Merchavia Holdings Completes Successful Offering in TASE


RAMAT GAN, Israel, /PRNewswire/ --  

Merchavia Holdings and Investments (TASE: MRHL), an Israeli investment company specializing in early stage life sciences companies, announces completion of a successful offering in shares and options. As part of the offering, the company offered 46,000 units including option warrants, 100 shares, 50 series 2 option warrants, at an exercise price of NIS 0.48, that can be exercised by 17.1.2019, and 50 series 3 option warrants of NIS 0.85, that can be exercised by 28.11.2019.

The units were offered through a tender at a price per unit, which was no less than NIS 55 per unit, and the company has given rights to an additional allocation of units in the case of oversubscription.

As part of the tender, 74 orders were received for purchasing 74,700 units that were ordered at the price of the unit or a higher price and consequently there was an oversubscription and the company activated its right for an additional allocation, as part of which 4,233 units were allocated to buyers that had submitted orders at the price per unit which was set.

Similarly, the price which was set per unit was NIS 57, higher than the minimum price. The immediate (gross) proceedings received by the company totaled about NIS 2.9 million and on the assumption of the full exercise of options, the company will raise an additional amount of about NIS 3.3 million.

Eli Arad, CEO of Merchavia: "We are happy at the vote of confidence by the company's investors, management and in the business potential of our portfolio companies. Our portfolio companies have accomplished business and clinical achievements over the past two years and raised funds of increasing amounts while creating value for Merchavia's shareholders.

"In addition, we recently announced a strategic commercialization agreement for Juventas with the giant Japanese pharmaceutical company 'Astellas Pharma'. We continue to expand our portfolio of companies and last week we signed an agreement of principle for our first investment in the medical cannabis sector, in an Israeli company developing breakthrough technology for the consumption of medical cannabis oil in precise dosages without the need of heating.

"We believe that the current funds raised will allow us to continue to enlarge our portfolio of companies and to commercialize their technologies with the aim of creating significant value for Merchavia's shareholders."

About Merchavia

Merchavia Holdings and Investments (TASE: MRHL) is an Israeli company specializing in investments in early-stage and promising startups operating in leading high-demand areas of the life sciences, working together with leading medical institutes worldwide – including Cleveland Clinic in the US. Merchavia's portfolio companies include CDx (Cleveland Diagnostics. 8% holding), which is developing a non-invasive method for early diagnosis of various types of cancer, by means of a blood test identification of the structural changes of the protein biological marker IsoPSA, which indicates the presence of the disease. In addition, the company recently reported reaching an agreement to acquire 6% of RMDY Health, which operates in one of the world's growing medical markets. The company is developing and providing digital medical platforms, which allow organizations in the health sector to switch swiftly and efficiently from providing traditional expensive medical services based on a meeting with the patient to digital medicine, which allows ongoing remote, online management of patients. In addition, Merchavia holds 7% of CardiacSense, which is developing a wearable device to detect A FIB (Atrial Fibrillation), based on a unique combination of patented technologies developed by the company for reading optical signs and feeling movement, pressure, temperature and more – giving the product high credibility by cancelling out reading mistaken signs. In October 2018, The company announced that Merchavia was entering the chronic pain market by investing in G4P (Games for Pain), a portfolio companion in an incubator in which the Maccabi Health Fund is a partner. Merchavia will invest about 600,000 NIS according to milestones for a 6% stake of the Israeli company, which is developing an AI based platform for the neurological rehabilitation of chronic pain – a market worth $635 billion annually in the US, G4P will focus at the beining on fibromyalgia, which afflicts 3%-6% of the world's population. Merchavia also announced in October 2018 its intentions to enter into the medical cannabis R&D sector, with an emphasis on R&D companies. The company's management offices are in Ramat Gan.

Eli Arad


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SOURCE Merchavia Holdings and Investments

Company Codes: Bloomberg:MRHL@US, ISIN:IL0002570146, RICS:MRHL, RICS:MRHL.OB, RICS:MRHL.PK, TelAviv:MRHL

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