Merchavia Holdings and Investments Ltd. (TASE: MRHL) today announced the completion of its investment in cannabis company Veoli. Veoli is developing a unique inhaler that enables patients to consume cannabis oil in an accurate dosage without the need for heating, evaporation or burning. Merchavia's share price is down 3% today, after moderate gains following announcements in the preceding days.
On Tuesday, Merchavia reported the signing of a memorandum of understanding for an investment in CDx, which is developing a test for diagnosing prostate cancer. Under the agreement, $3 million will be invested in CDx at a $65 million valuation. Merchavia owns 7.8% of CDx, fully diluted, worth $5.07 million (NIS 17.5 million) at the valuation in the investment deal. Merchavia's entire current market cap is NIS 18.8 million.
A week ago, Merchavia reported a memorandum of understanding for investing in RMDY Health, which has developed a system that enables drug companies to quickly set up a solution for digital heath and communication with the consumer. If the deal goes through, Merchavia's shares of RMDY will be worth $1.1-3.7 million.
Merchavia has a number of other investments: a 6% stake in heart arrhythmia company CardiacSense, which recently obtained an investment at a valuation of $30 million; a recent investment in EFA, which is developing a product for taking blood counts in real time in a doctor's clinic; and cannabis company Spectrum Cann, a subsidiary of Bazelet, which owns a cannabis plant and runs a delivery service for consumers - Merchavia has signed a non-binding letter of understanding for a $1 million investment in Spectrum Cann. Merchavia also owns 5.7% of Games 4 Pain (G4P), a medical devices company that uses game techniques to help patients manage chronic pain.
Merchavia is managed by chairman Rani Lifshitz and CEO Eli Arad.
Published by Globes, Israel business news - en.globes.co.il - on August 15, 2019
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