Start-up InkSure Technologies, a Delaware corporation that develops ink-based document and brand authentication systems, announced today that it recently closed a $6.7 million equity financing round led by leading merchant bank Commonwealth Associates.
InkSure Technologies develops advanced authentication solutions for printed documents and brands. Its proprietary technology enables the embedding of a highly effective anti-counterfeiting "signature" within all ink-based products and labels, enabling authorities to easily verify the authenticity of documents and products. InkSure's principal executive office is in Tenafly, NJ with research and development facilities at the Rehovot Science Park.
In addition, the company has entered into an agreement and plan of reverse merger with Lil Marc, Inc. (OTC Bulletin Board: LILM.OB), a publicly-traded Nevada corporation controlled by an affiliate of Commonwealth Associates. Lil Marc currently has no operations and its shares are traded on the NASD OTC Bulletin Board under the trading symbol "LILM.OB."
InkSure's current stockholders will acquire approximately 90% of Lil Marc's stock, as determined on a fully-diluted basis. Lil Marc will change its name to InkSure Technologies Inc. and contribute its cash resources to InkSure's ongoing operations. All of InkSure's current business activities will be carried out by the merged entity. InkSure's board of directors and management team, including its chairman, Elie Housman, its CEO, Yaron Meerfeld, and its CFO, Eyal Bigon, will become responsible for the company's strategy and operations. Pending approval of Lil Marc's shareholders, the merger is expected to be completed by the end of October.
In parallel, InkSure recently recruited R. James Assaf, formerly the director of business development, mergers and acquisitions of Sensormatic Electronics Corporation, as CEO of its North American operations.
Commenting on the news, Meerfeld said, "Our ability to complete this major round despite today's difficult climate proves the enormous potential of our technology, products, and markets. Even before the transaction, we had begun to build exciting sales momentum and profits. As a well-financed and publicly traded company, we now have the resources to execute a global sales and marketing strategy that will enable us to establish leadership of the $25 billion authentication market and to create significant value for our stockholders".
Estimates of the direct revenue losses accountable to counterfeiting and diversion range from $300 billion to $1 trillion per year. The Security Solution Consultancy reported that annual investments in anti-counterfeiting systems totaled approximately $25 billion.
Published by Globes [online] - www.globes.co.il - on 15 October 2002