Because the revenue shown on our financial statements is not calculated based on U.S. tax principles, and because for any taxable year we may not have sufficient (or any) non-passive revenue, there is a risk that we may be or become a PFIC under the income test for any taxable year. If we were a PFIC for any taxable year during which a U.S. investor owned our ordinary shares, such U.S. shareholder generally will be subject to certain adverse U.S. federal income tax consequences, including increased tax liability on gains from dispositions of the ordinary shares and certain distributions and a requirement to file annual reports with the Internal Revenue Service. U.S. investors should consult with their tax advisers regarding the application of the PFIC rules as they may relate to an investment in our company and should read the discussion below under “Material U.S. Federal Income Tax Considerations for U.S. Holders—Passive Foreign Investment Company Rules.” S-5 We have broad discretion to use the proceeds from this offering, and our investment of those proceeds may not yield a favorable return. Our management has broad discretion to use the proceeds from this offering in ways with which you may not agree. The failure of our management to apply these funds effectively could result in unfavorable returns. This could harm our business and could cause the market value of our ordinary shares to decline. See “Use of Proceeds.” You may experience immediate and substantial dilution. The offering price per share in this offering may exceed the net tangible book value per share of our ordinary shares prior to this offering. Assuming that an aggregate of 30,000,000 shares of our ordinary shares are sold pursuant to the Sales Agreement at a price of $1.835 per share, the closing price of our ordinary shares on Nasdaq on May 28, 2025, for aggregate gross proceeds of approximately $53.3 million, after deducting commissions and estimated aggregate offering expenses payable by us, you will experience immediate dilution of $0.875 per share, representing the difference between our as adjusted net tangible book value per share as of March 31, 2025 after giving effect to this offering and the assumed offering price. The exercise of outstanding stock options and warrants may result in further dilution of your investment. See the section