Packaging tech co Highcon winding down

Less than four and a half years later, after Highcon Systems Highcon Systems (Tase: HICN) on the Tel Aviv Stock Exchange is rated more than 500 million New, it now has the maximum of the market worth 4 million NIS, and it seems that it has reached the end of the road.

Yavne -based Systems Highon is developer for the post -printing -printing processes and curly cardboard. It was one of many technology companies, some of which are somewhat immature, which were put in the local exchange in 2020-2021, which resulted in very disappointing revenues. HIGON wiped 99.9 % of its value for investors.

The company came to the Tel Aviv Stock Exchange in December 2020 with high expectations. Its president, Shlomo Nimrodi, told “Globes” in 2021 that the company has developed a disturbing technology and that it believes in its ability to revolutionize the global manufacturing industry for packaging. She also had some prominent investors, among them the entrepreneur series Beni Landa, who has extensive experience in printing technology, and JVP company EREL Margalit. Landa currently has 9.2 % of Highcon and JVP 8.9 %.

Last week, Highcon told the stock exchange: “After the company’s board’s board’s decision, and in light of the company’s position, the company decided to lay off most of its employees and consultants. At this stage, it was decided to keep twenty employees and consultants to continue the company’s operation below a level, in order to maintain its activity as“ continuous ”. At the same time, the company is preparing to apply for procedures to formulate a debt settlement.” The share price increased. Highcon by more than 60 % yesterday, but it fell about 20 % so far.

HIGON cleared a large percentage of its power operating more than a year ago, and at the end of last year, she used 85 people, after laying off 65.

“Great difficulties in cash flow”

Last week's notice states that Highcon “faced great difficulties in cash flow due to a mixture of external factors and business.” He mentions orders of up to $ 10 million that were later postponed in the year, which prevented them from securing the required financing and meeting their financial obligations. In addition, the company says: “The war in the region has created great uncertainty, which has postponed the obligations of current and potential customers.”

Another factor that the company says is that the company has affected the global economic slowdown and also “the effects of the tariff war that started recently by the United States”, which it says has caused an increasing fear of major investments and the slowdown of decisions by the important players in the market.

The company adds that the continuous rehabilitation, which was attached to its financial data, has harmed the confidence of potential customers. “All these factors, along with the fact that the company has worked for some time in the conditions of a very restricted cash flow, led to its financial balance and the exacerbation of its economic distress.”

The annual financial statements of 2024 have not been launched, but Highcon warns of “it seems that there is fear that the company is suffering from a capital deficit.” The last reports published by the company are in the first half of the year 2024, in which its auditors state that it incurred losses of $ 4.9 million and had a negative cash flow of $ 3.9 million in the six months until the end of June 2024, and that it had a deficit in the rights of shareholders of 7.2 million dollars in June 2024, which leads to the connection of anxiety qualifications.

In these phrases, the company provided a growth in revenue from $ 3.4 million in the first half of 2023 to 9.9 million dollars in the first half of 2024, and a narrower loss of 57.5 %, from $ 4.9 million as mentioned. The company has accumulated losses of $ 271 million since its foundation in 2009.

It was published by Globes, Israel Business News – En.globes.co.il – on March 31, 2025.

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