Sunday, January 21, 2007

Maayan Ventures medical device co Applisonix set for IPO

The company plans to raise NIS 33-35 million in shares and convertible bonds.
Gali Weinreb 18 Jan 07 13:11
Maayan Ventures Ltd. (TASE:MAYN) medical devices subsidiary Applisonix Ltd. has filed a prospectus to raise NIS 33-35 million in shares and convertible bonds in an IPO on the Tel Aviv Stock Exchange (TASE). Maayan Ventures owns 27.2% of the company.
AppliSonix has already obtained commitments from investment institutions for 80% of the offering. The public tender will be held on January 25. The underwriters are Altshuler Shacham Management Underwriters & Investments Ltd., Excellence Nessuah Underwriting (1993) Ltd., and Leader Underwriters (1993) Ltd.


AppliSonix is developing an ultrasonic depilatory device that delivers ultrasonic waves to the hair root, damaging it ability to function for an extended period. The product will first be developed for use by doctors and cosmeticians, but the company hopes to develop a product for use at home. The company said that its product is more effective and safer than laser or visible wavelength-based depilatory devices, and that it can be used by both blondes and brunettes.

AppliSonix can force the conversion of its convertible bonds if it meets the determining event of a Phase I clinical trial on at least 20 patients by an expert plastic surgeon who testifies that the device is at least as safe and effective as competing devices. This doctor may not have any business or family connection to the company, but he may be paid for the tests and opinion. The company believes that this determining event will be made during the second quarter of 2008.

AppliSonix has already developed a prototype, and it is due to undergo abbreviated US Food and Drug Administration (FDA) marketing approval procedure (510k). If all goes according to plan, the product’s market launch will be in 2009.

AppliSonix has raised $4.5 million to date from Maayan Ventures, Israel Infinity Venture Capital, Athena Cyprus, Cyventure Capital, Magari Ltd. and the Office of the Chief Scientist. The company lost NIS 3.8 million in January-September 2006, mainly because of R&D costs.

Published by Globes [online], Israel business news - www.globes.co.il - on January 18, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

I have a personal interests in both Maayan and Applisonix

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