The company plans to raise NIS 30 million in shares and at a company value of NIS 100 million.
Brainsway Ltd. has filed a prospectus to raise NIS 30 million in shares and warrants on the Tel Aviv Stock Exchange (TASE) at a company value of NIS 100 million. Clal Finance Underwriting Ltd. and Gaon Underwriting and Investment Ltd. are the underwriters. Brainsway is developing a non-invasive magnetic therapy for clinical depression.
Although Brainsway’s concept seems almost like science fiction, investors have apparently been swayed that the product is effective on brain function. A week ago, the company’s institutional tender for 80% of the offering was 1.4-times oversubscribed.
Brainsway completed its Phase I human clinical trials to demonstrate the device’s safety in 2005, and it plans to submit the results to the US Food and Drug Administration (FDA) soon.
The company lost NIS 7.3 million in January-September 2006, mostly because of a NIS 5.3 million investment in R&D. The company has a shareholder’s equity deficit of NIS 5 million.
Published by Globes [online], Israel business news - www.globes.co.il - on December 27, 2006
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