Bio-Light Israeli Life Sciences Investments Ltd. (TASE:BOLT), controlled by Israel Makov, and Micromedic Technologies Ltd. (TASE:MCTC), have signed an MOU for the merger of their cancer diagnosis activity.
Under the agreement, BioLight subsidiary Zetiq will be transferred to full ownership of Micromedic, and, in exchange, BioLight will receive 20% of Micromedic, plus options on a further 5%. The value of the shares, not counting the options and a planned fund raising round, is NIS 8.6 million.
The agreement also states that Micromedic will raise an unspecified amount of capital on the basis of a shelf prospectus, and that, should it fail to do so, it will allocate additional shares to BioLight.
Micromedic is a cluster of companies in the field of cancer diagnostics by means of biological markers. Its leading product is a blood test for cancer of the large intestine, currently undergoing clinical trials.
Zetiq has developed technology for colored marking of cancerous cells to distinguish them from healthy cells. The technology's leading application, aimed at improving PAP tests for detecting cervical cancer, is still at the development stage.
"Micromedic fits BioLight's model of setting up clusters of companies," says Micromedic CEO Orna Pollack. "Zetiq, which will join our cluster, has activity that is within the boundaries of our field.
"The connection is natural," she adds. "Our team will deal with matters common to all the companies. In addition, teaming up with a person like Israel Makov, who has led companies in this field and has a high reputation, can take Micromedic in new and positive directions."
Published by Globes [online], Israel business news - www.globes-online.com - on June 29, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011