Israel Healthcare Ventures Ltd. has cancelled its investment in BioView Ltd. (TASE:BIOV) and the planned merger with IHCV's portfolio company Mona Liza Medical Ltd. IHCV was due to invest in BioView at a company value of $12.3 million; the company's present market cap is $7.6 million.
When IHCV and BioView announced their agreement in September, IHCV demanded that BioView provide information about ongoing negotiations with a third party that wanted to acquire the company. BioView refused to comply, claiming that until a deal was closed, there was no reason to notify the Tel Aviv Stock Exchange (TASE) or IHCV. Mona Liza will pay BioView NIS 350,000 because IHCV was the party to cancel the agreement.
BioView makes automated cell diagnostic system for use in cytology, cytogenetics, hematology and pathology laboratories. Mona Liza is developing a non-invasive genetic test platform enabling prenatal genetic screening in transcervical cell samples taken in the first trimester of pregnancy, thereby enabling early detection of chromosomal abnormalities and gender.
BioView nevertheless rose 4.6% on the TASE today.
Published by Globes [online], Israel business news - www.globes-online.com - on December 18, 2007
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