Two institutional entities provide support for QuickLizard, after a strong decline in the share price – the company raised NIS 15 million in a private placement by selling a 12% stake in the shares, at a price of NIS 38 per share, a premium of 10.5% on the market price.
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Yellin Lapidot Investment House bought shares for NIS 12 million and Moore bought shares for NIS 3 million. Following the allotment, Yellin will become a stakeholder with a holding of 9.77%. Moore Investment House, which already had an interest in the company, will increase its holding to 15.15%. The two will join another institution, Meitav Dash, which holds almost 14% of the shares.
Quicklizard, led by Pini Mendel, came to the capital market on the corona waves. The company is developing a SaaS platform for flexible pricing in cloud technology with a focus on online sales. The company’s system analyzes information from a variety of sources and helps the manufacturer to price the products more accurately.
Quicklizard raised NIS 45.5 million last February by issuing shares, at a value of NIS 110 million, and at the same time issued about one million convertible warrants at a price of NIS 66.9. Following the IPO, the stock soared more than 50% within a quarter but in the last quarter of 2021 began to decline. In the last six months, the company has lost 29% of its market value and was traded yesterday at a value of NIS 122 million.
This is a rather surprising acquisition of two of the major institutional institutions in Israel, since the small technology companies showed a short return in the last month of the year in the US. Because the reduction of credit in the US capital market by the central bank will hurt technology companies that rely on high credit in view of their position as loss-making companies.
“The paper has declined in the market in zero cycles and therefore its value (similar to other small securities in the market) has become detached from the economic reality,” explained an institution involved in the deal. “This is a company with dynamic product pricing software for e-commerce or sales sites using a lot of information sources to optimize sales. The company is global with a significant growth model and a high ARR (repeat revenue model).”
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