NanoVibronix files to raise $10m on Nasdaq

medical, medicine

The medical device company plans to move its headquarters to the US, while leaving production and R&D in Israel.

NanoVibronix, a company that has developed a system for vibrating medical devices, has published a prospectus for raising up to $10 million (it will actually raise $8-9 million). The purpose of the financing round, other than the money, which the company sorely needs, is to enable it to reach the main Nasdaq listing. Sources inform "Globes" that as part of a company shakeup, it plans to move its headquarters to the US, and company CEO Brian Murphy, the company's CFO, and its marketing setup will operate from there. The company R&D and production departments, consisting of 20 employees, will remain in Israel. NanoVibronix's device is used to treat pain and infections accumulating on medical devices and for esthetic treatments.

NanoVibronix is listed on the over-the-counter (OTC) exchange in the US, after being listed in 2015, when the window of opportunity for offerings closed, after the company failed to raise $8 million in its IPO at a company value of $24 million. The company's current market cap is $15 million. Despite NanoVibronix's relative seniority in the market, its revenue to date has been minimal. The company posted an $880,000 loss in the first quarter, on only $52,000 in revenue. Before its offering, the company had only $51,000 in cash as of the end of the first quarter. NanoVibronix raised $1 million in bonds in March.

NanoVibronix has special technology for creating a slight vibration using ultrasound, without creating any heat energy. The company produces and markets three products in Israel and Europe: Woundshield, which uses the vibration capability to encourage the healing of wounds; Painshield, which uses the same capability to treat pain, primarily muscle and joint pain; and Uroshield, which makes catheters vibrate in order to prevent infections in tubes and the creation of infections in the urinary passages. The company also has a skin rejuvenation product in the pipeline, and is conducting a trial a product for preventing lung infections caused by the use of breathing tubes. The product has received CE certification, meaning that it can be marketed in Europe. Painshield has been approved in the US, and insurers provide reimbursement for its use in hospitals, but not in private homes. NanoVibronix is conducting clinical trials to obtain US marketing approval for its product for preventing catheter infections.

One of the company's leading markets is Israel. If the financing round is successful, the company will complete its US catheter infection trial and bolster its marketing efforts for Painshield.

Most of the company's executives are from the US, while two of its major shareholders are Israelis: CMO and director Dr. Harold Jacob from the Hadassah Medical Center and company cofounder Dr. Jona Zumeris. The other shareholders are private investors, mostly US doctors, and one medical holding company - Rennova Health. NanoVibronix was founded in 2003.

Published by Globes [online], Israel Business News - www.globes-online.com - on June 26, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

medical, medicine
medical, medicine
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