aMoon Partners, controlled and managed by by Check Point Software Technologies Ltd. (Nasdaq: CHKP) cofounder Marius Nacht, together with Dr. Yair Schindel, is likely to invest $20 million more in pharma company Regenera, in which InterCure Ltd. (TASE: INCR-L) owns a 23.48% stake. According to the proposal, aMoon will invest $10 million now and $10 million more as needed.
Regenera plans to raise money on an overseas stock exchange, through either an IPO or a merger with a stock exchange shell or a company with activity. The second $10 million of the investment will be invested only if an overseas financing round is successful. InterCure's share price rose 30% following the announcement, pushing the company's market cap up to NIS 28 million. InterCure also owns a stake in NovellusDX, another drug developer.
aMoon's investment in Regenera will be at a company value of $28 million, before money, with an option for buying additional shares at a 20% premium on this price (both stages in the investment will be on the same terms). The investment is contingent on approval from Regenera's board of directors.
After the first stage of the investment is completed, InterCure's holding in Regenera will be diluted to 17%, unless it exercises its right under the agreement to invest more itself on the same terms.
Drug for treatment of degenerative nerve diseases
Regenera is developing a drug for treatment of degenerative nerve diseases. Its first product is designed to treat a rare disease called nonarteritic anterior ischemic optic neuropathy (NAION), in which eye nerves die, causing blindness in the patient. Nacht is now chairperson of Regenera, in addition to being the largest shareholder in the company. Regenera is preparing for Phase III trials, after its Phase II trials showed a substantial improvement in the patients' eyesight.
According to the company, even if Regenera's offering does not succeed, Nacht's investment is likely to be enough for completing Phase III trials, which are expected to be short because the disease is rare. The US market is not very hospitable to new offerings by medical companies right now, so the scenario of a merger into an existing company is more likely.
Published by Globes [online], Israel Business News - www.globes-online.com - on January 2, 2018
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