TechnoPlus Ventures Ltd. (TASE:TNPV) has signed an memorandum of understanding (MOU) to invest $5 million in Metal-Tech Ltd. (AIM:MTT), a producer and recycler of rare earth metals such as Tungsten and Molybdenum, in exchange for 27.5-35% of the company. The companies plan to reach a final agreement within 120 days.
Metal-Tech will use the proceeds, if they materialize, to increase its working capital. Last month, when it published its interim results, it said that it was seeking to cut costs, and might delist from London’s Alternative Investment Market (AIM) for this purpose.
Until 2007, Technoplus operated as a venture capital fund and currently has ten companies in its portfolio. It currently seeks to invest in growing small and mid-sized companies that are seeking to raise funds in support of growth, and has made two such investments to date: LED illumination developer D-LED Illumination Technologies Ltd. and digital scales manufacturer Shekel Electronic Scales Ltd.
Technoplus's share price rose 15.4% by early afternoon to NIS 0.015, giving a market cap of NIS 11 million, and Metal-Tech's share price fell 30.8% by midday in London to ₤0.075, giving a market cap of ₤2 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 4, 2011
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