Dotz Nano to be 8th Israeli ASX listing

23/05/2016 - 12:45

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Israel-based materials company Dotz Nano has joined the wave of tech firms from that country seeking to raise capital in Australia via a listing on the ASX.

Dotz Nano to be 8th Israeli ASX listing
Otsana Capital managing director Faldi Ismail.

Israel-based materials company Dotz Nano has joined the wave of tech firms from that country seeking to raise capital in Australia via a listing on the ASX.

Dotz Nano is planning a backdoor listing via one-time mining company Northern Iron; if successful it would be the eighth tech firm or medicinal cannabis company from Israel to list on the local bourse over the past 18 months.

Dotz Nano plans to commercialise a patented technology, created at Rice University in Houston, US, for the production of graphene quantum dots, which are used for improving solar cells, fuel cells, medical imaging, Li-ion batteries, energy storage, making LEDs and supercapacitor batteries.

Prominent consumers of graphene quantum dot technology include Samsung, LG, Sharp, Phillips and TCL.

The company says the patented system uses coal as a source material and can be supplied at a lower cost than its competitors.

Under the terms of the deal, Northern will wholly acquire Dotz Nano in exchange for 660 million shares at 2 cents each, valuing the purchase price at $13.2 million.

Northern will also issue performance shares, subject to the achievement of certain milestones.

Nearly all of the Israeli listings are being pursued via reverse takeovers - Perth-based ASX-listed companies currently undertaking these deals include Lithex Resources, Azonto Petroleum, Radar Iron, Victory Mines and Drake Resources.

The most recent of these deals was announced earlier this month, with Lithex planning to acquire battery technology company Voltape in a deal worth $28.7 million.

Israel-based medicinal cannabis company MMJ Phytotech has already completed an IPO on the ASX while Erin Resources completed its reverse takeover of MGC Pharmaceuticals earlier this year.

In order to comply with ASX relisting rules, Northern will be required to complete a minimum $3.5 million capital raising at 2 cents per share.

If the deal is successful, the company’s board will be replaced with Dotz Nano's Israel-based nominees and Otsana Capital managing director Faldi Ismail as its Australian board representative.

The company hopes to begin trading under its new business model by August.

Northern appointed James Thackray of The Headquarters Corporate Advisory as voluntary administrator in November last year, after the company’s subsidiary which operated the Sydvaranger iron project in Norway filed for bankruptcy.

Last week, Mr Thackray announced the company had finalised a deed of company arrangement with Otsana and a recapitalisation proposal had been satisfied, with Northern to exit voluntary administration and seek ASX approval to have its shares reinstated.

 

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