Israel's Brainsway is dialing back its IPO expectations. It has filed more documents with the SEC saying it will offer about 1.8 million shares for between $10 and $12 per share. The filing comes less than a month after the company said it was looking to raise $30 million on NASDAQ.
The company estimates it will receive net proceeds after deducting the underwriting discounts and commissions and the estimated offering expenses of $17.4 million, based on an assumed public offering price of $11.00 per share. It expects to use the net proceeds for manufacturing and commercializing its product, ongoing and future clinical trials, R&D, working capital and general corporate purposes, according to its filing.
Brainsway is developing the deep transcranial magnetic stimluation systems for noninvasive treatment of a wide range of neurological and psychopathological disorders. Potential applications include addiction, schizophrenia, obesity, eating disorders, Parkinson's disease, Alzheimer's disease, autism and post-traumatic stress disorder, according to the company's website. Its initial focus is the treatment of major depression.
As Dow Jones notes, Brainsway generates little revenue and is unprofitable--like most development-stage medical companies. Last year, its loss narrowed from a year earlier. It had $86,000 in revenue last year.