NeatStitch signs US distribution deal

The company’s parent, Xenia Venture Capital, has filed to issue its own convertible debt on the TASE.

Xenia Venture Capital Ltd. (TASE:XENA) portfolio company NeatStitch Ltd. has signed a distribution order with MedTech Inc., giving the company exclusive distribution rights in the US for the company’s flagship product, an automated suturing device.

NeatStitch has already obtained US Food and Drug Administration (FDA) approval for the device, which internally sutures tissues during minimally invasive laparoscopic surgical procedures, in which surgical devices are inserted into the body cavity through small cuts in the stomach wall. Even though the procedure involves only small cuts, these still have to by manually sutured by an experienced surgeon, and can take 10-12 minutes. NeatStitch’s device can shorten the procedure by several minutes, making its simpler and eliminates the needs for a skilled surgeon.

In a separate development, Xenia has filed a draft prospectus for an issue of convertible bonds on the Tel Aviv Stock Exchange (TASE). The prospectus was filed nine months after the company raised NIS 24 million in its IPO at a company value of NIS 68 million.

Xenia had originally planned to raise at least NIS 34 million, but scaled back its offering in the face of market demand. The share has subsequently risen 28% to give a market cap of NIS 92 million.

Published by Globes [online], Israel business news - www.globes.co.il - on July 18, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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