Two more flotations are on their way to the Tel Aviv Stock Exchange: the Clean Value Ventures partnership and solar energy systems company TIGI, each of which seeks to raise tens of millions of shekels. Both deal in renewable energy, which has been a hot sector in Tel Aviv for a long time.
Clean Value Ventures is a partnership for investment in advanced technologies in energy, cleantech and infrastructures. It is controlled by Naphtha Israel Petroleum Corp. (TASE: NFTA), the energy arm of the Equital Ltd. (TASE:EQTL) group, which is traded on the Tel Aviv Stock Exchange at a market cap of NIS 1.4 billion, and which holds stakes in, among other things, energy exploration partnership Isramco and income producing real estate company Airport City (TASE: ARPT).
"A high degree of financial risk"
The group is controlled by Jackob (Kobi) Maimon and Haim Tsuff, who chairs the partnership now being floated. Naphtha intends "to buy at least 20% of the participation units to be offered to the public". The joint CEOs of the partnership are Nir Marom and Amit Charbit. So far, Clean Value has invested NIS 30 million in four companies, an amount which is not dependent on the flotation.
The four are Raycatch, a developer of AI-based software for managing solar energy fields, which itself is preparing for a stock market flotation; Luminescent, developer of a solution for boosting the efficiency of solar energy production; Bio-Fence, a developer of anti-microbial and anti-viral coatings; and Meteo-Logic, which has a system for utilizing predictions of weather changes in energy commodity algo-trading.
Clean Value's auditors bring to potential investors' attention the fact that the partnership's activity "involves large expenditures and a high degree of financial risk and uncertainty" and that its activity is dependent on obtaining sources of finance.
TIGI, which was founded in 2007 by its chairperson Shimon Kalir, offers "innovative technology for solar panels and systems for the supply and storage of renewable heat energy for industrial and commercial use." The company claims that "TIGI’s Honeycomb Collector can produce year-round heat energy at lower costs than any other known alternatives, including electricity and fossil fuels, in domestic, commercial and industrial applications."
TIGI says that, since 2015, it has installed its products at thirty sites around the world, among them "leading industrial and commercial companies," including SAP's office building in Ra'anana, a food company in Arad, wineries in the Galil and the Golan, and Kibbutz Yizre'el.
In the first half of 2020, TIGI had revenue of NIS 1.5 million, which compares with revenue of less than NIS 700,000 for the whole of 2019, and it posted a loss of NIS 2.5 million, following a loss of NIS 5 million for the whole of 2019.
So far, some NIS 40 million have been invested in TIGI. Apart from the founder's family, prominent investors in it are Kobi and Judith Richter, and the Heshin, Rotlevy, and Liberman families.
Like many other companies in the current wave of those making IPOs on the Tel Aviv Stock Exchange, TIGI carries a going concern qualification to its financial statements. Its auditors point out that it has a negative cash flow from regular activity, a deficit on shareholders' equity, and balances of cash and cash equivalents "that are insufficient to enable the company to carry out its business plans" for the coming year.
Published by Globes, Israel business news - en.globes.co.il - on February 22, 2021
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