Tech company SuperCom Inc. (Nasdaq: SPCB) is preparing to complete the acquisition it announced earlier this year, and is raising $12 million in a secondary offering on Nasdaq. The offering is priced at $4.00 per share. Share prices fell 10% to $4.20 yesterday, following the announcement of the share offering, reflecting a market cap of $37 million. Since the beginning of 2013, SuperCom’s stock has risen by several hundred percent.

SuperCom will issue 3 million shares. The offering is liable to grow by $1.8 million if the underwriters choose to exercise their option to purchase shares.

SuperCom operates in two fields: EID, the issuing of electronic IDs, and RFID, an alternative to barcode technology.

In August, the company announced the acquisition of the Smart ID division of another Israeli company, OTI - On Track Innovations Ltd. (Nasdaq: OTIV; DAX: OT5), for $10 million, plus an additional $12.5 million, depending on the future performance of the division. The division’s technology is based on assets that OTI purchased from SuperCom seven years earlier.

SuperCom’s largest shareholder is Sigma Wave, which lost in the bidding to acquire Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) from its receiver. Arie Trabelsi, owner of Sigma Wave, is CEO of SuperCom.

Published by Globes [online], Israel business news - www.globes-online.com - on December 19, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013