Israeli firms come to ASX

18/04/2016 - 12:05

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The developer of a gun safety device has become the fifth Israeli company in the technology or medical cannabis sectors to pursue a listing on the ASX through either an IPO or a reverse takeover of a moribund WA mining company.

Israeli firms come to ASX
Clipfort’s GoSafe ID Mag product incorporates a touch fingerprint sensor to authenticate the owner of a firearm to use the weapon.

The developer of a gun safety device has become the fifth Israeli company in the technology or medical cannabis sectors to pursue a listing on the ASX through either an IPO or a reverse takeover of a moribund WA mining company.

Azonto Petroleum announced today plans to acquire Clipfort, an Israel-based company that is developing a fingerprint-activated firearm magazine to prevent unauthorised use of guns.

Clipfort’s GoSafe ID Mag product incorporates a touch fingerprint sensor to authenticate the owner of a firearm to use the weapon.

The company’s business model will focus initially on the US market, where an estimated 310 million firearms are in the hands of civilians.

It’s the fourth backdoor listing to be undertaken by a Perth-based company into the Israel market in the last year.

The most recent deal was announced earlier this month, with Victory Mines planning to acquire tech firm Milestone Sports, while Drake Resources last month put forward plans to buy Israel-based cyber security firm Genome Technologies.

In November last year, Radar Iron initiated a reverse takeover of Israel tech company Weebit-Nano, while Erin Resources last year completed its reverse takeover of medical and cosmetic cannabis company MGC Pharmaceuticals.

MMJ Phytotech, another Israeli medical cannabis company, completed an IPO last January to list on the ASX, incorporating part of its business in WA.

Under the terms of the deal announced today, Azonto will wholly acquire Clipfort in exchange for up to 1.4 billion shares at a maximum price of 2 cents each, valuing the deal at about $28.1 million.

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

As the acquisition will result in a change in the company’s business model, Azonto will be required to complete a capital raising in order to comply with ASX relisting rules.

Azonto hasn’t yet confirmed the size of the raising, but says the offer will be made at a minimum of 2 cents per share.

If the deal is successful, the merged company’s board will comprise of Clipfort founder Daniel Biran, two Australian resident directors, one independent director (which will be agreed by Azonto and Clipfort), and up to three directors nominated by Clipfort.

The company hopes to begin trading on the ASX by late July.

Azonto shares have surged since the end of March, with the stock worth over 66 per cent more as of midday today.

The recent price spike has drawn attention of the ASX, which has issued a price query to the company.

Azonto shares were 7.1 per cent higher to 1.5 cents each at midday.

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