The English grammar correction software company has merged into the shell of Eldan Tech.
English grammar correction software company WhiteSmoke today completed its reverse merger into the stock market shell of Eldan Tech Ltd. (TASE:ELDN) during a strong trading day for the company. Eldan Tech's share price rose 12% to NIS 0.12. WhiteSmoke joins the Tel Aviv Stock Exchange after its failed attempt at an IPO on Nasdaq last year, which left the company short of funds.
The merger has meant that trading in Eldan Tech has been volatile recently with two digit percentage daily movements.
As part of the merger, Eldan Tech has allocated 85% of its capital to WhiteSmoke shareholders and they will become the controlling shareholders instead of Roni Peled and Eliahu Zamir. The largest shareholder in WhiteSmoke is the Evolution venture capital fund and other shareholders include high tech serial entrepreneur and Mirabilis founder Yair Goldfinger and real estate magnate Igal Ahouvi. Ahead of the deal, Whitesmoke's company value was estimated at $21 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 17, 2013
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