After abandoning its development of medical devices for the treatment of chronic wounds, LifeWave Hi-Tech Medical Devices Ltd. (TASE:LIFE) announced today that, yesterday, its board of directors approved a memorandum of understanding with Tohar Hashemesh Energy Ltd., which last week acquired part of the rights to three oil and gas exploration licenses - Gabriella, Shmuel, and Yitzhak - from Canada's Adira Energy Corporation (TSXV: ADL; Bulletin Board: ADENF; XETRA: AORLB8). Under the memorandum of understanding, Tohar Hashemesh will transfer its incoming activity to LifeWave against an allotment of LifeWave shares that will give Tohar Hashemesh a 90% holding in the company.
The agreement between LifeWave and Tohar Hashemesh is subject to various conditions, including the sale of all of LifeWave's activities to a third party and the repayment of all of its debts, and removal of the company from the TASE restricted list.
LifeWave added that it will work with Tohar Hashemesh on a capital injection to meet TASE rules for removal from the restricted list and transfer to the main list.
LifeWave's share price rose 76.8% in morning trading to NIS 0.55, giving a market cap of NIS 8 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 29, 2012
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