The pile of shelf prospectuses filed by Israeli companies listed on Wall Street continues to grow. Contactless microprocessor-based smart card developer OTI - On Track Innovations Ltd. (Nasdaq: OTIV; DAX: OT5), which filed a shelf prospectus on Monday, joins Allot Communications Ltd. (Nasdaq:ALLT; TASE: ALLT) and Orbotech Ltd. (Nasdaq: ORBK).
On Track's smart cards are designed for payments, and the issue of passports and other identification documents.
On Track is seeking to raise up to $40 million in an issue of shares and possibly options or marketable units comprised of various kinds of securities. A shelf prospectus is similar to the prospectus filed before an IPO, but with two major differences. First, the shelf prospectus does not include a list of investment banks who will act as underwriters in the offering, and second, it is valid for two years from the submission date.
On Track currently has $26.7 million in cash and cash equivalents. The capital raised, if and when it is raised, will presumably be used in part for acquisitions of other activities to boost the company's growth rate. An indication of this is in Monday's acquisition of parking solutions provider Ganis Systems Ltd. for $400,000 in cash, plus shares and up to $450,000 in milestone payments.
On Track's share price closed at $2.98 on Nasdaq yesterday, giving a market cap of $73 million. The share price fell 1.1% in Frankfurt today to €2.17.
Published by Globes [online], Israel business news - www.globes-online.com - on January 6, 2011
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