Medigus Ltd. (TASE:MDGS) will convene a general shareholders meeting on September 3 to vote on an equity investment in the company by its controlling shareholder Dexxon Technologies (2005) Ltd.
Medigus has developed a disposable endoscope for the treatment of gastro-esophageal reflux disease (GERD).
Dexxon is offering a NIS 7.8 million equity line at NIS 2.25 per share, compared with yesterday's closing price of NIS 1.60. The investment will not be in a single installment, but will be available to Medigus through the end of 2010, during which time the company can draw on the money as needed, in tranches of up to 10% of the total equity line.
For each share that Dexxon buys, it will receive a warrant to buy an additional share at the same price. The equity stake amounts to 5.7% of Medigus's share capital and the options amount to an additional 5.4%.
In late 2008, Dexxon offered to investment NIS 7.5 million in Medigus at NIS 1.50 per share. Medigus's audit committee rejected the offer, even though it was made at a substantial premium on the share price at the time of NIS 1.07.
Published by Globes [online], Israel business news - www.globes-online.com - on July 30, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009