Medigus raises NIS 7m in public tender

The company will use the capital for marketing and licensing agreement activities.

Medical device company Medigus Ltd. (TASE:MDGS) raised NIS 7 million in a public tender in Tel Aviv on Thursday. This is the first part in the company's attempts to raise NIS 12 million from the public and current investors through a rights issue.

Medigus, which develops endoscopes and specializes in treating heartburn, will use the money for marketing and licensing agreement activities.

The company recently announced that it is in advanced negotiations for an agreement to sell its devices in the US. The agreement, if concluded, will bring Medigus a payment of $4.5 million, an additional $6.5 million in potential milestone payments and 50% royalties on products manufactured in the US. Medigus believes the agreement will be signed within weeks.

Medigus' share was down 0.5% in the early afternoon to NIS 2.45, giving a market cap of NIS 132 million.

Published by Globes [online], Israel business news - www.globes-online.com - on September 22, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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