M-commerce start-up Cellenium has suspended its service operations in Israel, and will now focus on selling its technology. Sources inform “Globes” that some of the company’s 20 employees have not been paid their June salaries or received compensation owed them. The company also owes various suppliers. At its peak, Cellenium had 50 employees.
Cellenium is fully owned by CEO Shaul Shalev, after Elron Electronic Industries (Nasdaq: ELRN; TASE:ELRN) transferred its 50% share in the company to him in November 2002, following rumors that the company was about to close. Elron reportedly urged that Cellenium be closed at the time, while Shalev wanted to save it.
Sources at Cellenium told “Globes” in November that its main customers, the cellular companies, were unwilling to invest the large sums of additional capital necessary to educate the market to use m-commerce. This refusal meant that Cellenium’s closure was only a matter of time.
Cellenium maintained offices in Israel, the US, and Singapore. Shalev told “Globes” today that only a few employees would stay at the Israeli office, while the others “will receive their June salaries and compensation in a few days.” As for the debts to suppliers, he said, “The company’s total accounts receivable equals its debts to suppliers.” He said the company’s US operations “are on a very low flame. We had business more related to services promotion, which has been cut back to the sale of technology only.”
Published by Globes [online] - www.globes.co.il - on July 10, 2003