Micronet (TASE: MCRNT) has notified the Tel Aviv Stock Exchange (TASE) that it will merge into generative AI company Jeen.ai. Previously Micronet developed and produced computer systems and terminals for managing employees in the field. When the merger is completed, Jeen.ai shareholders will hold a majority 52% stake in the merged company and AI will become the company's main activity. At t6his stage the agreement signed is non-binding.
As a condition for completing the merger, Micronet will raise NIS 7.4-11 million at a price of not less than NIS 2.35 per share (the company is currently trading at NIS 1.90 per share, giving a market cap of NIS 18.6 million). Another condition contingent on completing the deal is the receipt of a valuation for Jeen.ai of no less than NIS 35 million.
Jeen.ai has developed a secure platform for rapidly installing generative AI in large enterprises. The company began as the data division of One Software Technologies (TASE: ONE), which according to reports holds an option to buy 25% of the shares. Jeen.ai's customers include Isracard, Delek, and Amdocs.
Jeen.ai has 25 employees and its CEO is cofounder Oded Tahori. He said, "Organizations all over the world want to take advantage of generative AI's potential, but this requires expertise and full focus. We founded Jeen.ai with the aim of focusing on developing an excellent product, which is already integrated and helps organizations in Israel and around the world benefit from generative AI technologies. At this stage, the company is breaking even and growing organically and rapidly."
Published by Globes, Israel business news - en.globes.co.il - on September 17, 2024.
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