InSightec completes first stage of $150m financing round

David Koch  photo: Carl Allegri, Reuters

InSightec has developed a device that focuses ultrasound on special tissue to cause thermal ablation and destroy the target issue.

Elbit Medical Technologies Ltd. (TASE:EMTC), which holds 18% of Gamida Cell and 24% of InSightec Image Guided Treatment Ltd., both of which are developing innovative technologies for treatment of cancer and other diseases, has announced the completion of the first stage of a $150 million financing round for InSightec. Koch Disruptive Technologies, a subsidiary of Koch Industries, led the round with a $100 million investment. Koch Industries is the leading oil, gas, and commodities corporation in the US, with an annual revenue turnover of $100 billion.

According to the announcement, InSightec will initially receive $90 million, and the rest will be transferred later. In its first announcement of the deal six weeks ago, Elbit Medical said that the investment would be in two stages of $75 million each, but the new announcement shows that the parties have chosen to increase the first stage and reduce the second one. InSightec's value for the financing round is $550 million, after money, assuming that both investment stages are completed. Following the total investment, Elbit Medical will hold 22% of the company.

InSightec has developed a device that focuses ultrasound on specific tissue to cause thermal ablation, thereby destroying the tissue without surgery. The company's products are approved for marketing in removing uterine fibroids, thermal ablation of secondary tumors in bones to reduce pain in patients with advance-stage cancer, and for thermal ablation of brain tissue without opening the brain for treatment of non-Parkinson tremors. Two weeks ago, Elbit Medical reported that it planned to issue an unspecified quantity of convertible bonds. The bonds are designed mainly to repay NIS 150 million in debt to Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT), Elbit Medical's controlling shareholder.

Published by Globes [online], Israel Business News - www.globes-online.com - on February 5, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

David Koch  photo: Carl Allegri, Reuters
David Koch photo: Carl Allegri, Reuters
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