Brainsway Raises $8.5 Million From Leading Israeli Investors

Phoenix Group becomes 7% shareholder

Financing strengthens Brainsway's balance sheet and provides strong support for continued growth

HACKENSACK, N.J., Dec. 12, 2017 (GLOBE NEWSWIRE) --  Brainsway Ltd. (TASE:BRIN), a leading developer of breakthrough brain disorder treatment technology, is pleased to announce that it has completed an $8.5 million equity financing as part of private stock placement. There was strong demand for the placement among leading institutional investors.  The financing was led by the Phoenix Group (Israel), which will own more than 7% in the Company.  Noked Capital and IBI Investment House, a current shareholder in Brainsway, also participated in the financing.

Yaacov Michlin, chief executive officer of Brainsway, said, "We are pleased by the investments made in Brainsway today by some of Israel's leading investors and that the Phoenix Group has become an important shareholder in our company. This is a tremendous vote of confidence in Brainsway's operations, results, clinical and business goals.  A group of esteemed entities from Israel's capital market today placed its trust in our growth strategy and our updated business model. Strengthening the Company’s capital base allows Brainsway to expand the lease and sale of the Deep TMS Systems for the treatment of Major Depression Disorder (MDD) in the US and additional markets, prepare for launching our system for the treatment of Obsessive Compulsive Disorder (OCD) in the US (subject to receipt of US Food and Drug Administration marketing permission) and other markets, to accelerate existing clinical trials, to initiate new neurological and addiction trials and to advance the development of the Company's systems. The financing also expands and diversifies our investor base and will help us maintain our global leadership as the world's most innovative TMS company."

The shares to be issued (subject to formal TASE approval) will be classified as restricted shares for a specific period of time, as is customary in private allocations in Israel.

Over the past few quarters, Brainsway succeeded in significantly increasing its order pipeline and growing its revenues. The Company posted record third quarter 2017 revenues, which were 27% higher than the second quarter of 2017, and reduced its quarterly burn rate.  As of September 30, 2017, Brainsway had cash on its balance sheet of approximately $6 million and a credit facility with Mizrahi Bank of $6 million.  The equity proceeds from this financing will provide additional cash to allow for accelerated growth.

About Brainsway

Brainsway is engaged in the research, development and marketing of a medical system for non-invasive treatment of common brain disorders. The medical system developed and manufactured by the company is based on a unique and breakthrough technology called Deep TMS, which can reach deeply and broadly into the brain and produce nerve stimulation or suppression. In the US, Brainsway is currently FDA cleared for the treatment of Major Depressive Disorder only, and has reimbursement by insurers, including both commercial and government payors, covering about 90% of the US population. The Company's systems are sold worldwide as well, with CE mark for a variety of indications.

Forward-Looking Statements

This press release contains forward-looking statements, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements.

Investor Contacts:
Hadar Levy
Chief Financial Officer

Bob Yedid
LifeSci Advisors