BrainsGate, Ltd. announced that it expects to receive $26 million in funding from Elron Electronic Industries Ltd.
January 24, 2015
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BrainsGate, Ltd. announced that it will receive $26 million in a round of funding on January 25, 2015. The transaction will be led by leading global healthcare products company and will also include participation from other existing investors including Elron Electronic Industries Ltd., Boston Scientific or Johnson & Johnson, and Israel Makov, a private investor. The company has raised $70 million in funding till date. The transaction will be raised at a pre money valuation of $70 million. The transaction will take place in two tranches. Elron Electronic Industries Ltd. will invest $3.5 million in first tranche and $4.5 million in second tranche and its share, which is 30% as of now, will not change after the closing of the transaction. The closing of second tranche is subject to certain conditions such as interim analysis to be conducted by the Data and Safety Monitoring Board after follow up data of 600 patients participating in the company's clinical trial and the decision by majority of company investors.
On the same day, the company received $11 million in first tranche of the transaction.
Elron Electronic Industries Ltd. is an operational holding company that focuses on building and enhancing technology companies, mainly in the field of medical devices. Its group companies include companies at different stages of development and business maturation, operating in various technology fields, such as medical device and other fields. It is involved in the management of its group companies by means of membership and providing assistance to management. It operates in the Holdings and Corporate Operations segment. It is engaged in matters of policy guidance, strategic planning, marketing, selecting and manning senior management positions, determining the business plan, approving investments and budgets, development and operational guidance, assistance in creating strategic partnerships, and the overall ongoing monitoring of its group companies' performance. Its main group companies include BrainsGate Ltd, Pocared Diagnostics Ltd. and RDC Rafael Development Corporation Ltd.