The Israel Technology Acquisition Corporation (ITAC), which was founded six months ago, today completed a $36 million financing round on Wall Street. ITAC’s initial target was $18 million, but after the road show, it was decided to double the amount. The company is now listed for trading on the over-the-counter bulletin board, under the ticker symbol ISLTU.
US investment house Early Bird Capital led the issue, in which six million units, each consisting of one share and two share options, were offered at $6 per unit.
ITAC’s prospectus, filed at the US Securities and Exchange Commission (SEC) four months ago, states, “We believe that Israel represents an attractive environment for a target business for several reasons including, among others Israel’s large population of scientists and technicians compared to other countries, favorable tax incentives and government funding plans offered to Israeli companies, and Israel’s reputation as being one of the most attractive centers for technology innovation outside of the United States.”
The prospectus adds, “According to the Israel Venture Capital Research Center, since 1999, $9 billion in venture capital was invested in Israel’s high-tech industry… there should be a greater number of prospective target businesses searching for liquidity event. We also believe… a transaction with us (is) an attractive alternative exit strategy.”
ITAC’s chairman and CEO is Israel Frieder, former president of Kardan Communications, former president of Tadiran Telecommunications, and former president of an ECI Telecom subsidiary in the US. Former CIBC banking division manager Glen Shear is CFO, secretary, and director, and former Poalim Ventures VP Dael Schnider is VP and director. Another investor in the company, who is also a director, is former Smith Barney research division manager Victor Halpert.
Published by Globes [online] - www.globes.co.il - on July 20, 2005