InsuLine jumps on Chinese deal

Eyal Levin Photo: PR
Eyal Levin Photo: PR

The potential investor will invest $4 million in the company for an allocation of 40% of InsuLine's share capital.

InsuLine Medical Ltd. (TASE: INSL) was the focus of attention today, after announcing that it had signed a non-binding memorandum of understanding with a foreign company registered in Hong Kong for an investment in Insuline and the founding of a joint venture in China. In late afternoon trading on the TASE the share price was up 19%.

According to InsuLine's announcement, if a binding agreement is formulated and signed, the potential investor will invest $4 million in the company for an allocation of 40% of InsuLine's share capital.

InsuLine also stated that it and a subsidiary of the investor would establish a joint venture in China in which InsuLine would own a 25% stake and the investor 75%. The foreign subsidiary will invest $1.5-2 million. InsuLine will grant the venture an exclusive license in China for the use, production, distribution, and sale of technologies involving insulin during meals used in InsuLine's InsuPad product. It was also reported that the memorandum of understanding would be valid for three months.

Published by Globes [online], Israel business news - www.globes-online.com - on October 26, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Eyal Levin Photo: PR
Eyal Levin Photo: PR
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