Fuel cell developer Medis Technologies Ltd. (Nasdaq: MDTL) subsidiary Medis El Ltd. has been put into receivership and is laying off all 70 employees at its Lod plant. The court accepted the request of Adv. Ofir Ronen to appoint a temporary receiver on behalf of Medis El's employees who have not been paid for the past three months in the failed hope that the company would find an investor. Medis El has fired an additional 100 employees over the past year.
Last week parent company Medis Technologies announced the resignation of chairman and CEO Jose Mejia.
Medis El has developed innovative fuel cells and its product reached the market last year just as the global economic crisis reached its peak. The company's mobile fuel cells can generate 1 watt from solar chargers and is marketed as ideal for emergency situations. Although many retail chains did buy the product, it has not been greeted enthusiastically by consumers and demand has been poor.
The company decided to begin developing a similar product which can generate between 20-25 watts for military purposes. Sources inform "Globes" that the company has been developing such a product together with security bodies in Israel but there is no more money for investment.
Medis El's sister company Mor Energy, which has also been developing the product has debts of NIS 14 million and Medis El itself owes an additional $400,000.
Medis El has more than 20 alternative energy and fuel cell patents and there reportedly several companies interested in acquiring these assets. Any such income would pass to the receiver.
Medis Technologies share fell 1.79% in early morning trading on Nasdaq to $0.11, giving a market cap of $4.93 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2009
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