More details are emerging about the new $150 million fund that Dan Suesskind and Prof. Shlomo Ben-Haim are raising. Half of the money is expected to come from Israeli institutional investors led by Migdal Capital Markets Ltd., and half will be raised internationally by Morgan Stanley, which is leading the investment as a whole.
The bond issue will be allocated to MedInvest, jointly managed by Ben-Haim and his longstanding partner, Lewis Pell. Suesskind does not yet have an official position in the venture, but he has accompanied Ben-Haim to meeting with institutional investors and serves as an adviser. He is closely involved in the offering procedures.
MedInvest will use the proceeds of the offering to provide loans to five companies in which Ben-Haim already has shares: Impulse Dynamics NV, MetaCure Ltd., Spectrum Dynamics Ltd., Core Dynamics Inc., and Motorika Medical Ltd. The partners will transfer shares in these five companies to a trustee and they will serve as guarantee of the investment.
MedInvest's bonds will mature in seven years. They will carry LIBOR plus 0.8% interest a year. Investors will also receive bonuses of 4-10% when the companies make an exit. The bonus will be set in advance for each company. If there are no exits within two years, the interest will increase.
MedInvest's investments in the five companies will be as follows: Impulse Dynamics, which is developing electrical cardiology stimulators - $66.5 million; MetaCure, which is developing electrical stimulators for the prevention of obesity and diabetes - $19 million; Spectrum Dynamics, which is developing improved nuclear imaging solutions - $33.25 million; Motorika Medical, which is developing Reotherapy, robotic assisted therapy for stroke rehabilitation - $9.5 million; and Core Dynamics, which is developing freezing, thawing and freeze drying technologies for cell, tissue, and organ preservation - $14.25 million. An additional $7.5 million will used for administrative and other costs, including IPO costs.
Almyra and Hobart Holdings Ltd. will provide the companies with legal, regulatory, and personnel services. Pell and Ben-Haim use the two companies as management companies.
Published by Globes [online], Israel business news - www.globes-online.com - on July 24, 2008
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