InSightec expands financing to $31.4m

Investors in the MRI ultrasound developer have added $3.9 million to the $27.5 million being invested by GE Healthcare.

Elbit Medical Technologies Ltd.(TASE: EMTC) announced today that the round of financing in its subsidiary InSightec Image Guided Treatment Ltd. led by GE Healthcare has been expanded. GE Healthcare is investing $27.5 million in the current round, and other shareholders will now invest $3.9 million bringing the total investment to $31.4 million.

Following the announcement, Elbit Medical Technologies share price rose 6.3% on the TASE, giving the company a market cap of NIS 94 million.

The current investors joining GE Healthcare probably include Meditech Advisors, consultants who formerly worked for GE Healthcare, and Meditech. The investment is being made at a company value of NIS 102.5 million after money. After the investment, Elbit Medical Technologies will hold 48% of the company

GE Healthcare has now invested $40 million in the company since the start of the year in two rounds and will hold 35% of the company and the belief is that it is on the way to taking control of the ultrasound developer.

Insightec develops MRI-guided focused ultrasound devices for the treatment of uterine fibroids, tumors, and neurological disorders, such as essential tremor‚ neuropathic pain and Parkinson’s disease.

Published by Globes [online], Israel business news - www.globes-online.com - on July 9, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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