CEO Ori Hadomi: The proceeds from the offering would be used to expand the company’s sales and marketing network in the US.
CEO Ori Hadomi
/ By Tali Tsipori /
Mazor Robotics Ltd. (Nasdaq: MZOR; TASE:MZOR) has filed a draft prospectus with the US Securities and Exchange Commission (SEC) to raise up to a gross $46 million in an offering of American Depository Shares (ADSs) on Nasdaq.
Mazor CEO Ori Hadomi told “Globes” that the amount stated in the prospectus was not binding, and could change.
Mazor listed ADSs on the Nasdaq Capital Market in May 2013, but did not raise capital from the public. Each ADS is equal to two Mazor shares listed on the Tel Aviv Stock Exchange (TASE). Mazor closed at $16.15 on Nasdaq on Friday, giving a market cap of $239 million, and fell 7.5% in morning trading on the TASE today to NIS 27.10. The company has $18.3 million in cash.
Mazor’s Nasdaq listing in May was the first step toward the raising of capital. The share price has risen 55% since the listing, demonstrating that Israeli investors are not the only ones to see the company’s potential. “As we’ve said before, it is important for us to expand our American investor base, ” says Hadomi. He adds that the proceeds from the offering would be used to expand the company’s sales and marketing network in the US, where it is now focused.
Mazor’s flagship product, the Renaissance surgical navigation system is used for precision spinal and neurosurgical procedures on the basis of a preplanned track. The software uses algorithms for automated image processing of CT scans to preset the coordinates the robotic unit navigates for the procedure. The robotic unit drives a rigid arm that directs the incision through which the surgical instruments are inserted. The system facilitates spinal surgeries, reduces the need for the surgeon to touch the spine, reduces the surgical team’s exposure to radiation, and reduces post-surgical complications.
Mazor is also laying the ground work to use the Renaissance system for neurosurgery, including for procedures to treat the symptoms of Parkinson’s disease, obtain tissue for biopsies, and precision interventions deep in the brain. The company has obtained EU CE Mark and US Food and Drug Administration (FDA) approval for the device.
The Renaissance system can be used to implant electrodes for deep brain stimulation (DBS) for an innovative treatment of Parkinson’s disease. In early September, the company reported the first successful use of the Renaissance system for a DBS treatment in Florida. The system has also been used for 36 brain biopsies in Germany, ahead of commercial launch of the system for this indication in early 2014.
2013 is shaping up to be the year of Israeli life sciences on Wall Street. Alcobra Pharmaceuticals Ltd. (Nasdaq: ADHD) held an IPO, Kamada Ltd. (:Nadaq: KMDA); TASE: KMDA), Medgenics Ltd. (AIM:MEDG; AMEX: MDGN), and InspireMD Ltd. (Bulletin Board: NPSR) held offerings, and Enzymotec Ltd. is planning to hold an IPO shortly.