Brainsway Ltd. (TASE:BRIN) will offer one million shares on Nasdaq at $9-11 per share, according to a filing with the US Securities and Exchange Commission (SEC) on Friday. The offering will be held on the basis of the company's financial report for the first quarter of 2011.
Brainsway will raise a gross $9-11 million, depending on the final offering price, only half to one third of the $20-30 million that the company originally hoped to raise.
Brainsway's Deep TMS (Transcranial Magnetic Stimulation) is a noninvasive therapy for neurological and psychopathological disorders. The company is carrying safety and efficacy clinical trials of the system to treat addiction, depression schizophrenia, Parkinson's disease, obesity, eating disorders, and post-traumatic stress disorder.
Brainsway will also offer 666,667 warrants; each unit will comprise of one share and two-thirds of one warrant. Each warrant is exercisable for one share at 135% of the offering price. The shares will be listed on Nasdaq under the symbol "BRIN". Roth Capital Partners and Maxim Group LLC are the underwriters for the offering.
In the notice to the TASE, Brainsway said that, in view of the structure of the offering and to limit the dilution of current shareholders' stakes in the company, it decided to scale back the size of the offering. "The company believes that, in view of its current cash reserves, reducing the size of the offering will not adversely affect the company's ability to finance its business activity in the short and mid-term."
The company added, "We have never declared or paid cash dividends to our shareholders and we do not intend to pay cash dividends in the foreseeable future. We intend to reinvest any earnings in developing and expanding our business."
Brainsway's share price on May 23, the date of the filing, was NIS 33.30 ($9.47 at the Bank of Israel representative exchange rate for that day). The share price fell 5.6% in morning trading today to NIS 29.87, giving a market cap of NIS 374 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 29, 2011
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