Israeli medical device company Nanox Imaging Ltd. (Nasdaq: NNOX) has priced a secondary public offering of 3,091,635 at $62.50 per share to raise $193.2 million. Following the announcement, the company's share price fell 10.28% on Nasdaq yesterday to $73.54, giving a market cap of $3.4 billion.
The share price has more than quadrupled since the company held its IPO in August at a company valuation of $800 million and with the previous shareholders stakes now unblocked some shareholders are cashing in. Nanox stressed that it is not selling any new shares and will not receive any proceeds from the sale of its shares, which are being offered by the selling shareholders.
Nanox has developed a lightweight, mobile CT scanner, and has a business model based on a unique medical screening as a service (MSaaS) to allow wide distribution and accessibility, and charging health providers with a pay-per-scan service model. The device has yet to receive FDA marketing approval and in December was asked to submit more information in what was overall a positive evaluation of the scanner.
Cantor Fitzgerald & Co. and Oppenheimer & Co. are acting as joint lead book-running managers for the offering. BTIG and Berenberg are acting as joint lead managers and Ladenburg Thalmann & Co. Inc. and LifeSci Capital are acting as co-managers for the offering
Based in Neve Ilan near Jerusalem, the company was founded in 2012 by CEO Ran Poliakine. Nanox raised $137 million before the IPO from investors including Korea's SK Telecom, Industrial Alliance, Yozma Korea, Foxconn, Fuji, and Jin Ji Full.
In September, Nanox had to withstand two assaults from short-sellers Citron Research and Muddy Waters, who both claimed the company was a complete fraud. Since then the company's market cap has risen from $1.3 billion to $3.4 billion.
Published by Globes, Israel business news - en.globes.co.il - on February 11, 2021
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