Sources inform ''Globes'' that, unless there is a last minute hitch, D Medical Industries Ltd. (TASE:DMDC) will hold an offering on Nasdaq in the next few days. The underwriters also intend to sell a quarter of shares offered in Israel through Analyst Underwriting and Issuing Ltd.
D Medical is a holding company for companies that are developing devices for the treatment of diabetes. The company plans to raise $30 million through the issue of 2.8 million shares at $10-12 per share, a 12-34% premium over the share price on the Tel Aviv Stock Exchange (TASE). The ticker will be "DMED".
Rodman and Renshaw and Think Equity are the underwriters. They will receive a 45-day green shoe option of 409,000 shares at the issue price.
D Medical owns 94.2% of Nilimedix Ltd., which has developed an insulin pump; 92% of G Sense Ltd., which is developing a continuous glucose monitor; 90.1% of Medx-Set Ltd., which is developing components for insulin pumps; and a stake in Sindolor Medical Ltd. through a 58.2% holding in NextGen Biomed Ltd., which is developing a painless needle.
According to its prospectus, D Medical will use $7.7 million of the proceeds to expand its sales and marketing network, $5.5 million to expand production, and $8.5 million to complete R&D and commercialize Nilimedix's Nilipatch disposable insulin patch. The company is targeting, via distribution agreements, Brazil, Russia, India, China, Mexico, and Europe.
D Medical's share price rose 0.4% today to NIS 34.60, giving a market cap of NIS 211 million. The Nasdaq offering is planned at a company value of $88-105 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 26, 2010
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