Elron Announces Completion by Galil Medical Of $52 Million Financing and Acquisition of Oncura's Urology Related Cryotherapy Bus
December 10 2006 - 2:35AM
PR Newswire (US)
TEL AVIV, Israel, Dec. 10 /PRNewswire-FirstCall/ -- Elron
Electronic Industries Ltd. (NASDAQ:ELRN)(TASE:ELRN), announced
today that further to its previous announcements, Galil Medical
Ltd., ("Galil Medical"), an Elron group company, has completed a
$52 million financing led by Thomas, McNerney & Partners and
The Vertical Group and joined by Investor Growth Capital, all
leading U.S. venture capital funds. As part of the financing round,
the new investors purchased shares from certain existing
shareholders of Galil Medical, including Elron's subsidiary, RDC --
Rafael Development Corporation ("RDC"), for approximately $8
million and $4 million of existing shareholders loans were
converted into shares of Galil Medical. Following the transaction,
Elron holds directly approximately 12% and RDC holds approximately
17% of Galil Medical's outstanding shares. Elron also announced the
completion of the sale of Galil Medical's 25% interest in Oncura,
Inc. ("Oncura") to Oncura's 75% shareholder, GE Champion Services
and Galil Medical's acquisition of Oncura's urology related
cryotherapy business. Following the transaction, the cryotherapy
business is now solely owned and operated by Galil Medical. Under
US GAAP and based on a preliminary analysis, Elron estimates that
it would record a loss in the fourth quarter of 2006 of between $1
million and $3 million with regard to this transaction. Under
Israeli GAAP, Elron may be able to record a gain in the fourth
quarter of 2006 currently estimated at an amount of between $2
million and $4 million. At this stage, it is not certain that Elron
will be able to record a gain under Israeli GAAP. Commenting on the
above transactions, Doron Birger, Elron's President and Chief
Executive Officer said: "The acquisition of the urology cryotherapy
business with annual revenues in excess of $20 million and the
significant financing round completed by Galil Medical are major
stepping stones to becoming a leader in its field. These
transactions will enable expansion of Galil Medical's sales as well
as research and development and clinical programs to support
existing and new applications for Galil Medical's cryotherapy
technology." Galil Medical develops, manufactures and markets an
innovative cryotherapy platform incorporating powerful freezing
technology and proprietary needle design for minimally invasive
treatments for various clinical applications. Galil Medical's
cryotherapy systems have been used worldwide for the treatment of
prostate and kidney cancer. The company's next generation systems
are being developed for women's health conditions and liver, lung
and bone cancer. Elron Electronic Industries Ltd. (TASE &
Nasdaq: ELRN), a member of the IDB Holding group, is a leading
Israel-based technology holding company directly involved in the
long-term performance of its group companies. Elron identifies
potential technologies, creates strategic partnerships, secures
financing, and recruits highly qualified management teams. Elron's
group companies currently comprise a diverse range of
publicly-traded and privately held companies primarily in the
fields of medical devices, information & communications
technology, clean technology and semiconductors. For further
information, please visit http://www.elron.com/ Company Contact:
Rinat Remler, Vice President & CFO Elron Electronic Industries
Ltd. Tel. 972-3-6075555 (Any statements in this press release that
may be considered forward- looking statements are subject to risks
and uncertainties that could cause actual results to differ
materially. Actual results may differ from such forward-looking
statements due to the risk factors discussed in periodic reports
filed by the Company with the Securities and Exchange Commission,
which the Company urges investors to consider). DATASOURCE: Elron
Electronic Industries Ltd. CONTACT: Rinat Remler, Vice President
& CFO of Elron Electronic Industries Ltd., +972-3-6075555, Web
site: http://www.elron.com/
Copyright