It appears that the management of Elco Holdings finds the high tech field particularly attractive. In the past month, Elco has gradually strengthened its holdings in the high tech field, and today it was reported that the company invested another $650,000 in VCON Telecommunications, in which it had already invested at the end of September.
The current investment is part of VCON’s current private placement, in which the Polaris venture capital fund and Oppenheimer’s high tech fund are participating.
Elco also announced that that it plans to convert its recent loan to VCON into shares. The loan amounted to $1.35 million and the conversion of this sum into shares, along with the additional investment, indicates Elco believes VCON will be a success.
Following the two-stage investment in VCON, Elco Holdings, controlled by Gershon Salkind, will hold a 5-10% share in VCON at a total investment of $2 million.
VCON is based in Herzlia and currently employs more than 100. The company has an impressive growth rate and annual revenues estimated at $10-13 million. Reportedly, the company is making the transition from loss to profit.
VCON recently signed a marketing agreement with Japanese Nippon Systems Ware.
Reportedly, although VCON is already posting significant sales volume, company management is not discussing a public offering either in Israel or abroad. According to estimates, VCON plans to continue to establish its business activity in a private framework, and only examine the issue of a public offering in six months to a year.