MCS Medical Compression Systems (DBN) Ltd. (TASE:MDCL) has signed a letter of intent to sell its deep vein thrombosis treatments to a leading orthopedics company for $75 million in cash. The deal includes the company's ActiveCare, ActiveCare + SFT, and ActiveCare + DX product lines.
The agreement depends on due diligence by the buyer and other conditions.
MCS's share price rose 32.1% today to NIS 3.77, giving a market cap of NIS 155. The company has raised $22 million to date; the average return on investment from the deal is 140%. The main beneficiaries will be Mori Arkin and Uri Geiger's Accelmed, which invested in the company in 2008, when it had a market cap of NIS 20 million.
Investors who bought shares at NIS 2.25 per share at MCS's IPO in November 2009, and in a rights issue at NIS 0.50 per share in December 2008 will also benefit. Investors who participated in MCS's secondary offering at NIS 11.30 per share will lose out. Investors in that offering also received bonds at an 8%. MCS subsequently repaid the bonds in full and on time, diluting the shareholders' stakes.
MCS CTO Dr. Yaakov Barak founded the company in 1998.
Published by Globes [online], Israel business news - www.globes-online.com - on August 14, 2011
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