Company Developing Anti-Depression Magnetic Stimulation Headset Aims to Raise $8 Million

Jerusalem-headquartered, medical device company Brainsway is in advanced talks with institutional investors for a private placement investment valued at around $8 million, according to a Tel Aviv Stock Exchange filing published Monday.

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Calcalist first reported the negotiations Sunday, citing sources.

For the private placement, Brainsway partnered with an investor group led by Israel-based Phoenix Insurance Company Ltd., according to people familiar who spoke on conditions of anonymity. The shares will be priced at $4.25 each, these people said.

Established in 2003, Brainsway develops non-invasive, helmet-like medical devices that use magnetic stimulation to treat brain disorders. The company's devices are cleared by the U.S. Food and Drug Administration for the treatment of depression, and by the European Union for various disorders including stroke rehabilitation, PTSD, Alzheimer's disease and smoking cessation. In January, the company switched to leasing instead of selling its devices.

Brainsway published its third-quarter financial reports two weeks ago, reporting losses of around $1.8 despite a 27% increase in revenues from the second quarter of 2017. The revenues for the third quarter amounted to around $3 million.