Biomed investment company The Trendlines Group Ltd. has filed a final prospectus with the securities regulatory authorities in Ontario, British Columbia, Alberta, Saskatchewan, Manitoba and Nova Scotia for an IPO. The company also announced the pricing of its Offering of up to 2,638,889 ordinary shares at a price of C$3.60 per share for gross proceeds of C$9.5 million at company value of C$80 million, after money. Most of the shares have already been allocated.
The agents have been granted an option to purchase up to an additional 395,833 Ordinary Shares in an over-allotment option; should the over-allotment be fully exercised, total gross proceeds from the offering will be $10.925 million. Closing is scheduled to take place on or about September 30 and Trendlines has received conditional approval to list its ordinary shares on the Toronto Stock Exchange under the symbol (TLG). The IPO had been planned for July but was postponed due to Operation protective Edge.
Trendlines was founded in 2004 by Todd Dollinger and Steve Rhodes - two US immigrants that live in the Galilee. Their initial idea was to provide business consultancy services for medical companies but they subsequently won concessions to operate two technological incubators Misgav in the Galilee and Mofet B'Yehuda in Kiryat Arba. These have since been renamed Trendlines Medical and Trendlines AgTech). These groups have nurtured companies that have enjoyed IPOs on the Tel Aviv Stock Exchange (TASE) and exists. For example, FlowSense which was sold to Baxter, PolyTouch which was sold to Covidien, Innolap which was sold to Teleflex, and Inspiro which was sold to Opko Health. These exits were worth about $10 million each to the company for an investment of several hundred thousand dollars in the incubator and up to $5 million subsequently, thus generating worthy returns. The company made profits of $16.7 million in 2013 and $4.7 million in the first half of 2014. Its current portfolio of 40 companies is worth an estimated $81 million.
Trendlines lead companies are: ApiFix (29.4%), developing a minimally invasive device for treating adolescent scoliosis; IonMed (29.6%), developing advanced tissue welding enabled by cold plasma; Medivalve (37.4%), developing precise placement in aortic valve replacement; Stimatix (28.4%), developing low profile colostomy appliances; and ETView (27.4%) developing continuous airway visualization during lung isolation procedures.
Published by Globes [online], Israel business news - www.globes-online.com - on September 23, 2014
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