Argoquest owner, chairman and CEO Jason Barzilay has kept his promise to invest again in Israel's venture capital industry. "I intend to come to Israel and personally invest a lot more money there," he told "Globes" a few weeks ago. Meanwhile, he is taking small steps.
The financial report of TechnoPlus Ventures (TASE:TNPV), which has a market cap of only $2 million, states that Argoquest Holdings last month bought the shares in management company that controls TechnoPlus from its chairman and managing partner Itamar Patishi and Shrem Fudim Kelner Technologies (TASE:SFKT), as well as Patishi's 17% stake in TechnoPlus itself.
Barzilay will now face a difficult task at TechnoPlus. As of the end of September 2004, TechnoPlus's NIS 65 million in outstanding credit at the two large banks is due to be repaid in January 2005.
TechnoPlus's management believes that its continued activity depends on rescheduling its debts. Argoquest was therefore authorized to negotiate with the banks to reach an arrangement for rescheduling TechnoPlus's debts and injecting capital for follow-on investments in its portfolio companies.
TechnoPlus has accumulated NIS 162 million in debts in recent years. It reported a shareholders equity deficit for the third quarter of 2004, due to a loss of NIS 8.3 million, mostly from write-offs and losses on venture capital income realization.
TechnoPlus's auditors direct attention to its NIS 6.3 million deficit in shareholders equity, NIS 63.7 million deficit in working capital, and negative cash flow in January-September 2004. The auditors therefore question TechnoPlus's chances of survival as a going concern.
TechnoPlus's balance sheet lists NIS 54 million in venture capital investments, after a NIS 110 million write-off.
Founded by Patishi, TechnoPlus invested in over 60 high-tech ventures in the late 1990s through Technoplast Industries (LSE:TNP; TASE:TNP), which was sold last year.
In early November, Argoquest filed a $350 million lawsuit against Israel Discount Bank (TASE:DSCT) in a Los Angeles court.
Published by Globes [online] - www.globes.co.il - on November 30, 2004