G Medical plunges on the first day on the Nasdaq stock exchange

G Medical Innovations Holdings Ltd. has completed. (Nasdaq: GMVD), which deals in mobile diagnostics, was offered on the Nasdaq. The Israeli company, headed by Yaakov Geva, raised $15 million with a subsequent valuation of the funds at $65 million. On the first day of trading, the stock price fell by 30%, which reduced the market value of the company to $45 million. This was the company’s second attempt at a Nasdaq float, after the first failed attempt last year. The underwriter was E.F. Hutton, of the Benchmark Group. The amount raised was small, the valuation was lower than expected, the stock price fell sharply, but at least G Medical’s offer was freed from the situation “among stock markets” it was. G Medical was listed on the Australian Stock Exchange in 2017, but was delisted in 2020, mainly because it sought to raise funds at a much higher valuation, and there were concerns that the valuation in Australia would lead to a lower valuation on Nasdaq. In 2020, G Medical sought to raise $30 million on the Nasdaq at a post-money valuation of $360 million, 13 times its market value in Australia. This bid failed, and G Medical found itself without a stock exchange, without a source of capital, and current investments in the company in limbo, and illiquid. The company can now go ahead as a listed company, and to start on its first trading day, some of its investors were quick to take advantage of the opportunity to liquidate their holdings once they presented themselves. G Medical was founded by Geva in 2014. The company has developed a mobile application to monitor vital signs such as temperature, pulse and oxygen saturation in the blood. In 2020, it won approval from the US Food and Drug Administration (FDA) to monitor vital signs in people with Covid-19. The company owns two other Food and Drug Administration-approved products, as well as insurance coverage for telediagnostics and telemedicine. In 2020, G Medical generated $4.9 million in revenue, down from $5.5 million in 2019, before revenue was trending upward. The company reduced its losses in 2020 to $12 million from $15.5 million in 2019. Geva previously founded and operates LifeWatch, which was launched in Zurich. In 2015, he sold his stake in LifeWatch, which specializes in remote monitoring of heart patients and people with sleep disorders, for more than NIS 100 million, after a control battle in which he was fired from the management of the company he founded. Published by Globes, Israel business news – en.globes.co.il – on June 27, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021