D Medical Industries Ltd. (Nasdaq: DMED); TASE:DMDC) has signed a $20 million standby equity purchase agreement (SEDA) with Yorkville Advisors LLC unit YA Global Investments LP. D Medical is a holding company whose subsidiaries are developing a range of treatments and drug delivery systems for diabetes.
D Medical can sell up to $10 million of its shares to Yorkville over 12 months, and a further $10 million of its shares over the subsequent 12 months. Yorkville is obligated to buy up to $500,000 worth of shares in a 10-day period at a 3% discount to the lowest market price during this period, subject to TASE limitations with respect to a minimum price.
In March, D Medical announced that US United Plastics Group Inc. subsidiary UPG (Suzhou) EPZ Co. Ltd. began commercial production of D Medical's Spring Universal Infusion sets in Souzhou, China, based on an agreement signed in August 2010.
D Medical is a holding company that owns 94.2% of Spring Ltd. (formerly Nilimedix), which has developed an insulin pump; 92% of G Sense Ltd., which is developing a continuous glucose monitor; 90.1% of Medx-Set Ltd., which is developing components for insulin pumps; and a stake in Sindolor Medical Ltd. through a 58.2% holding in NextGen Biomed Ltd., which is developing a painless needle.
D Medical CEO Efri Argaman said, “As we move forward with the process of transferring the manufacturing of all of our “Spring” branded products to China and prepare to introduce and promote them in various target markets - including the US, Canada, Europe, Mexico and the BRIC countries of Brazil, Russia, India and China - the SEDA will provide D Medical with the flexibility to draw capital in an amount and at the time of our choosing. This will place the company in a more comfortable position for pursuing our commercial development plans and provide a safety net to mitigate any uncertainties that may occur on our way to reaching our goals."
"We are excited to be investing in D. Medical, an exciting innovator in the insulin-delivery device market and leader in the Israeli medical device sector," said Yorkville managing director Dr. Michael J. Nowak, and head of the Healthcare Group.
Yorkville has several SEPAs with Israeli companies, including specialty foundry Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM), real estate developer Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT), packet transport network solutions developer Orckit Communications Ltd. (Nasdaq: ORCT; TASE: ORCT) Roni Elroi's holding company KMN Capital Ltd. (TASE:KMNK-L)
D Medical's share price rose 5.2% on Nasdaq on Friday to $3.52, giving a market cap of $27 million, and rose 1.6% in morning trading on the TASE today to NIS 12.16.
Published by Globes [online], Israel business news - www.globes-online.com - on April 17, 2011
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