GoTo Global is advancing in the process of entering the stock market. Car Services Company ambassador, Which holds about 36% of Goto Global’s shares, updated that foreign car company ASTARA has signed a binding document for an investment of $ 5 million in Goto Global. This, as part of a round of fundraising carried out by Goto, amounting to $ 18 million, at a value of $ 102 million “before the money”.
Under the investment agreement, ASTARA will join the company’s pre-raising round, together with Goto’s existing shareholders – headed by Ambassador, Businessman Adam NeumannCar importer Talkar of Remy Unger And German venture capital funds. Ghetto reports that ASTARA is a global company operating in 16 countries on three continents, with a turnover of 4 billion euros a year and sales of over 200,000 vehicles.
Pursuant to the investment agreement signed, ASTARA will receive, in addition to shares in the company, the right to appoint a board member, the right to offer vehicles for the benefit of the company’s global operations and the right to promote collaborations with Goto. The ambassador also states that if Astra’s investment is completed, then a $ 6.2 million converted loan, recently granted to Goto Global by its shareholders, will be converted into the company’s shares.
Adam Neumann invested at a value of $ 30 million
Goto Global (formerly Car2Go) is engaged in providing car sharing and rental services for varying periods of time, and in this context offers “A number of cooperative means of transportation in a number of types of services that allow its customers to move in and out of the city. “
Ambassador and shareholders of Goto Global are working to add it to the local trading arena through a merger with Narhatech Media, which is traded in Tel Aviv. This, according to an ambitious company value of about $ 120 million for Global Ghetto (about NIS 390 million) – significantly higher than the value at which the last investments were made in it.
Thus, only about a year ago, Talkar, an importer of Kia vehicles in Israel, invested about $ 3.5 million in Goto Global, at a company value of $ 45 million. Earlier, in July 2020, it was Adam Neumann, the entrepreneur of the space space giant WeWork, who gave the company about $ 10 million at a value of about $ 30 million “after the money” (a quarter of the value now requested), and received about a third of the company’s shares.
Goto Global recently signed a non-binding memorandum of understanding with Narhatech, according to which it will be merged into the listed company in exchange for an allotment of approximately 74% of Narhatech’s shares to Goto shareholders. The Memorandum of Understanding also sets out some conditions for Ghetto Global, which will be required, among other things, to be free of any debt, except for financial debts amounting to about $ 10 million and current debts during its normal business, and after completing $ 18 million in cash at the time of completion.
Significant losses clouded Ambassador results
Gutto Global’s activities have for a long time clouded Ambassador’s financial results, due to significant losses it has generated, and even after Ambassador stopped consolidating its results in the reports, it continues to stand out negatively in Ambassador results.
On the top line, Goto Global’s revenues grew by more than 20% between January and September 2021, approaching NIS 40 million, which did not prevent it from moving to a gross loss during this period and significantly increasing its operating losses. The company’s losses approached NIS 50 million in less than two years – NIS 28 million between January and September 2021 and about NIS 20 million in the sum of the entire year 2020.
Goto Global’s cash position at the end of September was less than NIS 2.5 million. On the other hand, the company presented current liabilities of NIS 46 million and long-term liabilities of NIS 24 million.
Shagrir shares responded to an update about Goto Global with a 6% increase in trading on the stock exchange, to a company value of NIS 186 million. Shagrir’s main activity is concentrated on providing various car services to insurance companies, and it has expanded in recent years to synergistic and complementary activities.
The company into which Goto Global is supposed to merge in the current deal, Narhatech Media, previously operated under Sumoto, which was split into two public companies – Nostromo, which engages in storage and energy demand management, and Narhatech, which coordinated Sumoto’s assets in the field of online audio and voice advertising. Narhatech is currently traded at a market value of about NIS 70 million.