MCS shelf prospectus vague about strategic talks

The medical device company is planning a rights issue to raise up to NIS 4.5 million.

MCS Medical Compression Systems (DBN) Ltd. (TASE:MDCL) provides a hint about the company's future in a small clause in the shelf prospectus filed yesterday. Nevertheless, more is concealed than is disclosed.

MCS has developed a pneumatic device for preventing deep vein thrombosis. The company is planning a rights issue to raise up to NIS 4.5 million. The clause in the prospectus says that the company has been in informal talks both with leading companies in its field and with two investment banks about possible collaboration or other strategic agreements. The talks are with each of the parties separately.

MCS is keeping its cards close its chest. It did not disclose the names of the other parties, whether the objective was a strategic or financial investment in it, or possibly some form of collaboration.

MCS's share was unchanged today at NIS 3.11, giving a market cap of NIS 113 million.

Published by Globes [online], Israel business news - www.globes-online.com - on July 15, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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