Dec 11, 2017 – The company awaits a response from the FDA to an application to approve its product for use in treating obsessive compulsive disorder.
Brainsway Ltd. (TASE:BRIN) has raised NIS 30 million ($8.5 million) from Israeli financial institutions, including The Phoenix Holdings Ltd (TASE:PHOE1;PHOE5) and IBI Investment House Ltd. (TASE:IBI), which already has an 8% stake in Brainsway. The round was held at a price per share of NIS 15.5, representing a discount of 4.4% on the market price. It was led by Discount Underwriting and Cybele Capital Markets.
Brainsway, managed by CEO Yaacov Michlin, develops and markets magnetic stimulation helmets for treatment of neurological and psychiatric diseases. The company has a NIS 245 million market cap, and had $6 million in cash as of the end of the third quarter, while its burn rate is $3 million per quarter.
Brainsway Ltd. announced in November the Company’s financial results for the third quarter ended September 30, 2017. The Company’s revenues for the third quarter of 2017 increased by 27% over the revenues in the second quarter of 2017. Additionally, based on minimum leasing fees (before usage fees) associated with current binding contractual agreements, the Company increased its total minimum revenue projection by 21% to a record of $23 million compared to $19.1 million at the end of second quarter 2017, and $15.0 million at the end of the first quarter. As of January 2017, Brainsway has adopted a new business model primarily focused on leasing its Deep Transmagnetic Cranial Stimulation (TMS) systems to customers.
Lease-related revenues comprised approximately 63% of total revenues over the first nine months of 2017, as compared to 47% of total revenues for full-year 2016.