Israeli smart road company ElectReon Wireless (TASE: ELWS) has taken advantage of the meteoric rise in its share price this year (and in the past three years). On Thursday, it raised NIS 123 million in an equity offering amounting to 12.4% of its share capital.
Among the investors in the offering, which was led by ValueBase Underwriting, were investment houses Psagot, Mor, Excellence, and Halman Adubi, and hedge funds Alpha and Safra, and Afcon Holdings.
The offering was priced at NIS 157 per share (two shares for NIS 314 plus a warrant with an exercise price of NIS 210 exercisable until December 2021). The price represents a discount of 14% on the stock's closing price on Thursday. ElectReon's market cap has reached NIS 1.55 billion, after a 163% rise so far this year.
ElectReon's technology enables electric vehicles to be charged as they are driven through wireless charging from a smart road. The company is active in Israel and in Europe. The company says that the money raised in the current offering will be used to expand to additional countries in Europe.
ElectReon was founded in late 2013 by Oren Ezer and Hanan Rumbak, both formerly with Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT). In October 2017, the company was listed on the Tel Aviv Stock exchange through a merger into stock exchange shell company Biomedix Incubator Limited. Its market cap has since multiplied about 30 times. The company is currently controlled by Ezer and Rumbak, and Dan Bus Company.
Published by Globes, Israel business news - en.globes.co.il - on June 28, 2020
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