Industry Trend Analysis - Microbot Will Use StemCells For Market Access - 29 AUG 2016

BMI View: Microbot Medical ' s merger with StemCells will allow the former to gain quick access to US capital markets. This will , in turn, enable Microbot to raise funds to support the clinical trials of its micro-robotic assisted medical technologies. While the transaction does offer StemCells a lifeline after multiple failed trials with its stem cell product, it is unlikely that this technology will be pursued after the merger is completed.

StemCells and Microbot Medical have entered a definitive merger agreement, with plans to pursue the development of robotics based medical devices for the treatment of cerebrospinal fluid and gastrointestinal disorders, as well as other conditions. The board of directors of each company has unanimously approved the terms of the merger agreement and has recommended that its shareholders approve the transaction. Completion of the merger is subject to approval of the StemCells and Microbot shareholders and certain regulatory approvals and customary conditions. In addition, in order to satisfy certain closing conditions for the merger, StemCells will be negotiating reductions in its outstanding balances with creditors.

StemCells Fail ure To Deliver Viable Products

StemCells Underperforms On Poor Trial Results
Normalised Equity Perfomance StemCells/S&P 500 Health Care Index, 2015-2016
Source: Bloomberg

This article is part of our Corporate Financing week coverage. To access this article subscribe now or sign up for free trial