BioView Ltd. (TASE:BIOV) today announced that it raised NIS 1.12 million in a private placement. The company developed and markets an automated cell diagnostic system for cancer diagnosis.
BioView issued 700,000 shares at NIS 1.60 per share to MRC Investments Ltd., a private company wholly owned by Mordechai Cohen. MRC will own 5.42% of the company, and will have 4.25% voting rights on a fully diluted basis.
BioView's share price closing price prior to the placement was NIS 1.89; MRC obtained the shares at a 15% discount, and a discount of 1% on the average closing price for the previous 21 trading days.
Since BioView's shareholders' equity prior to the placement was NIS 1.5 million, the Tel Aviv Stock Exchange (TASE) would have put the company on the restricted list in July, unless it boosted its shareholders' equity to over NIS 2 million.
BioView president and CEO Alan Schwebel said, "The investment in the company by an outside investor shows a continuing vote of confidence in the company and in its vision. Completion of the placement, almost entirely, lifts the threat of relegation to the restricted list."
BioView's share price fell 7.6% by midday today to NIS 2.10, giving a market cap of NIS 28 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 7, 2010
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