Bio-Light Israeli Life Sciences Investments Ltd. (TASE:BOLT) incubator company OBEcure Ltd., which is developing a weight control treatment, announced today that it planned to raise $7-10 million at a company value of $70-100 million, before money.
OBEcure has reached an agreement with Stanford Financial Group to lead the private placement, and gave it the right to be an underwriter in a future public offering in the US, if the company goes public on Nasdaq or another US stock exchange.
A few months ago, OBEcure raised $20 million in a private placement. The company has subsequently marked several significant developments, which have boosted its value.
Bio-Light, which owns 90% of OBEcure, has a market cap of $30 million. This means that OBEcure’s company value for the placement will be 230% of the market cap of its parent company. In addition to OBEcure, Bio-Light has three other incubator companies.
OBEcure has filed an Investigational New Drug (IND) application with the US Food and Drug Administration (FDA) to begin Phase II clinical trials in the US for its OBE101 obesity treatment. OBEcure also recently began clinical trials in Canada, the results of which should help future clinical trials in the US.
OBEcure CEO Dr. Yaffa Beck said today, “The private placement we’re planning will enable OBEcure to simultaneously move forward clinical trials in the US and Canada, and expand products under development. The medical world is worried about obesity more than ever before, and OBEcure intends to become a leading player in this market with its portfolio of drugs under development.”
Published by Globes [online], Israel business news - www.globes.co.il - on August 6, 2006
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