The first public offering on the Tel Aviv Stock Exchange (TASE) by a biomed company this year was a little more than half successful. Biotech company ProCognia (Israel) Ltd. (TASE:PRCG) raised NIS 6.4 million using a shelf prospectus, when it had asked to raise NIS 11 million. The secondary offering of shares and warrants was not guaranteed by its lead underwriter Leader Underwriters (1993) Ltd.

Procognia CEO Alon Natanson said, We do not see this offering as a failure. We originally intended to raise between NIS 3-9 million. This is suitable for a company of our equity value. We don't have to be pigs. So it worked out exactly in the center of the range we wanted. I wouldn't have completed the offering if it had been beneath the minimum price that we set for ourselves."

So why did you propose an offering of NIS 11 million?

Natanson said, "Before the offering there was suddenly a jump in equity and in trading of the share, following the signing of an agreement in principle for a marketing contract with an international company . So we said , 'In light of this we will at least not limit ourselves."

Procognia's share did indeed rise sharply last month following the announcement of a marketing agreement with an international company for its glycolanalysis (blood sugar) product for testing sugar molecular structures on proteins in drugs.

ProCognia finished 2009 with NIS 6 million in cash, having used up NIS 2 million during the year.

ProCognia's share was up 2.2% by early afternoon on the TASE today to NIS0.047, after falling 7.7% yesterday.

Published by Globes [online], Israel business news - www.globes-online.com - on February 8, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010