Sources inform ''Globes'' that Meni Mor has returned to the negotiating table, after a hiatus of several months, and is about to complete his takeover of medical devices company InterCure Ltd. (TASE: INCR-L). He will take over the company by buying bonds, which it has not been able to repay, and by injecting capital in return for shares, bringing him to a position of control
Intercure has developed a non-invasive device for treating hypertension. The company has cash flow problems and has been trying to reach a settlement with the holders of its Series A bond. Jacob Shahar owns 14.2% of the company, Medica Ventures owns 14.8%, company co-founder and chief science officer Dr. Benjamin Gavish owns 13%, and chairman Daniel Plotkin owns 2.47%.
Mor is a party at interest in Biomedix Incubator Ltd. (TASE:BMDX), D Medical Industries Ltd. (TASE:DMDC), and Biocell Ltd. (TASE: BCEL), and he is a director of incubator Meytav Technological Enterprises Innovation Center Ltd.
A few weeks ago, Mor reportedly offered to buy Intercure's bonds, but no deal was reached due to opposition from the company's controlling shareholders. Now, Mor will reportedly pay the bondholders the bond's market price of NIS 0.30. The controlling shareholders will have to swallow the deal, which will dilute their stakes.
Mor earlier tried to take over Intercure through Biomedix and D Medical, together with institutional investors. It didn’t happen even though Intercure failed to redeem its bonds in January and the bondholders wanted to accept Mor's offer. The controlling shareholders blocked the deal, by preventing the buyers from conducting due diligence so long as they were not bondholders.
Intercure's share price rose 2.2% today to NIS 0.46, giving a market cap of NIS 11.3 million. The company held its IPO at a company value of NIS 240 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 22, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010