Israeli biotech firm Mazor Robotics (PINK: MZRTF) has entered into a private equity placement transaction with a group led by Oracle Investment Management, to the tune of up to $15 million, with a view toward gaining an American Depository Receipt program on an American stock exchange.
Mazor is a developer of robotic equipment for use in surgical procedures and related products. The deal calls for two tranches of $7.5 million each, which is divided among the group of investors.
Mazor will issue 7,053,529 common shares for 4.25 shekels each in the first tranche (at an exchange rate of 3.997 as of August 8, 2012).
In the second tranche, Mazor will offer investors non-registered warrants which can be exercised into common shares, valid for 36 months either at 6.00 shekels or the 10-day trailing daily volume-weighted average price (in shekels) – whichever is lower.
After the first tranche, Mazor will try to establish a Level 2 ADR listing on Nasdaq or NYSE, and the company will subsequently release shares and/or warrants upon issue to its investors.
If, however, the price following implementation of ADR is below 4.25 shekels, then Mazor holds the right to utilize just 50 percent of the second tranche.
The issued shares and warrant shares will convert into ADRs directly following Mazor’s implementation of the ADR program, its U.S. listing, and full exercise of the warrants.
Reuters quotes Mazor CEO Ori Hadomi:
“We welcome our new investors and are gratified they share our vision for Mazor’s future success in the robotics market.”
“Our investment partners, led by Oracle Partners, are well respected in the global healthcare markets and have a great track record of success. We believe their insight and experience in working with innovative and emerging medical device companies will significantly support Mazor’s growth strategies, particularly in the untapped U.S. market and Europe and Asia as well. In addition, the first tranche of this transaction improves our balance sheet and provides us with the roadmap and resources to list on a major U.S. stock exchange, which we believe will significantly increase our visibility with investors and expand our investor base.”