Energy (Simul Angan, NRGN) – a leading company in the seed enhancement industry through artificial intelligence, reported that it has successfully completed an initial public offering (IPO), and in the coming days its shares will begin trading on the Tel Aviv Stock Exchange. Uniformly, the company raised NIS 100 million at a company value of NIS 370 million after the money (about NIS 420 million in full dilution) and a number of leading institutional entities in the Israeli market took part in it.
Energy has developed software based on artificial intelligence, which analyzes large amounts of genetic data (Big Data) in order to optimize the improvement of plant and animal species in the agricultural and food industries, without genetic engineering. The technology is unique and groundbreaking and enables its customers to accelerate the development of crop-intensive varieties, resistant to diseases and extreme climatic conditions, and with a healthier nutritional composition.
Energy’s technology significantly shortens the time required to improve seeds and livestock, thereby lowering growing costs. Shortening this time period gives the company customers a significant competitive advantage that allows them to enter the market faster and capture a larger market share, with optimal varieties The company has sales in 30 countries around the world and its customers include a number of leading international corporations in the world in various industries such as agriculture, food and beverage, cannabis, paper, rubber and more.
Assaf Levy, Chairman of Energy: “We are proud of the success of the IPO, and thank the investing public for expressing confidence in a number of leading institutional entities that took part in the IPO. We consider making the company public, an important step in its business life. The IPO money will be used to accelerate growth. “Energy operates in the plant and animal genomics market – a market that is growing rapidly and is expected to reach an estimated $ 6.4 billion by 2025.”
Dr. Gil Ronen, CEO of Energy: Energy has a groundbreaking technological solution that has been proven to date in more than 250 projects with international clients, including leading agricultural corporations, such as Bayer Bayer and Syngenta. Further proving our ability, we intend to deepen the company’s global operations “And we estimate that in the coming years, Energy will be positioned as a leading and vital player in this important and growing field.”
The company launched the technology it first developed in 2015, and it notes that it will work to increase its revenue by 150% -250% over the next two years. The company’s business model is based, among other things, on multi-year agreements with agricultural and industrial corporations. These corporations adopt the technology of Energy and acquire from it rights to use the software through the cloud and services in exchange for periodic payments.
In 2020, the company began to implement another business model of developing intellectual property with its customers in exchange for royalty payments from the sale of their products. To date, royalties have been signed from the sale to farmers of corn seeds, rice, chili, tomatoes and the cultivation of a spice plant.
Dr. Gil Ronen is the company’s CEO and one of its founders; The company is chaired by Mr. Assaf Levy, the director of the Flow Investment Fund and Mr. Ehud Balder is the CFO.
The company’s offering was accompanied by attorneys Eyal Bar-Zvi and Efrat Tzur from Herzog Fox Ne’eman, and CPA Shachar Khoury from PWC Israel.