The capital and debt markets continue to allow Israeli technology companies to increase their cash registers. Over the weekend, two of them reported major recruitments – Thyme Digital Completed a secondary share issue andKamtech Issued convertible bonds at 0% interest.
thyme , A manufacturer of digital printing systems for printing on textiles, updated that the issue pricing was set at $ 151 per share, about 6% less than the share price the day before the announcement of the secondary issue; Following the announcement of the pricing of the offering, Kornit shares soared to a high of more than $ 176, which reflects the company’s market value of $ 8.2 billion (an increase of 120% in the past year).
As part of the offering, Kornit raised about $ 293 million, and at the same time, the online trading giant Amazon, which owns shares in Kornit, sold part of its holding for $ 107 million. The volume of the raising may increase later, because the company gave the underwriters of the issue options to purchase additional shares for $ 59.9 million within 30 days.
Thyme plans to use the funds raised to fund future acquisitions, as well as for general business needs, including capital expenditures and working capital. At the end of the third quarter, Thyme had $ 458 million in cash and short-term investments.
Citigroup, Barclays, Goldman Sachs and Morgan Stanley were the underwriters of Thyme, along with Nidham, Stifel, William Blair, Bernberg, CJS and Craig Halom.
A profit of close to $ 100 million for Amazon
Amazon , Which sells more than half of its shares in Kornit in an offering, sells these shares at a profit of close to $ 100 million, after last year it sold another part of its holding in Kornit shares at a price of $ 56.5 per share and a profit of $ 73 million.
Amazon became a shareholder in Thyme following a strategic cooperation agreement signed between the companies in 2017, which included options for Amazon to purchase shares in Thyme as a function of its expenditure on Thyme products. The exercise price for the options was then set at $ 13.04, while the sale of the shares was made at a price of $ 151 per share, 11.6 times.
In the third quarter of the year, Thyme’s revenues totaled $ 86.7 million, excluding an accounting effect of $ 7.9 million for the warrants to Amazon. This is a growth of 51% compared to the corresponding quarter (excluding the effect in both quarters). Non-GAAP net income was $ 11.5 million, or 24 cents a share.
In the first three quarters of 2021, thyme revenue grew by 93.7% compared to the same period in 2020, reaching a level of $ 234 million. The company expects revenue of $ 89-93 million in the last quarter of the year, with a non-GAAP operating profit margin reaching 13% -15% of revenue (i.e. about $ 11.6-14 million).
Kamtech: A conversion rate of 23% above the share price
At the same time, as stated, it issued Kamtech , A manufacturer of test systems for the semiconductor industry, $ 175 million in convertible bonds. The company planned to raise $ 140 million, but increased the amount raised. In addition, buyers were given the option to purchase an additional $ 25 million within 13 days.
The issued bonds bear interest of 0%, and will mature on December 1, 2026, unless purchased by the Company earlier, or converted into shares in accordance with their terms at an earlier date.
The conversion rate is set at $ 58.45 per share, 23% above the share price before the announcement of the raising and 30% above the weekend price. At the end of the third quarter, CamTech had $ 215 million in cash and cash equivalents.
The company raised about $ 60 million last year by issuing shares on Nasdaq, and the share price was then set at $ 17, compared to about $ 44.7 today. The company, managed by Rafi Amit, is traded on Nasdaq and Tel Aviv at a market value of close to $ 2 billion, after a 140% increase in the stock over the past year.
CamTech posted revenue of $ 70.7 million in the third quarter of this year, up 76.4% from the same quarter last year. Since the beginning of the year, its revenues have grown by 82.3% compared to the corresponding period and amounted to $ 195 million. Non-GAAP net income increased 174% at the quarterly level and 200% since the beginning of the year, to $ 20 million and $ 51.7 million, respectively.