$4 million of the sum will be invested in disposable insulin pump developer, NiliMedix.
D Medical Industries Ltd. (TASE:DMDC) will invest a further $5.5 million in its subsidiaries, $4 million of it in insulin pump developer NiliMedix Ltd., for a 6% stake in the company, at a value of $66 million. It will invest $500,000 in medical device company Sindolor Ltd. reflecting a company value of $2.4 million. Another subsidiary, G-Sense Ltd. will receive an owner's loan of $2 million, and a new subsidiary, which is a spin-off from NiliMedix, will receive a loan of $700,000.
The new company will develop disposable accessories for NiliMedix's insulin pumps. D Medical will own 90.1% of the new subsidiary, with Avraham Shekalim, a co-founder of NiliMedix and the principal inventor of its technology, owning the rest. D Medical will receive a 7% share of the royalties on the new company's sales.
D Medical's share closed down 1.1% on the Tel Aviv Stock Exchange (TASE), giving it a market cap of NIS 133 million.
Published by Globes [online], Israel business news - www.globes.co.il - on December 3, 2007
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