Brainsway Ltd. (TASE:BRIN) has decided to postpone its offering on Nasdaq, citing prevailing market conditions, in particular the pricing offered by the underwriters.
In a notice to the TASE today, Brainsway added, "The company believes that it has sufficient cash reserves to finance its operations in the short and medium term without the capital it planned to raise in the offering."
Brainsway stated in its financial report for the first quarter that it had NIS 49 million in cash and cash equivalents at the end of March.
Last week, Brainsway cut the price for its proposed offering to $9-11 per share, raising a gross $9-11 million, only half to one third of the $20-30 million that the company originally hoped to raise.
Brainsway's Deep TMS (Transcranial Magnetic Stimulation) is a noninvasive therapy for neurological and psychopathological disorders. The company is carrying safety and efficacy clinical trials of the system to treat addiction, depression schizophrenia, Parkinson's disease, obesity, eating disorders, and post-traumatic stress disorder.
Brainsway's share price fell 3.7% in morning trading on the TASE to NIS 26, giving a market cap of NIS 319 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 2, 2011
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