Founded in 2009 by Mr. Nir Gabay and Mr. Roee Kashi, El-Sight Israel is a cutting-edge technology company that draws on the combined experiences of its co-founders in Israeli Special Forces and Military Intelligence.
El-Sight has developed a high-bandwidth-mobile-secured-datalink product which enhances the traditional live data transfer methods with a multi-link based technology (the Multichannel) which is capable of high bandwidth, stable and secured live data transfer (Technology). The company is Israeli based and IPO back in 2017 in effort to raise capital to commercialise it technology. In the past it has sold its Multichannel technology to special forces teams, Police services, emergency services and military and defence services.
In February 2019 it launched Halo its flagship communication platform design for Drones and UAVs. HALO is a compact and lightweight transmission technology that delivers high-bandwidth data and video with total security. It boasts exceptional battery efficiency, low heat generation, improved performance, and enhanced features. https://www.asx.com.au/asxpdf/20190226/pdf/442z2v7z503458.pdf
As described by the company “HALO units simultaneously transmit 3G/4G LTE/5G, with failover to satellite, ensuring unbroken connectivity at high bandwidths with complete redundancy. Multichannel encrypted transmission ensures complete security: data is split into multiple pieces, based on number of channels, and each segment is encrypted up to 256 bits, locked into a VPN tunnel, and transmitted via aggregated GSM channels. Even if one or two pieces of data has been hacked, the hacked data is incomplete and useless as it’s still impossible to get the full picture”.
Bull Cases
· Rise of the Drones – personnel delivery, UAVs Military etc.
Bear Cases
· Fairly illiquid stock with a low inside ownership from current management. Previous CEO and Co-founder Nir Gabay left the company in October 2020. Co-founder Roee Kashi is still with company as its Chief Technology Officer. There has been small parcels of buying from current management in last 6 months summarized below.
· Highly competitive industry – not sure how revolutionary HALO chips are compared to the competition. El-sight only has approx. 25 staff which be hard to compete against other bigger chip/drone makers.
· High cash burn (R&D, Staff, Marketing)
Capital Raises History – Raised Approx. $35.88m at Market Cap ~$46.6m today.
· November 2022 Raises $8m through the issue of convertible notes at $0.30, a term of 24 months, 8% per annum.
· November 2020 Raises $11m Rights Issue.
· January 2020 Raises $2.88m from a group of strategic and substantial Investors in private placement at an issue price of $0.32 per share.
· March 2018 Raises $9,005,189 from wholesale and institutional investors.
· June 2017 IPO raising $5m at $0.20 per share
Inside Ownership Ordinary Shares % ELS Issued Net Value at $0.31
Ami Shafran 61,690 0.04% $19.1K
David Furstenberg 61,690 0.04% $19.1K
Howard Digby 2,117,004 1.41% $656K
Joshua Landau 80,000 0.05% $24.8K
Total 2,320,384 1.54% $719.3K
*Note does not include Options
Management Buying
Howard Digby
24 November 2022 Buying on market $25,000 at $0.32 ($8000)
Joshua Landau
15 December 2022 Buying on market 28,350 at $0.32 ($9,072)
29 November 2022 Buying on market 11,650 at $0.32 ($3,728)
David Furstenberg
26 Sepember 2022 Buying on market 22,940 at $0.3243 ($7,439.40)
Ami Shafran
26 September 2022 Buying on market 22,940 at $0.3243 ($7,439.40)
