Sources inform ''Globes'' that unmanned aerial vehicle (UAV) maker Innocon Ltd. is the company that stock market shell Financial Force Ltd. (TASE: FNFR-M) is in talks with on a reverse merger.
Last week, Financial Force (formerly Shrem Fudim Kelner Technologies Ltd.), controlled by Yedidia Shimonov, gave a presentation, in which it disclosed details about a UAV company with which it was in talks on a reverse merger.
Innocon CEO Michael Armon confirmed the report, telling "Globes", "We're in talks with them on this process." The Holon-based company has 15 employees.
Innocon was founded in 2001 by Ziv Nave and his father, Zvika Nave, who previously founded UAV maker Aeronautics Defense Systems Ltd. They each own 34% of Innocon. In contrast to other small UAV makers, Innocon also makes the ground control stations and subcontracts the avionics to a Thai company.
Innocon has developed a range of light UAVs, called the Falcon, which it mostly sells to Peru, Thailand, and African countries. Its turnover is a few million dollars a year, which are reportedly enough for it to break even.
Innocon wants to list on the TASE to raise capital, which will give it the wherewithal to enter new markets.
In late 2009, Armon told "Globes" that Innocon wanted to raise $2 million from a strategic partner in order to strengthen its marketing operations, with the goal of reaching $30 million in sales within three years. This scenario did not materialize, and it ultimately raised $1 million from IMC Microwave Industries Ltd. for a 20% stake at a reduced valuation. Financial Force said in its presentation that it valued Innocon at $20 million four times the company value in the IMC deal.
Published by Globes [online], Israel business news - www.globes-online.com - on September 24, 2013
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