D Medical Industries Ltd. (Nasdaq: DMED); TASE:DMDC) has filed a shelf prospectus with the US Securities and Exchange Commission (SEC) to raise up to $25 million on Nasdaq. The company's subsidiaries have developed insulin pumps and related products for diabetics, and it is building a market network in the US and other countries, which require considerable cash outlays.
D Medical had NIS 14 million in cash at the end of June, after posting a loss of NIS 24.4 million on NIS 840,000 revenue in the first half of the year. Its share price on Nasdaq has fallen 72% since it was listed earlier this year.
Since trading in D Medical's shares on Nasdaq is minimal, one of the company's big challenges will be to get foreign investors to buy shares in the secondary offering, if and when it is held, thereby improving the shares' liquidity. Most of the investors in the company's first offering on Nasdaq were Israelis. The fact that the company already has products being marketed in the US should help.
D Medical's share price fell 4% on Nasdaq on Friday to $2.30, giving a market cap of $17 million and fell 4.1% by midday on the TASE today to NIS 8.43.
Published by Globes [online], Israel business news - www.globes-online.com - on September 4, 2011
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