Sources inform ''Globes'' that yesterday's 5.5% rise in the share price of InterCure Ltd. (TASE: INCR-L), which developed a non-invasive device for the treatment of hypertension, was due to progress in talks on a debt settlement with the company's bondholders. The share fell 0.8% today to NIS 0.51, giving a market cap of NIS 12.7 million. The bond price rose 3.5% today to NIS 0.32.
In December 2009, InterCure asked its bondholders to postpone three interest payments, each amounting to NIS 1.4 million. The first payment was due on January 31, 2010. The debt on the Series A bond is NIS 41 million.
A few days ago, the Series A bondholders proposed to the company a settlement subject to approval of the Series B bondholders, who are also the company's largest shareholders. They include chairman Daniel Plotkin (who owns 2.47% of the company), co-founder and chief science officer Dr. Benjamin Gavish (13%), Jacob Shachar (14%), and Medica Ventures (14.8%).
Under the proposed settlement, the Series B shareholders will inject a still undecided amount into InterCure, which will turn them into the controlling shareholders in the company. The company says that the capital should enable it to reach operating profit.
InterCure's sales of its Respirate device plummeted last year, due to the economic crisis. The device is sold directly to consumers, which meant that it was vulnerable to the crisis.
Published by Globes [online], Israel business news - www.globes-online.com - on March 3, 2010
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