Israeli robotic solar panel cleaning company Ecoppia (TASE: ECPA) has sold its business to CEO Eran Dgani for just NIS 18 million. The company held its IPO on the Tel Aviv Stock Exchange (TASE) in November 2020, when it raised NIS 282 million post-money valuation of NIS 1.3 billion and shortly afterwards its market cap rose to NIS 1.5 billion. The company's share price has fallen 20% since the start of the week and 90% since its IPO.
The 'bubble' pricing of 2020 and 2021 was based on dreams of Ecoppia conquering a large market that have faded. Dgani is buying Ecoppia's development, maintenance and marketing rights for the robotic system. What is unusual about the deal is that Ecoppia has cash of NIS 178 million in its coffers while its market cap is NIS 130 million.
In addition to the payment for the business, Dgani's private company will also give the public company a percentage of future revenue. If the activity holds another IPO, the public company will have an option to purchase shares at a discount. Ecoppia said that annual revenue of the sold activity was about NIS 11.2 million, NIS 14.1 million and NIS 19.1 million in the years 2021, 2022 and 2023 respectively. Total cumulative loss since its founding is nearly NIS 280 million.
Published by Globes, Israel business news - en.globes.co.il - on March 11, 2024.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.