Israeli company Elsight Ltd. (ASX: ELS) held its IPO on the Australian Securities Exchange nine months ago at a company value of $20 million. Three months after the offering, Elsight's share began to climb, reaching a peak of A$1.68 in November, more than eight times the price of A$0.20 in the IPO. The share has since receded, but is still higher than the IPO price. Elsight today announced a A$9 million (NIS 24 million) private placement from investment institutions and private investors. The company will issue 12.5 million new shares to new investors at A$0.72 per share, a 17% discount on the weekend price. Elsight's share price then plunged 14.4% in trading to A$0.75, reflecting a A$62 million (NIS 166 million) market cap. Participants in the private placement will receive one three-year option at a strike price of $1 for every two shares they buy. Elsight had $1.1 million in cash at the end of 2017 after generating a $719,000 positive cash flow from activity.
Not just the security market
CEO Nir Gabay and former IDF intelligence officer VP R&D Roee Kashi founded Elsight in 2009. The company has developed a system for streaming protected information in real time capable of sending and receiving encrypted data to and from anywhere in the world. Elsight began in the security market, and the Israeli security forces are among its customers. The company is now expanding to new markets beyond security, such as autonomous vehicles, live broadcasts, etc. "We are satisfied with the strong demand for the offering, and are happy to accept new strategic investors and investment institutions," Gabay said. "This also reflects Elsight's attractiveness as an investment and investors' confidence in management's plans for growth in revenue and signing agreements with global customers of all the company's divisions: autonomous vehicles, army and homeland security, tele-medicine, broadcasting, transportation, and logistics."
Published by Globes [online], Israel Business News - www.globes-online.com - on March 5, 2018
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