The Canomed company controlled by Tzachi Abu, which until recently dealt in the cannabis field and was invested in real estate activity, reported yesterday the raising of NIS 46.5 million for the allocation of new shares to institutional entities and the controlling owner.
The institutions will receive 53.75 million Canomed shares for NIS 21.5 million at a rate of 40 AZ, which is a deep discount on the market price. The controlling owner will be allocated 62.5 million shares under the same conditions and in exchange for NIS 25 million.
Canomed’s stock jumps by about 18% in the background to the allocation and despite the discount, since the entry of the institutions into the investment is an expression of confidence in the company that changed its activity to the real estate sector.
Following the acquisition of control by Tzachi Abu, the company reported last month on negotiations with various corporations to invest in urban renewal activities and on receiving a separate proposal from the controlling owner to transfer another activity held by him in the field of urban renewal in Ashdod. These are 4 Abu projects that are being planned in Ashdod with 776 housing units plus commercial spaces and after the completion of the urban renewal procedure (if completed) will amount to an estimated amount of 3,505 housing units plus commercial spaces.
Canomed traded before today’s increases according to a company value of NIS 56 million. With the surge in the stock market, the value reflected in the company is now estimated at approximately NIS 65 million.
Tzachi Abu acquired the control (25%) in Canomed at the end of 2022 from the brothers Kafir and Manor Gindi in order to pour real estate activity into the company. The Gindi brothers, who were left with a holding of 4.6% of the company, did not participate in the recruitment and therefore their holding will be diluted.