Medigus Announces $8 Million Private Placement to OrbiMed

Mar 13, 2013, 13:24 ET from Medigus Ltd

OMER, Israel, March 13, 2013 /PRNewswire/ --

Medigus Ltd. (TASE:MDGS), a leading medical device company dedicated to the development of innovative endoscopic procedures and technologies, announced today the closing of a private equity placement of $8 million to OrbiMed Israel Partners Limited Partnership, an affiliate of OrbiMed Advisors LLC, a leading healthcare investment firm. OrbiMed has been issued 39.9 million ordinary shares of Medigus, which account for 30.7% of Medigus' shares.


Upon the closing of the investment, Dr. Nissim Darvish, Senior Managing Director at OrbiMed Israel, was appointed chairman of the board of directors of Medigus. In addition, Anat Naschitz and Erez Chimovits, both Managing Directors at OrbiMed Israel, and Chris Rowland joined the board.

"We are proud to welcome OrbiMed as our largest shareholder, and are grateful for their confidence in our company and for their vision," said Medigus' CEO Dr. Elazar Sonnenschein. "At the critical juncture where we stand, namely the transition from R&D operations to the commercial marketing of our systems in several markets worldwide, the great expertise and financial liquidity offered by OrbiMed will help the company maximize the commercial potential of our SRS™ innovative endoscopy system for the treatment of Gastroesophageal Reflux Disease (GERD) in the US, Europe and East Asia."

"We are excited about Medigus and look forward to working together towards commercial success," said Dr.Nissim Darvish and Ms. Naschitz. "Medigus is well positioned to become a leader in minimally invasive surgery, due to its innovative technology, high quality standards and talented personnel. The company offers an appealing combination of market-ready products and a broad pipeline."

About Medigus Ltd.

Medigus (TASE: MDGS) is a medical device company headquartered in Omer, Israel, specializing in developing innovative endoscopic procedures and devices. Medigus is a pioneer developer of a unique proprietary endoscopic device for the treatment of GERD, one of the most common chronic diseases in the western world. In addition, Medigus has developed the world's smallest camera for endoscopic use as well as for other medical and industrial applications.

Based on its proprietary technologies, Medigus designs and manufactures endoscopy systems for partner companies, including major players in the medical device industry. Medigus has an advanced technology platform that includes all necessary elements for performing a wide range of endoscopic procedures. The platform includes multiple rigid, semi-flexible and flexible video endoscopes, as well as respective endoscopy suites.

About OrbiMed Advisors LLC

OrbiMed is a leading investment firm dedicated exclusively to the healthcare sector, with approximately $6 billion in assets under management. OrbiMed invests across the spectrum of healthcare companies worldwide, from venture capital start-ups to large multinational companies. OrbiMed manages a series of private equity funds, public equity funds, royalty funds and other investment vehicles.

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SOURCE Medigus Ltd