Brainsway Ltd. (TASE:BRIN) has raised NIS 24 million in a share issue on the Tel Aviv Stock Exchange. The money was raised without underwriters at a price similar to the share's market price, and the stock issue was coordinated by Migdal Capital Markets.
Brainsway also received $1 million over the weekend from the Japanese distributor with which it signed an agreement several weeks ago. The payment is for exclusive rights to distribute Brainsway's systems for treating depression and is the first of two such payments.
Brainsway is engaged in R&D and sales of medical equipment for the non-invasive treatment of common neurological disorders. The company has developed the Deep TMS (transcranial magnetic stimulation) treatment device, which has a unique structure and is connected to an electric current of changing speeds that creates an electrical field that can influence various areas deep in the brain (stimulating or repressing nerves), according to the frequency that it is applied. Brainsway has received FDA approval for marketing and sales of the system in order to treat depression.
Brainsway CEO Uzi Sofer said, "Due to the interest from organizations in Israel and abroad, the company decided to take advantage of the business momentum that it has gained and raise capital that will allow it to expand its production infrastructures and support speeding up sales of the Deep TMS system worldwide."
He added, "Brainsway is undergoing an impetus not seen since its founding and global activities are yielding significant achievements in Japan, the US, and other countries. At the same time, Brainsway is moving ahead with clinical trials that are reaching their final stages, and a broad multiyear R&D program, some of which is being implemented as part of the Chief Scientist's Magnet program, and increasing production capacity according to marketing and sales needs."
Brainsway's share price rose 1.4% in morning trading on the TASE to NIS 53.17.
Published by Globes [online], Israel business news - www.globes-online.com - on October 6, 2013
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