Israeli company HeraMED (ASX: HMD) successfully completes its IPO of $6 million (NIS 15.8 million) at A$0.20 per share and subsequently lists on Australian Stock Exchange. Official share trading on ASX begins tomorrow.
HeraMED plans to utilize the raised capital for research and development, working capital requirements and for marketing and sales campaigns. The company also has loan repayment plan of $205,000 Meytar Engineering.
Plans for HeraBEAT
Founded in 2011, the company plans to utilize the raised capital for boosting commercialisation of the Company’s flagship product-HeraBEAT in Israel, UK and Germany. HeraBEAT is smartphone based, efficient fetal heartbeat monitoring system for expectant mothers. HeraMED’s CEO and Co-Founder, David Groberman, commented: “Our HeraBEAT device empowers expectant mothers to monitor their unborn child’s heartbeat anytime, anywhere which gives parents peace of mind about the health of their unborn child.”
The MedTech start-up has also received TGA (Therapeutic Goods Administration) approval for HeraBEAT on 28 November 2018 allowing it to expedite its product launch into the Australian market. This adds to the Company’s existing regulatory approvals- CE in Europe and AMAR in Israel, which include CE (Europe) and AMAR (Israel). The company is also undertaking serious efforts in obtaining FDA approval in US.
Distribution Partnership with US Based Teva
HeraMed has entered into a marketing and distribution partnership with TEVA Pharmaceutical Industries Ltd (NASDAQ: TEVA), permitting TEVA the exclusive right to sell HeraBEAT in Israel. The strong collaboration is expected to provide more than $ 2 million in the first 3 years. The agreement specifies a minimum distribution of $140,000 for the heart beat monitoring devices in the first year.
Mayo Clinic Collaboration
HeraMED is currently running significant programs in collaboration with health institution Mayo Clinic, a world-leading US medical centre which integrates clinical practice, education and research. This involves HeraBEAT for Mayo Clinic and developing its AI powered “Orion” project.
ASX listing of Israeli companies
There has been a growing trend of Israeli companies going public in Australia. In its recent IPO, Shekel Brainweight (ASX: SBW), Israel based tech company involved in developing and manufacturing advanced weighing systems, raised $10.2 million by issuing 29 million shares at a price of $0.35. IT company Security Matters Limited (ASX: SMX), also raised $6 million.
The Company is also in the final stages of completing a comprehensive B2C platform scheduled for launch in early 2019. This platform is being built to support cross-channel, multi-language, multi-country content including a designated e-commerce website which will be supported by a digital and social media marketing campaign.
For the half year ended 30 June 2018, HeraMED Israel reported $US27,000 total revenue since it is yet to launch foetal monitoring system. The IPO is expected to cover its annual loss of $99000. The company’s balance sheet reflects a cash balance of US$1,492,000; total assets of US$3,305,000; total liabilities of US$2,888,000.
In the light of recent Israeli IPO at ASX, investors may want to keep the stock in their watchlist in coming few days.
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