TEL AVIV, Israel--(BUSINESS WIRE)--Elron Electronic Industries Ltd. (TASE & NASDAQ: ELRN), announced today that its group company, Medingo Ltd., wholly owned by its subsidiary, RDC Rafael Development Corporation Ltd. ("RDC"), has completed a financing round of approximately $27 million, jointly led by Elron, which will invest between $13 million and $22 million (including $4 million of convertible loans) and Radius Ventures, a U.S. venture capital fund, which will invest $5 million. Medingo is developing solutions specifically for the needs of insulin-dependent diabetic patients. Medingo’s device is a miniature dispensing patch, which is convenient, easy to use, discreet and more cost-effective than standard insulin pumps. Medingo is in advanced stages of the development of this device, and it expects to receive FDA approval and to commence sales in 2008. Following the transaction, Elron will hold, directly and indirectly through RDC between 49% and 62% of Medingo's outstanding shares, depending on the amount of its investment.
