Proceeds include a unilateral option for the investment of 6 million ILS by the company's controlling shareholders and additional investors, including company Chair, Jonathan Kolber, Dr. Dadi Segal, CEO, and Ran Nussbaum.
TEL AVIV, Israel, April 2, 2020 /PRNewswire/ -- Pharmaceutical company Panaxia Labs Israel Ltd. (Panaxia Israel, TASE: PNAX), the largest manufacturer of medical cannabis products in Israel, announced the successful completion of a 17 Million ILS private placement of common stock and warrants to Israeli Institutional Investors: the provident funds, mutual funds, and portfolio management entities of Mor Investment House and Noked Capital Hedge Fund. In connection with the offering, the Company issued 6,319,703 shares of the Company's common stock at a purchase price per share of 2.69 ILS, and warrants to purchase an additional 5,055,762 shares of common stock at an exercise price of 4.00 ILS per share.
In addition, the company has been granted a unilateral option from controlling shareholders and investors, for an additional investment of a minimum of 6 million ILS of which will be returned to common stock and warrants under the same identical terms. Among the investors: Panaxia Israel's Chairman, Mr. Jonathan Kolber, CEO Dr. Dadi Segal, General Manager Assi Rotbart, LL.B., CTO Dr. Eran Goldberg, Mr. Ran Nussbaum, and additional Israeli and foreign investors. Exercise of the option is subjected to, among other conditions, the approval of Panaxia Israel shareholders' meeting.
Total gross proceeds raised, including the exercise of the option by the company, are 23 million ILS. The company intends to use the proceeds from the financing to advance the execution of its strategic plans, especially the export, the marketing, and the sales in Europe. Ori Mor of Mor-Langermann, investment banking consultancy firm, served as financial advisor in the private placement. The investment agreements are subject to general conditions required in such agreements.
Dr. Dadi Segal, the Panaxia CEO, responded: "The successful completion of the private placement to leading Israeli Institutional Investors as Mor Investment house and Noked Capital, marks an outstanding achievement against the backdrop of the unfolding COVID-19 crisis and the challenging financial market conditions. We appreciate the confidence expressed by our new and existing shareholders in Panaxia's potential to become a leading player in the European market of pharmaceutical cannabis. The proceeds raised will support our plans of penetrating and expanding into the European market in the current year as we continue to grow our business in Israel."
Panaxia Israel (www.panaxia.co.il) is part of the pharmaceutical group of the Segal family, operating for over four decades, and manufacturing over 600 different pharmaceutical products, which it distributes in over 30 countries. Panaxia was founded by Dr. Dadi Segal, Dr.Eran Goldberg and Assi Rotbart, LL.b, and constitutes the Group's cannabis division. In addition, the sister-division of North America manufactures over 60 pharmaceutical products based on medical cannabis, including sublingual tablets, oral tablets, oils, inhalers, and more, intended to treat conditions such as post-traumatic stress, cancer, chronic pains, epilepsy, anorexia, burns, and many other medical conditions. Panaxia employs around 90 employees and all clinical experiments are conducted by the company.
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SOURCE Panaxia Israel