CollPlant Holdings Ltd. (TASE: CLPT), which develops recombinant human collagen from tobacco plants, has raised NIS 18.6 million and announced a new distribution agreement with Sigma-Aldrich Corporation (Nasdaq: SIAL).
In late November, CollPlant published a prospectus to raise NIS 22 million in an offering of shares and warrants. A few days later, the company lowered the asking price per unit from NIS 1,500 to NIS 1,350. The offering was held at the lower price and was oversubscribed.
CollPlant offered units comprising 1,000 shares at NIS 1.35 per share and 400 warrants at no cost. The four-year warrants are exercisable at NIS 2.03 per share. CollPlant's share price rose 0.8% today to NIS 1.33, giving a market cap of NIS 140 million.
The ability to produce human collage from tobacco plants enables CollPlant to develop a range of collagen products for bone and cartilage.
CollPlant was founded at Meytav Technological Enterprises Innovation Center Ltd., owned Biomedix Incubator Ltd. (TASE:BMDX). Meytav owns 6% of CollPlant, and Biomedix subsidiary Spearhead Investments Ltd. owns 11.9%. Spearhead bought 1,333 CollPlant units in the offering for NIS 1.8 million.
In a separate development, CollPlant announced that chemical and biochemicals products manufacturer Sigma Aldrich will distribute CollPlant's collagen product to the global research market, including universities and hospitals, which will use the products for laboratory research. Sigma Aldrich has already placed its first order, for an insubstantial amount.
Published by Globes [online], Israel business news - www.globes-online.com - on December 5, 2010
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