Petah Tikva-based technology company SaverOne (TASE: SVRE; Nasdaq: SVRE) was considered promising when it was floated on the Tel Aviv Stock Exchange in the summer of 2020, with a pre-money valuation of NIS 87 million. The company, which was founded in 2014 and is headed by Ori Gilboa, is a developer of technology designed to prevent drivers being distracted by mobile telephones.
SaverOne was later floated on Nasdaq as well, but although it has since announced several pilot programs and contracts, and claims to address a potential market of $300 billion, its stock has lost almost all its value.
SaverOne is currently traded at a market cap of just $1.4 million, after falling 99.7% since its flotation in Tel Aviv. The stock was in danger of being delisted from Nasdaq, but after a 1:18 reverse split, it was recently notified that it meets the conditions for continuing to be traded.
The company has financing agreements with a fund of Yorkville Advisors Global that include the possibility of selling shares to the fund at a discount from time to time, which could be one factor weighing on the share price.
In the first half of this year, SaverOne’s revenue totaled just NIS 483,000, which compares with nearly NIS 1.5 million in the corresponding period of 2023. Its loss was NIS 16.3 million (the company has burned over NIS 150 million since it was founded), and its financials carry a going concern qualification. Gilboa said on the release of the financials that 2024 was a challenging year for the company, because of longer sales cycles in Israel.
"International expansion demands substantial effort, and in 2024 we made big progress on that," Gilboa said. In the past few months, the company has announced an initial distribution agreement for ten states in the US, installation of its systems in four bus fleets in Mexico, and, this week, an agreement for installation of 200 systems on a vehicle fleet in Spain.
SaverOne said in response: "Small and medium-size technology companies on Nasdaq in general, and Israeli autotech companies in particular, sometimes suffer a decline in value unconnected to developments in their business. In recent weeks, significant business development has taken place at SaverOne, with the signing of pilot agreements overseas. There has been growth in Israel too, with the installation of more and more SaverOne systems at major companies."
Published by Globes, Israel business news - en.globes.co.il - on November 20, 2024.
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