BSP - Biological Signal Processing Ltd. today raised NIS 24 million, at a company value of NIS 70 million, before the money, in its institutional tender. 67% of the issue was guaranteed by investment institutions. The underwriters were Poalim IBI Underwriting and Investments Ltd. (TASE:PIU), Altshuler Shacham Management Underwriters and Investments Ltd., and Menorah Underwriters & Management Ltd. The issue was fully secured by underwriters’ commitments.
16-month options were given at a strike price of NIS 10, compared with the share’s NIS 6.67 price on the issue date. Until now, BSP has been financed by private investors, who put $2.5 million in it, plus a NIS 2.7 million ($600,000) grant from the Office of the Chief Scientist.
40% of the proceeds from the issue will finance further R&D, and 60% will be used to build marketing channels for the company’s first product, and to complete clinical trials. BSP’s product is a device for sensitive measurements of blood flow and heart pulse, intended as an improved EKG monitor. One third of patients suffer from severe blood flow problems that are too small to be measured by EKG, but which can still be lethal. When EKG results are unclear, more expensive devices, such as electrocardiograms, radioactive imaging of the heart muscle, or more invasive methods, such as catheters, are normally used. BSP’s device is intended to eliminate these procedures.
In 2005, BSP obtained US Food and Drug Administration (FDA) and EU CE Mark marketing approval for its first product. The present device is an EKG for testing during exercise. The company is now developing an EKG device for testing during rest.
BSP has not yet begun marketing its product, and has not yet recorded any revenue. In its prospectus, the company said it was negotiating with a number of entities for cooperation in marketing and distributing the product, but no contracts have yet been signed.
Published by Globes [online], Israel business news - www.globes.co.il - on May 16, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006