Elbit Imaging Ltd. Announces US$19,829,643 Investment in its Subsidiary InSightec Ltd., in an Internal Round of Financing
The investment is in the form of allotment and purchase of Series APreferred convertible shares of InSightec, which are convertible toInSightec's ordinary shares subject to the fulfillment of certain conditionsstipulated in the agreement. EUN's share in this round of investment totals$19,829,643. The investors have been granted certain preferential rightsattached to the Series A Preferred Shares of InSightec under the articles ofassociation of InSightec, as amended, and certain additional rights under asecurityholders agreement that was executed by and among InSightec and themajor investors, as stipulated in the said agreement.
Following the completion of this latest round of investment, the fullydiluted ownership of EUN and Elbit Ultrasound Ltd. in InSightec will beapproximately 53%.
InSightec reported that the proceeds of the investment would be applied toexpand its research and development efforts, for marketing and salesactivities, and for general corporate purposes.
Mr. Shimon Yitzhaki, President of the Company, said, "FollowingInSightec's receipt of the European CE approval for pain palliation of bonemetastases based on clinical results demonstrating that this technology hasthe potential to become an important treatment alternative for this patientpopulation, and the receipt of the FDA IDE approval for starting a phase IIIclinical trial in the US for the treatment of bone metastases, InSightec hasdecided to increase and accelerate its R&D efforts towards the simultaneousdevelopment of the InSightec's technologies which are necessary for theexpansion into new oncology areas such as: bone metastases, prostate cancer,breast cancer, liver tumors and brain tumors, in order to receive FDAapprovals for those applications and treatments within a shorter period.Meeting this task shall enable InSightec to speed up the bringing of itsproducts into the market for the benefit of the potential patients and thecancer defeat straggle."
About Elbit Imaging Ltd.
Elbit Imaging Ltd. ("EI") is a subsidiary of Europe Israel (M.M.S.) Ltd.EI's activities are divided into the following principal fields: (i)Initiation, construction, operation, management and sale of shopping andentertainment centers in Israel, Central and Eastern Europe and India; (ii)Hotels ownership, primarily in major European cities, as well as operation,management and sale of same through its subsidiary, Elscint Ltd.; (iii)Investments in the research and development, production and marketing ofmagnetic resonance imaging guided focused ultrasound treatment equipment,through its subsidiary, InSightec Ltd.; and (iv) Other activities consistingof the distribution and marketing of women's fashion and accessories throughour wholly-owned Israeli subsidiary, Elbit Trade & Retail Ltd., andventure-capital investments.
InSightec Ltd. is a privately held company owned by EI's wholly ownedsubsidiaries EUN and Elbit Ultrasound Ltd., General Electric, MediTechAdvisors, LLC and employees. It was founded in 1999 to develop thebreakthrough MR guided Focused Ultrasound technology and transform it into thenext generation operating room. Headquartered near Haifa, Israel, the comp
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