Petah Tikva-based technology company SaverOne (TASE: SVRE, Nasdaq: SVRE) was considered promising when it floated on the Tel Aviv Stock Exchange in the summer of 2020, at a pre-cash valuation of NIS 87 million. The company, founded in 2014 and headed by Uri Gilboa, is developing technology designed to prevent drivers from being distracted by cell phones.
SaverOne later went public on the Nasdaq as well, but although it has since announced several pilot programs and contracts, and claims to address a potential $300 billion market, its shares have lost almost all of their value.
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SaverOne currently trades at a market capitalization of just $1.4 million, having fallen 99.7% since its launch in Tel Aviv. The stock was at risk of being delisted from the Nasdaq, but after a 18:1 reverse split, it was recently notified that it meets conditions to continue trading.
The Company has financing agreements with the Yorkville Advisors Global Fund that include the possibility of selling shares of the Fund at a discount from time to time, which may be one of the factors affecting the share price.
In the first half of this year, SaverOne’s total revenue was only NIS 483,000, compared to about NIS 1.5 million in the corresponding period of 2023. Its losses amounted to NIS 16.3 million (the company has burned more than NIS 150 million since its founding). Its financial statements carry continuity qualifications. When releasing the financial statements, Gilboa said that 2024 was a challenging year for the company, due to longer sales cycles in Israel.
“International expansion requires a great effort, and in 2024 we have made great progress in that,” Gilboa said. In the past few months, the company has announced an initial distribution agreement for ten states in the United States, installation of its systems in four bus fleets in Mexico, and this week, an agreement to install 200 systems on a fleet of vehicles in Spain. .
“Small and medium-sized technology companies on the Nasdaq in general, and Israeli automotive technology companies in particular, sometimes suffer from impairment unrelated to developments in their businesses,” SaverOne said in response. “In recent weeks, there has been a significant business development at SaverOne with the signing of Pilot agreements abroad, there has been growth in Israel as well, with more and more SaverOne systems being installed in major companies.”
Published by Globes, Israel Business News – en.globes.co.il – on November 20, 2024.
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