At the end of November, the stock market skeleton declined ICB (Israel China Biotechnology) the shareholders’ meeting that was supposed to approve the merger into the investment house Silver Castel Towards an IPO. However, a day before the meeting was convened, the ICB announced that the meeting had been postponed for an unknown date, due to what it defined as “discussions and talks with the Securities Authority and with the Stock Exchange.”
The big problem with postponing the meeting, in which the shareholders were also supposed to discuss the appointment of a board of directors and chairman, appointment of a CEO, remuneration policy and more, is that the agreement between the parties stipulates that it must be signed and approved by December 16, next week. Therefore, postponing the meeting to an unknown date cast great doubt on the continuation of the merger process.
At noon today (Thursday) the ICB and Silver Castel, the investment house specializing in digital assets, calmed their concerns when they reported that they had extended the negotiations until the end of December, in order to complete the merger. In addition, the parties estimate that an amended report regarding the convening of the general meeting will be published in the coming days. Under the agreement between the parties, shares of Silver Castel’s stock exchange skeleton will be allotted in exchange for the transfer of 100% of Silver Castel’s issued and paid-up capital (fully diluted) to the Company.
Losses of NIS 9 million since its inception
Silver Castel Investment House was established in 2018 by three former senior executives in the business sector – Zvi Ziv who served as CEO of Bank Hapoalim, Gabi Ravid who served as CEO of Psagot Investment House and Eli Mizrah, former CEO of Golf. Currently, the investment house offers exposure to digital assets Through hedge funds.
Since its inception, Silver Castel has accumulated losses of NIS 9 million, and in the first half of 2021 the loss amounted to NIS 2.15 million. The investment house’s revenues in half amounted to only NIS 412,000, of which 270,000 come from margins in respect of the digital currency inventory, due in part to the purchase of digital currencies in the amount of NIS 171,000.
To this income must be added the success fee charged by the investment house from the performance of the hedge funds managed by it, which are calculated on an annual basis. The success fee in the first half of the year amounted to NIS 877,000, but the amount was not recognized as income in these reports, since it is a variable component that, according to the accounting rules, cannot be recognized at this time.