Weight loss co UltraShape falls 27% on offering

UltraShape Medical Ltd. (TASE: USLP) today held an offering to raise NIS 14.25 million on the basis of a prospectus whose final details were published after the market closed yesterday. The company uses focused ultrasound to remove unwanted body fat.

UltraShape's share price fell 26% today to NIS 0.051, giving a market cap about NIS 75 million.

The results of the offering are not yet definitely known, but it was apparently a success and closed at close to the price offered. Israel Seed Partners, which owns 63% of the company, bought 10% of the offering.

Ultrashape offered units of shares and warrants at a discount of NIS 0.057 per unit, giving an effective price of NIS 2.88 per share when the warrants are weighted. The share closed yesterday at NIS 0.069, which may explain today's plunge.

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