Exalenz Bioscience Ltd. (TASE:EXEN) intends to raise NIS 20 million, apparently in a rights offering. The company's parties at interest, including Agis founder Moshe (Mori) Arkin, have expressed their interest in participating in the offering. The company has developed and markets the BreathID system, which analyzes patients' exhaled breath to diagnose diseases of the liver and gastrointestinal tract.
Following a 10% jump yesterday, Exalenz's share rose another 1.2% by midday today to NIS 0.93, giving a market cap of NIS 23.6 million.
Exalanz has also made a number of management changes. Arkin has resigned as chairman, but will continue as a director. CEO Dr. Uri Geiger has been appointed chairman, and CFO Steven Eitan has been appointed CEO.
Exalenz believes that the rights offering will provide sufficient cash to meet the company's needs through the third quarter of 2010. By then, the company hopes to obtain US marketing approval for BreathID's diagnosis of liver diseases. The device is currently undergoing a multicenter clinical trial for this indication.
Geiger said, "The company has undergone a challenging year. When the crisis broke out, we realized that there would be no exercise of warrants in June. We had relied on the exercise of these warrants to raise NIS 50 million for the financing of the liver trial."
Exalenz also suffered another blow. "Pfizer, with whom we were collaborating in the liver trial, has quit this field altogether. This exacerbated the company's need to find alternative independent financing for its activity," Geiger said.
Published by Globes [online], Israel business news - www.globes-online.com - on January 26, 2009
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