The series of R&D partnerships floated on the Tel Aviv Stock Exchange in recent months, part of a larger phenomenon of a wave of IPOs, is now joined by limited partnership HIVE 2040. Like its predecessors, HIVE 2040 has a star-studded cast.
Besides founding and controlling partner Tomer Avnon, this includes former chief of police Yohanan Danino and former Mossad chief Tamir Pardo, who will serve on the partnership's investment committee alongside former Israel Aerospace Industries CEO Joseph (Yossi) Weiss and former National Cyber Security Authority head Baruch (Buky) Carmeli.
HIVE 2040 plans to invest in innovative technology companies in cybersecurity, smart cities, public safety, and the smart economy.
The partnership has three target companies in which the proceeds of its offering will be invested: cybersecurity companies IXDen and NanoLock Security, and Viisights, which does artificial intelligence-based automated video analysis.
Like most of the other R&D partnerships that have reached the local stock exchange, HIVE 2040 is a recently formed partnership with no revenue, and its auditors bring investors' attention to the fact that its activity "involves large financial expenditures and a high degree of financial risk and uncertainty," and that it will need to raise money from various sources in order to continue in business.
The offering, which will be in the tens of millions of shekels, will be led by Apex Issuances and Leader Underwriters.
The prospectus reveals that the partnership will pay a monthly management fee of $25,000 to the general partner, initiation fees of 20-30% of revenue or proceeds received, and expenses.
Tel Aviv Stock Exchange figures show that out of 27 equity offerings in 2020, five were by R&D partnerships, and that out of 33 equity offerings in the first quarter of this year, six were by R&D partnerships.
Published by Globes, Israel business news - en.globes.co.il - on April 19, 2021
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