Medica Venture Partners will invest in NIS 20 million to acquire 52% of Biomedix Incubator Ltd. (TASE:BMDX) and merge with it assets worth NIS 50 million, based on a valuation by an independent assessor. Medica also received an option on addition 7% of Biomedix's shares.
Medica, Israel's specialized first life sciences venture capital fund, will assume management of Biomedix together with its current CEO, Elad Naggar. Medica will receive NIS 4 million a year in management fees, plus 20% of the profits on any exit.
Medica will transfer the following assets to Biomedix: its 2.2% stake in Lumenis, cash flow from sale of superDimension Inc. to Covidien plc (NYSE: COV); possible cash flow from the success of Collgard Biopharmaceuticals to Halo Therapeutics Inc. in 2011; and its stake in InterCure Ltd. (TASE: INCR-L), which is in the process of being sold to XTL Biopharmaceuticals Ltd. (Pink Sheets:XTLBY); TASE:XTL).
Biomedix is a holding company whose main holdings are 21% of Allium Medical Ltd. (TASE: ALMD), 21% of NasVax Ltd. (TASE: NSVX), 15% of CollPlant Holdings Ltd. (TASE: CLPT), 6.4% of CheckCap Ltd., and 74% of Gefen Biomed Investments Ltd. (TASE: GEFEN), which owns the Meytag Technology Incubator and Ofakim Hi-Tech Ventures incubators. On the basis of the holdings' market caps and CheckCap's valuation at its last financing round, Biomedix's assets are worth NIS 54 million.
Medica's investment was made a company value of NIS 80 million, before money, for Biomedix, or NIS 0.52 per share, a 92% premium on Biomedix's opening price.
Medica has already signed deals to buy two-thirds of Biomedix chairman Meni Mor's stake in the company and the stake of co-founder Zeev Bronfield. They sold 9.1% of the company at NIS 0.57 per share, an even higher premium than today's deal, for a total of NIS 9.8 million. The two men will also each receive a management fee of NIS 492,000 and a NIS 202,000 non-competition payment, for a total of NIS 1.4 million.
Biomedix's share price rose 4.7% by midday to NIS 0.29, giving a market cap of NIS 38 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 12, 2012
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