Company Next Jen Interested in merging the St. Tech company he founded Harel Hershtik, Who was recently released from prison after serving a murder sentence, announced today that Securities Authority Updated her that she had violated PA rules. The violation, according to the authority, was the convening of a general meeting to vote on the merger, without publishing a full prospectus of Next Jen. Following the Authority’s request, Next Jen adjourned the general meeting to vote on the merger for an unknown date, and submitted a draft prospectus. However, the Securities Authority still considers its conduct originally a violation.
Next Jen said she disagrees with that position. She stated that all her actions in connection with the merger transaction were done lawfully and with the assistance of her lawyers, on the basis of ongoing legal advice she received.
St. Tech has been in the headlines frequently in recent months, first when the market learned that the company’s founder is a convicted murderer and today a licensed inmate, and later following the postponement of the merger. It seems that the Securities Authority is reluctant from Hershtik and other parties involved in the company, and wants to give investors a lot of time and information before approving the merger, which according to the share price at the moment, should put the company in the Tel Aviv biomed index. .
Next Jen Traded at a value of NIS 91 million, before the merger, which is expected to yield a value four times higher, its share has lost 44% in the last three months, only some of them due to the revelation about the founder’s past.
The private Tech Tech, founded in 2018 by Hershtik and others, is managed by Shulam Lapidot, former CEO of the IDB Group. Other shareholders include Research Vice President Drew Morris, CEO Hebron and Moshe Birman Among the smaller investors in the company is the businessman Old Jackie.
The chairman of Next Jen, the acquiring company in the merger, is Maj. Gen. (Res.) Yaakov Amidror, who previously served as chief of staff for national security (Amidror testified in favor of Hershtik on his release committee). Former Chief Economist of Excellence. Former MK Colette Avital, serves as external director at NextGen. Zeev Rothstein, Former CEO of Hadassah Hospital, Chairman of the Company’s Scientific Advisory Council.
St. Tech’s product has been in a number of clinical trials, and a development process is still required to make it commercial. The company recorded a loss of NIS 25 million in 2020, and in the first half of 2021 its losses reached NIS 15 million. The company employs 13 people.
As part of the planned merger, the shareholders of Saint-Tech are expected to receive 75% of the shares of Next Jen, while Hershtik is expected to hold 5.5% -6.5% of the shares and to be appointed VP of technology in the merged company.