D Medical Industries Ltd. (TASE:DMDC), a holding company for a group of medical devices companies, is preparing to raise capital in the US. It will apparently try to raise several tens of millions of dollars, either on Nasdaq, the New York Stock Exchange, or the American Stock Exchange.
The company is currently planning a NIS 15 million private placement to Israeli private and institutional investors ahead of the planned US offering. The placement will be at NIS 0.95 per share, compared with yesterday's closing price of NIS 1.05. Each unit will comprise ten shares and three warrants.
D Medical's share fell 2.6% today to NIS 1.03, giving a market cap of NIS 154 million.
D Medical's portfolio companies include Nilimedix Ltd., which has developed and sells an insulin pump. The company is well-known in Europe. It has US Food and Drug Administration (FDA) marketing approval for the US for its reusable pump, but not for its disposable pump, which is considered the company's greater innovation.
In view of the intense competition in insulin pumps in the US, and since investors there are unfamiliar with Nilimedix, D Medical is seeking a strategic agreement with a US distributor before holding an offering.
If D Medical holds a Wall Street it offering, it will be the first young Israeli biomedical company floated since 2005 to dual list under the R&D Companies Flotation Law to be dual-listed in the US.
Published by Globes [online], Israel business news - www.globes-online.com - on October 28, 2009
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