Ultrasonic depilatory device maker Applisonix Ltd. (TASE:APLS) is in talks to sell subsidiary CureLight Ltd. and a pilot of its products to Hong Kong-based Navigator Ventures Group Ltd. In a notice to the TASE, Applisonix said that it signed a letter of intent with Navigator to conduct due diligence on CureLight, after which Navigator has the right to invest $2.3 million in CureLight for a 51% stake in the company.
CureLight has developed photodermatology products that use light-based treatments for acne and other common skin ailments. The products are certified by the US Food and Drug Administration (FDA) and other national regulators. In late 2008, Applisonix bought CureLight from Medtechnica Ltd. (TASE: MEDI) for $1.3 million, plus assumption of the company's $1.5 million debt. Applisonix also accepted CureLight's liabilities of up to $1.65 million to its receiver.
CureLight will use Navigator's investment - assuming it is made - to develop new models of its current products. If the new versions meet the parameters set out in the characterization document, Navigator will to buy the rest of CureLight for up to $3 million.
If Navigator and Applisonix do not reach agreement on the wording of the characterization document, Navigator has the right to acquire all of CureLight for $2 million.
Applisonix's share price fell 3.3% todayto NIS 0.68, giving a market cap of NIS 38 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 20, 2011
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