Brainsway Ltd. (TASE:BRIN), the developer of the Deep TMS (transcranial magnetic stimulation) treatment for neurological disorders, has signed an agreement with private investors to raise $6.3 million in a private placement. The investors have an option to invest up to an additional $6.3 million within nine months at $17.99 per share (NIS 66 at today's exchange rate).
The placement will be made at NIS 60 per share, compared with Brainsway's opening price of NIS 64.68, giving a market cap of NIS 823 million. The share price fell 3.4% by early afternoon to NIS 64.68.
Brainsway will issue shares on the basis of the prevailing exchange rate at the date of the investment, and it will provide the investors hedges against investments in the subsequent issue of shares, including on Nasdaq, at lower share prices. The hedge will be valid for nine months.
Brainsway recently withdrew a planned Nasdaq offering.
Brainsway CEO Uzi Sofer said that the placement was made with two high-quality investors: Walter Rubin, the company's president in the US, and Avi Meizler, its distributor in Brazil, who is making his second investment in Brainsway through his company.
Published by Globes [online], Israel business news - www.globes-online.com - on May 16, 2013
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