Yorkville Advisors is continuing to invest in Israeli companies, and this time it is in Intec Pharma Ltd. (TASE: INTP). Intec, which has developed a delayed release pill for the treatment of Parkinson's disease, reported yesterday to the stock exchange that, according to a memorandum of understanding it reached with Yorkville, which is subject to the signing of the binding agreement, Yorkville has committed to invest up to $12 million in Intec over the next three years, against the allocation of company shares, and following the fulfillment of prior conditions.
The fund's investment in Intec against the allocation of shares will be implemented only according to the company's investment requirements, as conveyed to Yorkville from time to time. The company is not required to utilize the entire investment amount, or any specific part of it.
Each investment request will be limited by the fact that the amount of shares that will be allocated to the fund, will not result in the fund holding more than 4.99% of the voting rights arising from the company's share capital. This form of investing known as SEDA (Standby Equity Distribution Agreement) became popular during the economic crisis, but has not yet disappeared.
Intec is about to finish its stage IIb clinical trial during the last quarter of 2011 for an accordion pill that treats Parkinson's disease. Following its completion, and depending on its results, Intec will begin searching for a partner to finance subsequent drug development, or a third stage trial, which is the last efficacy stage before the drug is marketed.
Intec's current market cap is NIS 258 million, or $76 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 25, 2011
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