Medical device co KarmelSonix gets UK funding commitment

Trafalgar Capital has granted the start-up a $7.2 million equity line.

KarmelSonix Ltd. (ASX: KSX), which has developed devices to detect and assess the severity of asthma attacks, said today it had entered into a three-year ongoing funding arrangement with UK alternative investment fund Trafalgar Capital Specialized Investment Fund. The company said the arrangements comprise two parts: the first is a standby equity drawdown facility of up to $7.2 million and the second is a loan facility for up to $1 million as part of the amount of the $7.2 million total facility. Arbel Capital Group, Trafalgar's representative in Israel and IBI Investment House Ltd. advised on the deal.

Under the agreement, KarmelSonix will be able to draw up to $300,000 a month for a period of three years, in exchange for a stock allocation to Trafalgar at 95% of the price per share on the stock market on the five previous days, by advance notice. Trafalgar may not short-sell KarmelSonix shares during this time.

KarmelSonix was founded in 1996 as Karmel Medical. After it ran into financial difficulties it merged with an Australian company called PulmaSonix, and was folded together with it into an Australian shell company.

Published by Globes [online], Israel business news - - on August 25, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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