The Ticker: U.S. Adds Israeli to Mobileye Insider Trading Indictment

Navitas lowers minimum price retroactively after IPO elicits little demand ■ Pluristem shares rally after U.S. grants fast-track approval for drug ■ Tel Aviv shares end higher despite Teva drop

The Mobileye logo appearing on a screen at the post where it trades on the floor of the New York Stock Exchange, Monday, March 13, 2017.
Richard Drew/AP

U.S. adds Israeli to Mobileye insider trading indictment

The U.S. Securities and Exchange Commission last week amended its indictment in the Mobileye insider trading case against U.S. citizens Lawrence Cluff and Roger Shaoul, raising the possibility that Mobileye founders Amnon Shashua and Ziv Aviram may be eventually named as well. The amended document, submitted September 8, now adds Israeli James Shaoul to the indictment, which accuses the three of illicitly profiting from Intel’s $15.3 billion acquisition of Mobileye last March. The SEC asserts that Shashua and Aviram, who are identified in the indictment as Director A and Director B, were the original source of the then non-public information about Intel’s offer, which they passed on to James Shaoul. He in turned passed the information on to his brother Roger with instruction to buy Mobileye options and details of the Intel offer. TheMarker has learned that Shashua and Aviram were questioned by SEC investigators and submitted an affidavit denying the suspicions against them. (Shelly Appelberg)

Navitas lowers minimum price retroactively after IPO elicits little demand

Navitas Petroleum, the energy company formed and led by Gideon Tadmor, was forced late on Sunday to retroactively amend its prospectus to lower the minimum price after an initial public offering of shares elicited little interest. The company raised just 32 million shekels ($9 million) at a price of 8.20 per unit, 10% lower than the original minimum set in the prospectus. The offering for 25% in the company elicited orders from institutional investors of just 42 million shekels, but one told TheMarker that 10 million worth of the orders were at a price so low that Navitas rejected them. The revised offering price now values the company, which has stakes in 11 oil and gas projects in the Gulf of Mexico and another in Newfoundland, Canada, at just 192 million shekels. Underwriters are still counting on the public tranche of the IPO to raise another 16 million shekels and extended the deadline for orders to 10 A.M. Tuesday. (Eran Azran)

Pluristem shares rally after U.S. grants fast-track approval for drug

Pluristem shares rallied on Monday after the company was granted fast-track designation by the U.S. Food and Drug Administration for its Critical Limb Ischemia treatment. The FDA was weighing in on a late-stage trial of the company’s PLX-PAD cells patients who are not eligible for revascularization. In CLI, fatty deposits block arteries in the leg, reducing blood flow and causing non-healing ulcers and gangrene that can lead to amputation or even death. As many as 6 million people in the U.S. and Europe suffer from CLI, a number expected to grow as diabetes become more common. Pluristem’s Phase III CLI study is actively enrolling patients in the U.S. and Europe. “Regulators in some of the largest healthcare markets in the world are now in alignment regarding the need for accelerated approval pathways for our cell therapy product in the treatment of CLI,” said co-CEO Yaky Yanay. Shares of Pluristem ended 7.5% higher at 5.22 shekels ($1.48). (TheMarker Staff)

Tel Aviv shares end higher despite Teva drop

Tel Aviv shares finished higher on Monday even as Teva Pharmaceuticals suffered another big drop. The blue chip TA-35 index finished 0.7% up at 1,424.96 points, while the TA-125 gained 0.8% to 1,297.97, on turnover of 1.13 billion shekels ($320 million). Teva turned sharply lower in the final 90 minutes of trading to end down 2.8% at 62.61 shekels after RBC Capital lowered its U.S.-traded target price to $15 from $21. Frutarom led the most actives for a second day running, climbing 2.1% to 298. It was the seventh straight day of gains for the shares. Israel Chemicals finished ahead 2.75% to 15.50 and its parent Israel Corporation up 4% to 699.50. Delek Drilling advanced 5% to 11.15. Collplant extended gains made Sunday on news it won its first order for biological ink, rising 8.4% 50 agorot. ADO, whose shares have climbed in a struggle for control, added another 6.3% to 68.27. (Omri Zerachovitz)