Advanced Technology Acquisition Corporation (ATAC) filed a prospectus with the US Securities and Exchange Commission (SEC) on Friday to raise $200 million through an offering of 25 million units at $8 per unit. Each unit will comprise one ordinary share and one warrant exercisable for one ordinary share at $6 per share. As with other blank-check companies, if ATAC’s IPO goes ahead as planned, it will register its shares for trading on the Over the Counter Bulletin Board.
Blank-check companies are stock market shells with no activity that raise capital in order to merge with private companies, usually start-ups, which thus enter the stock market through the back door. Usually when the reverse merger takes place, the stock market shell takes the name of the other company, which operates as a public entity for all intents and purposes.
In its prospectus, ATAC states that it is registered in Delaware, and wants to merge with an Israeli technology company, or a non-Israeli company with activity and/or office in Israel or plans to set up such activity after the merger. These activities include R&D, production, or headquarters. ATAC’s offices are on Ahimeir St. in Ramat Gan.
ATAC’s board of directors is its strong point. Its chairman is Moshe Bar-Niv, 58, and the CEO is Leora Lev. Bar-Niv and Lev are both partners at Ascend Technology Partners, and each owns 28% of ATAC.
ATAC’s three other directors are also well known in the Israeli economy: Avigdor Kaplan, the CEO of Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) for the past decade; Elisha Yanay, general manager of Motorola Israel and a VP of Motorola Inc. (NYSE:MOT); and Dr. Shuki Gleitman, managing partner at Platinum Neurone Ventures, and formerly CEO of Shrem Fudim Kelner Technologies Ltd. (TASE:SFKT), CEO of Ampal - American Israel Corporation (Nasdaq: AMPL) and Chief Scientist. Gleitman also owns 28% of ATAC and Yanay and Kaplan own less than 1% each.
ATAC CFO Josef Neuhaus signed off on the merger of Axis Mobile Ltd. (AIM:AXIS) with a stock market shell on London’s Alternative Investment Market (AIM), among other things.
The ability of blank-check companies like ATAC to raise capital depends on its officers and directors. Founders of these companies therefore make sure to recruit directors with a proven economic, political or military reputation. Blank-check company Vector Intersect Security Acquisition Corp. hired former prime minister and IDF chief of staff Lt.-Gen. Ehud Barak as a director in May 2006 for this purpose. Vector wants to raise $59.25 million and acquire a homeland security or military industry company. Barak has been a partner of SCP Partners since 2003.
Published by Globes [online], Israel business news - www.globes.co.il - on October 8, 2006
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