Urine monitor developer Flowsense Medical Ltd. (TASE: FLSN) today announced that it has a draft agreement for the sale of its assets to an international medical devices company at a value of $7-10 million, and that the companies are in talks on a potential deal. The company first announced the talks in November.
Flowsense's share price was unchanged at NIS 1.87 by early afternoon, giving a market cap of NIS 21 million ($5.7 million), 19% less than the lower estimated value of the deal, if it materializes.
If Flowsense is sold, it will be second sale of an Israeli life sciences company so far this year. However, in contrast to the sale of the assets of crop bioengineering company Rosetta Green Ltd. (TASE: RSTG), which generated a substantial return for most of its investors, including public shareholders, the expected return on the sale of Flowsense's assets will barely cover the investment in its IPO.
Flowsense merged with a stock market shell at a company value of NIS 44 million ($12 million) in August 2010, and its market cap peaked at NIS 95 million. The company has made no secondary offerings. The main beneficiaries from the company's sale will probably be its original investors: Shraga Feivish Karpfen, who owns 10%, and Trendlines International Ltd., which owns 18%. They invested a few million dollars in the company in several financing rounds before it went public. In the past year, they and private investors injected NIS 3 million into the cash-strapped company, in several rounds at the prevailing market cap of NIS 10-15 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 13, 2013
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