The shares of medical device company Medigus Ltd. (TASE:MDGS) went on a rollercoaster on Thursday. The share rose 6% during the session, then dropped 11% from its intra-day high in late trading to end the day down 2.5%.
In a rare weekend notice to the Tel Aviv Stock Exchange (TASE), Medigus said that two high-ranking officials in the firm had sold more than 90% of their holdings in the company. While the total amount of the sales was only about NIS 300,000, investors considered the sales as a vote of no confidence in the company, since it left the two insiders with nearly no stakes in the company.
Medigus director Mony Ben-Dor sold 70,000 shares - 96.7% of his holding - at NIS 2.25 per share, for NIS 157,500. The sale was made at 11% above Thursday's closing price of NIS 2.02. Following the sale, he owns 2,321 shares in the company.
Medigus CFO Oded Yitzhak sold 61,500 shares 93.4% of his holding - at NIS 2.20 per share, for NIS 135,000. Following the sale, he owns 4,243 shares in the company.
Medigus has developed an esophageal endoscope for the treatment of gastroesophageal reflux disease (GERD), as well as other products.
Medigus's share price fell 0.9% in early trading today to NIS 2.01, giving a market cap of NIS 135 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 28, 2010
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