Int'l co mulls buying Israeli medical device co ETView

medicine, healthcare

ETView develops a product for use in selective single-lung artificial respiration.

Will medical device company ET View Medical Ltd. (TASE: ETVW) produce the next Israeli exit in this sector? The company today announced, "A multinational medical equipment company recently expressed interest, and asked for information about the company for the purpose of assessing a possible acquisition of the company or its business. Confidentiality agreements were subsequently signed, and specific information was provided." ETView nonetheless stressed that the contacts were only at a preliminary stage, and no concrete offers had been received.

When it published its 2014 reports, ETView announced that it was considering business cooperation, and the company board of directors approved an agreement with an investment bank for the purpose of locating a potential buyer for the company. The information about the interest expressed in the company was reported to the Tel Aviv Stock Exchange (TASE) today, in view of ETView's planned rights issue "given the company's urgent need for an injection of capital," as reported by the company.

A going concern warning was attached to the company's reports, and it had less than NIS 1 million in cash at the end of the third quarter. It recently secured a NIS 1 million line of credit from Trendlines Group Ltd., its controlling shareholder. ETView is traded at a relatively modest NIS 31 million market cap, following a 33% decline in the company's share price in 2015. The company share zoomed 15.6% yesterday.

ETView develops a product for use in selective single-lung artificial respiration. The product, a bronchoscope, is actually a special pipe for inserting a camera that can be directed more precisely. It is used in pulmonary surgery requiring the isolation of one lung.

The potential buyer for the company could be a medical equipment company in the artificial respiration segment, such as Covidien (now part of Medtronic) or Hudson, which have substantial market shares in the segment. The main competitors in bronchoscope devices are Olympus and Pentax.

ETView's rights issue, scheduled in the coming days, is expected to raise NIS 5 million for the company. ETView signed an agreement with an investor who undertook to inject NIS 2 million at NIS 2 per share (around the current price), provided that the company raises at least NIS 3 million (also at NIS 2 a share) by March 2016.

Published by Globes [online], Israel business news - - on January 6, 2016

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

View comments in rows
Update by email about comments talkback
Your name
Please insert your name
Hyperlink in a new window Hyperlink Right Left underline italic bold Bulleted List Ordered List Face1 Face2 Face3 Face4 Face5 Face6
Your comment

You comment was recieved and soon will be published.
In posting comments, I agree to abide by the Terms of Use
Globes encourages lively and frank debate, but posts that the editors consider merely abusive or otherwise inappropriate will be removed. Report inappropriate content
Thank you for posting your comment, which will be reviewed for publication.
Loading Comments...load
Load more comments
medicine, healthcare
medicine, healthcare
Twitter Facebook Linkedin RSS Newsletters גלובס MAD Conference 2017