D Medical Industries Ltd. (Nasdaq: DMED); TASE:DMED) has signed its fourth distribution agreement in the US for its insulin pump. Subsidiary Spring Health Solutions Inc. signed a non-exclusive agreement with Better Living Now Inc. for distribution of its Spring Universal Infusion Sets insulin pumps in the US.
The two-year agreement will be automatically renewed for one-year periods, unless one of the parties terminates the agreement with three months prior written notice to the other.
D Medical CEO Efri Argaman said, "As patient interest in ground-breaking new products for diabetes management, like the Spring Universal Infusion Set, continues to grow, expanding our distribution network is key to gaining greater market access."
In a separate development, D Medical yesterday raised a gross NIS 5.4 million in an offering of shares and options on the TASE. The company held the offering even though it is dual-listed on Nasdaq and has Standby Equity Distribution Agreement (SEPA) with Yorkville Advisors LLC. D Medical offered 1,495,000 shares at a par value of NIS 0.32 per share.
The company will use the proceeds for its distribution network.
In August 2010, D Medical raised $12 million in its offering on the TASE, at $7 per share; the share price has since fallen 85%. The capital raised has sufficed the company until now. In December 2011, the company drew $500,000 on its credit line from Yorkville, and still has a balance of $19.5 million.
D Medical lost $32 million on $1.1 million in sales of its insulin kits in January-December 2011, and it had $9.7 million in cash at the end of September.
D Medical's share price rose 1.4% in early trading on the TASE today to NIS 3.83, after falling 3% on Nasdaq yesterday to $1.28, giving a market cap of $10 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 17, 2012
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