Foreign Investor Buys NIS 11 Million Stake in BioLight

Bio-Light Israeli Life Sciences Investments announces allocation of 30 million shares to foreign investor; Makov, Yochanan Korman and Ron Weissberg gained control of company in March 2011 with NIS 11.6 million for 28.8% of its shares at company valuation of NIS 40 million.

Yoram Gabison
Yoram Gabison
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Yoram Gabison
Yoram Gabison

BioLight Israeli Life Sciences Investments announced Tuesday that it is allocating 30 million shares, representing 11.3% of its fully diluted equity, to a foreign investor for NIS 10.5 million. The price, NIS 0.35 per share, reflects a 21.5% premium over Tuesday's opening trading price. The shares will be allocated upon receipt of payment, expected by July 30.

BioLight signed an agreement at the end of June giving it control of Micromedic Technologies by transferring ownership of its subsidiary Zetiq to Micromedic in exchange for an allocation of 20% of Micromedic shares, valued at NIS 8.5 million. BioLight will thus become Micromedic's largest shareholder, and its controlling owner Israel Makov will be appointed Micromedic's acting chairman. BioLight will also appoint the majority of Micromedic's board of directors.

Makov, Yochanan Korman and Ron Weissberg gained control of BioLight in March 2011 by investing NIS 11.6 million for an allocation of 28.8% of its shares at a company valuation of NIS 40 million.

BioLight CEO Suzana Nahum Zilberberg said the investment represents a vote of confidence in the company's strategy and the added value of its operating model: clustering companies with similar operations to create value through the sharing of knowledge and economies of scale.

Zetiq develops CellDetect technology for the detection of cancerous cells through the staining of cancerous cells. This method is useful for diagnosis and tracking the effect of drugs on cancerous cells. Zetiq has a product approved for marketing by European health authorities for the early detection and monitoring of cervical and bladder cancers.

Micromedic develops diagnostic kits for identifying cancer patients suffering from osteonecrosis (rotting ) of the jawbone resulting from the use of bisphosphonate drugs in cancer patients such as Zometa and Aredia by Novartis, and Alendronate by Merck & Co. The incidence of this side effect is 19% among multiple myeloma sufferers, 1.2% to 12% for breast cancer patients, 6.5% to 7.5% for prostate cancer patients treated with Aredia, and 0.1% for osteoporosis patients treated with Fosamax.

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