The company’s share has been rising since its positive trial results.
The board of MCS Medical Compression Systems (DBN) Ltd. (TASE:MDCL) has approved a private placement of shares and warrants to institutional investors and parties at interest. The offering will be made at NIS 3 per share, for a total of NIS 7.13 million. The company did not disclose the names of the buyers. A few months ago, the company announced a stock allocation to employees and advisers.
MCS is currently traded at NIS 3.98, giving a company value of NIS 41 million, 20.2% of its balance sheet total, or 27% fully diluted.
MCS’s share has been rising in the two weeks since it announced positive results in comparative trials of its ActiveCare DVT anti-blood clotting device for surgical procedures, which demonstrated that the device could serve as an alternative to the drug Lovenox. The company did not publish the results of the trials, only the conclusions. If the medical community accepts the company’s claim, this could greatly increase the company’s potential market and improve its competition position.
Published by Globes [online], Israel business news - www.globes.co.il - on October 18, 2007
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