InterCure raises NIS 67.4 million in IPO

The firm's device, which guides breathing to lower blood pressure, has FDA approval.

31 July 07 11:44, Gali Weinreb

Medical device start-up InterCure Ltd. has raised in NIS 67.4 million in its IPO at a company value of NIS 215 million ($50 million) before money. The date for the flotation was determined by the institutional tender held a few weeks ago, in which orders received accounted for 80% of the total share capital for the flotation.

Since the IPO was guaranteed by underwriter allotments, InterCure was not under any sort of pressure, although ultimately, the company's underwriters did not need to exercise their obligations and the flotation was held at the lower end of the price range. Poalim I.B.I.- Underwriting and Issuing Ltd. was the lead underwriter for the IPO with Rosario Capital Ltd. and Africa-Israel Issuing Ltd. as secondary underwriters. Around NIS 10 million of the IPO proceeds will be earmarked for the repayment of credit the company received from Mizrahi Tefahot Bank (TASE:MZTF).

InterCure's principal shareholders following the IPO are co-founder and chief science officer Dr. Benjamin Gavish who invented the company's lead device (13.2%); his son, CEO Erez Gavish (8.6%); Yaacov Shachar (14.4%); Medica Venture Partners (13.5%), and Palladin Capital (13.4%). Company chairman Daniel Plotkin is also a key party-at-interest in the company.

InterCure's flagship device, "RESPeRATE" has received US Food and Drug Administration (FDA) approval for use as a non-invasive device for regulating blood pressure. The device uses a personalized musical melody composed of two distinct inhale and exhale guiding tones, designed to help users regulate their breathing patterns in order to lower their blood pressure. One 15 minute session a day, several times a week, has been found to significantly reduce blood pressure, and it represents an alternative to biofeedback devices and meditative and yoga methods, as well as blood pressure medication.

The company has been marketing RESPeRATE since 2002, and most of its sales are in the US. It recorded NIS 9.9 million sales in the first quarter of 2007, but still posted a NIS 3.6 million loss, primarily due to marketing expenses.

Published by Globes [online], Israel business news - www.globes.co.il - on July 31, 2007

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