Xenia Venture Capital Ltd. (TASE:XENA), an investment company that operates a technology incubator, has announced the completion of a financing round by its portfolio company, Medi-Tate, in which it has an 18% stake, fully diluted. Medi-Tate, an Israeli medical devices company that develops products for treating benign prostate tumors, has raised $4 million from a strategic investor at a company value of $50 million, after money.
The investor undertook to invest $4 more within six months, and was also granted an option to acquire the entire company at a value of $100-200 million, depending on what stage Medi-Tate is in when acquired. The company value for the acquisition will be $100 million if the acquisition takes place within a year, $150 million if it takes place within three months of the date on which the company's leading product is approved by the US Food and Drug Administration (FDA), and $200 million afterwards. The agreement gives Medi-Tate the right to receive another $2 million investment from another investor, should it wish to do so.
Portfolio of 30 companies
The Xenia share price rose 1.5% around noon, increasing the company's market cap to NIS 36 million. According to the deal, the current value of Xenia's holding in Medi-Tate is NIS 34.2 million. Medi-Tate's product makes it possible to reduce the size of benign prostate tumors using minimally invasive surgery without bleeding and under minimal anesthesia in a hospital out-patients clinic.
The Xenia incubator is a holding company founded as a partnership between a number of private investors. It began as a franchise holder for a technology incubator in Kiryat Gat. Two years ago, the company competed in a tender for new technology incubators and together with the Van Leer Institute, won a franchise for an incubator in Jerusalem (instead of its incubator in Kiryat Gat). The leading shareholder in Xenia with a 24.8% share is Centaurus Investments, an investment group in the Virgin Islands belonging to UK Jewish billionaire Vincent Tchebguiz. Other shareholders include Menorah Mivtachim Holdings Ltd. (TASE: MORA) (8.8%), Novacom Technologies (8%), Yelin Lapidot Holdings Management (7.19%), and Tal Menipaz (7%).
Xenia has holdings in 30 companies, including BioProtect, OrthoSpace, PolyPid, Arcos, and Playcast. Xenia CEO Avishay Noam said today, "I'm glad about the impressive financing round by another portfolio company, which will enable Medi-Tate to realize its strategic plan, make progress in regulatory matters, and aim at cooperative efforts with international medical devices players."
Published by Globes [online], Israel business news - www.globes-online.com - on June 29, 2016
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