G Medical (Facebook)
Israel’s G Medical Innovations medtech startup held its initial public offering IPO on the NASDAQ. While Startup Nation seems to have had an unbroken string of successful exits recently, even during the worldwide Covid-19 pandemic, G Medical has hit a bump on the road. The company’s stock slid 30% on its first day of trading. And this was take two for G Medical’s IPO after a failed attempt last year.
Another Israeli company that recently had IPO problems is SentinelOne. The Israeli cybersecurity firm greatly lowered its expectations for the company’s upcoming initial public offering. The New York IPO had expected to leave the company with a $10 billion valuation. But in papers filed today, on Monday, SentinelOne has dropped the anticipated valuation from their NYSE IPO to only $7 billion. But even this would leave it with a 700% increase in value over one year ago.
But here we are talking about a much smaller company which did not have trouble until after the IPO was held.
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Founded in 2014, G Medical Innovations (ASX: GMV) is a next-generation mobile health company which operates in the USA, Europe, China, the Middle East and Australia. The Company has established a new and advanced manufacturing site in China, Guangdong, and operates a wholly owned subsidiary, G Medical Diagnostic Services, Inc. that provides arrhythmia monitoring and diagnostics in the USA.
“We believe in transforming personal healthcare by developing innovative mobile-health solutions that provide comprehensive, medical-grade diagnostics using remote and personalized platforms.”
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The company boasts that the G Medical PRIZMA offering is an innovative FDA cleared/CE approved medical smartphone case that transforms any smartphone into a medical monitoring and diagnostic device. With PRIZMA, users can independently manage their health by continuously measuring, monitoring and sharing vital signs with caregivers and loved ones.
Last week G Medical announced that it would offer 3,000,000 units, each consisting of one ordinary share and one warrant to purchase one ordinary share, at a combined public offering price of $5 per unit for the firm’s IPO. The company expected that they would generate gross proceeds of approximately $15 million, prior to deducting underwriting discounts, commissions, and other offering expenses and excluding any exercise of the underwriters’ option to purchase any additional securities as described herein. In addition, G Medical granted the underwriters a 45-day option to purchase up to an additional 450,000 units at the public offering price less the underwriting discounts and commissions.
G Medical did, in fact, raise the expected $15 million and did, at one point, hit a valuation of $65 million. So the IPO was successful, at least at first.
