Exalenz Bioscience Ltd. (TASE:EXEN), which has developed the BreathID diagnostic test for gastrointestinal diseases, has signed a letter of intent with a foreign private equity fund to invest NIS 25 million at NIS 0.35 per share, or at 85% of the share price on the day the deal is closed, whichever is lower.
The investment is subject to due diligence, and a commitment by Exalenz's current shareholders to invest an additional NIS 12.5 million in the company. Mori Arkin, who owns 41% of the company, has already promised a NIS 10 million interest free loan.
The investment by the foreign fund will be in two installments, initially of NIS 15 million, and the balance at the fund's discretion.
A few months ago, Exalenze cancelled a NIS 25 million public offering, even though its shareholders promised to invest half the money. The offering was to be held at a price of NIS 0.44 per share.
Exalenz's share price rose 10.1% by mid-afternoon to NIS 0.39, giving a market cap of NIS 52 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 25, 2012
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