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Medivie Therapeutics (TASE: MDVI) is the focus of market attention after Yorkville invested $870, 000 in the company, which develops and markets dental products for migraine and chronic pain treatment. Under the terms of the deal the US investment fund will invest for the allocation of 3.96 million company shares.
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The allocated shares are subject to resale restrictions, and it was agreed that Medivie would have to issue a prospectus in order to lift the restrictions on the allocated shares. The agreement established two adjustment mechanisms, based on the value of the company’s shares at specific times, in order to ensure that Yorkville’s proceeds from the sale will be at least $900, 000.
Medivie is also holding talks for an additional agreement with Yorkville for a loan of up to $2, 915, 000. The final terms of the loan agreement have not yet been established, and it is still not certain whether this deal will be finalized.
Medivie CEO Joshua Rurka said, “We are happy about connecting up through the agreement with Yorkville, and we believe that this initial investment will promote the company’s implementation of future clinical and business procedures. The funds will allow us to ensure financing and managerial flexibility with the continued product introduction of Laboraide product for use during labor, as well as other strategic areas, and will help us prepare to begin clinical trials for another medical indication, migraines. We believe that Yorkville’s investment agreement represents another step in the company’s advancement towards growth and the creation of value for shareholders.”
Medivie attracted a great deal of market attention a few weeks ago, and its stock jumped by hundreds of percent within a few days, due, among other things, to its announcement that it had received approval from the Beilinson Hospital Ethics Committee to initiate a clinical trial to strengthen the proof of Laboraide’s clinical efficacy in shortening the second stage of labor (the pushing stage), and reducing of pain.
Published by Globes [online], Israel business news – www.globes-online.com
