D Medical shares plunge after disappointing Nasdaq offering

The company raised $12 million at $7 per share.

Diabetes treatment devices holding company D Medical Industries Ltd. (TASE:DMDC) raised $12 million at $7 per share in its offering on Nasdaq yesterday. Sources inform ''Globes'' that that US investors purchased $7 million worth of shares and that Israeli investors bought $5 million.

Trading in D Medical on the TASE was suspended yesterday for the entire day because of the Nasdaq offering. The ticker will be "DMED". The share price plummeted 20% in morning trading on the TASE today to NIS 26.05, giving a market cap of NIS 199 million.

D Medical hoped to raise $20-25 million in an offering of 2.7 million shares at $10-12 per share, according to the revised prospectus. The mid-point share price would have raised $17.3 million.

D Medical owns 94.2% of Nilimedix Ltd., which has developed an insulin pump; 92% of G Sense Ltd., which is developing a continuous glucose monitor; 90.1% of Medx-Set Ltd., which is developing components for insulin pumps; and a stake in Sindolor Medical Ltd. through a 58.2% holding in NextGen Biomed Ltd., which is developing a painless needle.

Published by Globes [online], Israel business news - www.globes-online.com - on August 5, 2010

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

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