Link to Hebrew immediate report
Following the company’s immediate report from 04/14/11 (Ref: 2011-01-122100) regarding Sanofi’s investment in one of its portfolio companies, KAHR Medical Ltd. (hereinafter - "Investment Agreement" and "KAHR“), Hadasit Bio holdings Ltd. is pleased to announce that KAHR signed an investment agreement with a new investor, which will join the Investment Agreement (hereinafter "New investor"). The New Investor is Mr. Thomas Eldred, who to the best of KAHR’s knowledge is the owner the Swedish company Recipharm - one of the largest pharmaceutical manufacturing contractors in Europe.
According to the agreement KAHR will raise over 10,000,000 NIS, at a pre money value of 43 million NIS. The New Investor will invest in KAHR about 8,000,000 NIS and will hold about 15% ownership In KAHR. In addition, Sanofi will maintain its relative share in KAHR (20%) through an additional investment of about 2,000,000 NIS. Hadasit Bio - Holdings will invest about 400,000 NIS and its holdings in KAHR following this round of investment will be approximately 55%. The investors will receive preferred A shares
According to the current investment agreement the board of KAHR will include no more than eight members. Any shareholder with 12% holdings in KAHR may appoint one (1) board member, in addition to other agreements made between the parties concerning the composition of the board and the identity of members of the board of KAHR.
The company will handle this transaction in accordance with IAS 27 as a transaction with the owners of non-controlling interests without losing control.
The current investment will be used for continued development of KAHR’s products, and especially advancing the lead products towards clinical trials. KHAR 102 (one of two lead products developed by KAHR) is scheduled to initiate a clinical trial around the first quarter of 2013. The additional funding will enable KAHR to speed up the development path of its products including the additional product (KAHR 101) so that its clinical trial may commence in 2013.
The above includes forward looking statements relying on, inter alia, that all the approvals required for KAHR to enter the clinical trials, are received and that all tests and all preliminary requirements for entry into clinical trials are completed successfully.
KAHR believes that this transaction with another strategic partner (in addition to Sanofi) together with the additional funds can enable accelerated progress in the development and production process of its leading products, to enter clinical trials.
Hadasit Bio - Holdings Ltd.