The equity offering by MediVie Therapeutic, which came after a week in which the company's share price rose by 1,348%, attracted no orders.
Yesterday, the company offered restricted shares at NIS 1.3 per share, which compares with a market price of NIS 1.8 per share at the time of the offering. Despite the deep discount, investors did not respond to the offering of restricted shares, apparently because the company's share price is very volatile, and a market cap of NIS 95 million for a company that is at the start of sales and that has never carried out a controlled clinical trial will not necessarily be maintained over time. The company reported that investors expressed interest in non-restricted shares.
Medivie Therapeutic, which was merged into stock market shell Glycominds, has developed a device like a gum shield, called Laboraide, to be bitten on during childbirth and thereby reduce pain. In the first quarter of this year, the company had sales of NIS 339,000, and, according to its forecasts, hopes to reach sales of NIS 56 million by the end of the year.
The company says that it will consider an offering of non-restricted shares, or a private placement.
Published by Globes [online], Israel business news - www.globes-online.com - on June 30, 2014