Israeli biotech start-up SialoTech Ltd. has raised NIS 32.5 million in its IPO held on the Tel Aviv Stock Exchange (TASE) yesterday. The offering of stocks, warrants and enforced convertible bonds, was held at the minimum price and was slightly oversubscribed by 1.03%, although 80% of the securities were sold in the institutional tender, which was oversubscribed fourfold. Poalim-Poalim IBI Underwriting and Investments Ltd. (TASE:PIU) and Leader Capital Markets Ltd. (TASE:LDRC) were the underwriters for the IPO.
Sialo Tech develops medical devices for the treatment of Temporomandibular Joint (TMJ) syndrome and stones in the salivary glands. The company has developed a system which adapts to existing laser devices and changes its application to that of a device for the pulverization of stones in the salivary gland and the filing of hard tissues in the jaw for the treatment of TMJ.
The company has obtained EU CE Mark certification for its disposable endoscopic devices for treating stones in the salivary glands, and it expects to receive US Food and Drug Administration (FDA) approval by the end of the year. This is the milestone that has been set as the determining event for the forcible conversion of bonds. The company's devices and procedure were recently added to health services baskets in Israel and Germany, a development that will make a significant contribution to its sales. Sialo Tech has successfully completed the trials of its laser product on human subjects, but it has not yet been approved for marketing. It's product for root canal treatment is due to commence trials on human subjects in the near future.
Sialo Tech recorded sales of just NIS 15,000 in the first nine months of 2006.
Published by Globes [online], Israel business news - www.globes.co.il - on March 13, 2007
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