Benny Landa’s GenCell to implement streamlining plan

Israeli clean tech company Gensel Energy (TASE: GNCL), whose largest shareholder is businessman Benny Lando, is implementing a simplification plan, “in order to improve its capital flow position and financial strength.” The company announced further reductions in its workforce, cuts in administrative and general expenses, cuts in research and development spending and increased use of outsourcing services. In 2025, the company will reduce the rent it pays.

The company estimates that this simplification plan will save NIS 5 million in annual spending, which will help it better deal with current and future challenges.

At the same time, GenCell announced that it would cut the salaries of its CEO and chairman. Chairman Asher Levy agreed to voluntarily cut his salary by 15% starting in July for 18 months, while CEO Rami Reshef’s salary will also be reduced by 15% for the same period. Levy’s salary cost (including capital bonus) in 2023 was $137,000 for a 20% position. Reshef’s salary cost was NIS 616,000 for a full-time position. Reshef founded the company with partners in 2011.

Gencell develops and manufactures fuel cells as a power source for electricity generation. These fuel cells run on hydrogen produced from ammonia in a cost-effective, relatively cheap and non-polluting process. The company’s products are used as backups for the electrical systems of large companies. Gencell held its IPO during the 2020/2021 tech boom at a post-money company valuation of about NIS 800 million, but its market cap today is only NIS 68 million.

Gen Seal is not the only Penny Land company to have faced financial difficulties recently after an Israeli court issued a temporary stay of proceedings in favor of lab-grown diamond company LUSIX earlier this week.

This article was published in Globes, Israeli Business News – en.globes.co.il – on August 27, 2024.

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