The management of medical device holding company D Medical Industries Ltd. (TASE:DMDC) are not deterred by the falls on the Tel Aviv Stock Exchange (TASE) and on Wall Street over the past few weeks. The company today announced that it has filed a draft prospectus with the US Securities and Exchange Commission (SEC) for a public offering and requested a listing on Nasdaq.
D Medical plans to raise $20-25 million. The company's opening market cap today was NIS 157 million, about $42 million. If the offering is successful, it will greatly dilute the holdings of its current shareholders.
Its ticker on Nasdaq will be "DMED".
The company said that underwriters Rodman & Renshaw and ThinkEquity will lead the offering.
In the prospectus, D Medical said that its strategy in the coming years will be to first penetrate Brazil, Russia, India, and China (the BRIC countries), as well as Mexico, and Europe, where it can exploit the relative advantage in low production costs of the products of its subsidiaires. The company plans to sign distribution agreements in these countries.
D Medical added that it intends to rebrand the insulin pump developed by subsidiary Nilimedix Ltd. under the "Spring" label. The new name emphasizes the core technology of its insulin pump which uses a spring-based delivery system instead of the conventional motor-driven delivery system of current products.
D Medical's share price rose 12.6% in morning trading today to NIS 29.
Published by Globes [online], Israel business news - www.globes-online.com - on May 26, 2010
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