Medigus Announces Signing of $11.1 Million Private Placement by Leading Israeli and U.S. Institutions
OMER, Israel, June 29, 2014 (GLOBE NEWSWIRE) -- Medigus Ltd. (TASE:MDGS), a medical device company developing minimally invasive endosurgical tools and procedures, announced today the signing of private equity placement agreements in the aggregate of $11.1 million including shares and warrants. Approximately half of the amount will be raised from leading Israeli investors, led by entities from the Migdal Insurance Group, with the remainder including U.S institutional investors Sabby Management, Armistice Capital and Senvest. Returning investors include Orbimed, Medigus’ controlling shareholder. As part of the transactions, Medigus has granted registration rights to the investors via the completion of an ADR trading program or TASE release prospectus within seven months of the closing of the investment.
Chris Rowland, Medigus’ CEO stated: “We are pleased to announce the signing of these investments with leading institutional investors from Israel and the U.S., including funds that specialize in healthcare. These investments reflect the confidence of investors in our strategy and vision. Increasing our capital base will support our strategic plan of expanding the use of our MUSE™ system, and will enhance our position as a leader in the minimally invasive endosurgical market, with the ultimate goal of enhancing shareholder value.”
Dr. Nissim Darvish, Chairman of the board of Medigus and Senior Managing Director at Orbimed Israel added: “We are confident that Medigus’ management will lead the Company to a successful execution of its strategic plan and growth in the coming years.”
The proceeds will be used for working capital and general corporate purposes. Medigus anticipates initial revenues from the MUSE™ system in 2014.
ROTH Capital Partners, LLC and Ladenburg Thalmann & Co. Inc. are serving as co-exclusive placement agents on the transaction.
The closing of the investments are subject to shareholder approval, anticipated within the next 45 days.
About Medigus
Medigus is leading the transition from invasive gastric surgery procedures to less invasive, patient-friendly techniques through the development of minimally invasive endoscopic devices and procedures. The Company’s revolutionary MUSE™ system enables endoscopists to treat gastroesophageal reflux disease (GERD), a chronic disease with increasing global prevalence, by performing a fundoplication procedure through the mouth. Unlike current fundoplication procedures, the MUSE™ system does not require abdominal incisions, which may result in shorter post-procedure recovery. The MUSE™ system (previously known as the SRS™ system for transoral fundoplication) has received FDA clearance and CE mark. Medigus is traded on the TASE (Tel Aviv Stock Exchange). To learn more about the company’s minimally invasive technology platform, please visit http://www.medigus.com/.
INVESTOR CONTACT:
Miri Segal-Scharia
Hayden/ MS-IR LLC
Tel: 917-607-8654
MEDIA CONTACT:
Chantal Beaudry/Carrie Yamond
Lazar Partners Ltd.
212-867-1762
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