Bio-Light: Obecure Raises Capital Based on $20 Million Valuation

Lior Gottlieb, BizPortal, March 15, 2006

The company Obecure, from the Bio-Light group, has signed an agreement in principle raising capital based on a valuation of $20 million. This is 55 percent higher than the market value of its parent company, Bio-Light, which is being traded on the Tel Aviv Stock Exchange at a value of $12.7 million.

Bio-Light holds three additional biotechnology companies, and possesses NIS 20 million in cash, which was raised through its stock issue last December.

Obecure is expected to raise the money from a private investment firm in the United states with the sum raised is between $820,000 and $1.5 million, giving the investors a stake of between 4-7 percent of Obecure.

Obecure is expected to begin Phase 2 clinical trials in coming months in the U.S. This takes place after the company was not required to conduct Phase 1 trials because the drug for weight management it is developing has been on the market for decades, has been taken by more than 60 million people as a treatment for vertigo, and has been proven safe.