The non-bank credit company Valio Capital acquires the operations of Applichek for NIS 10 million, and will allocate 15% of the company’s shares worth about NIS 13 million. Applichek has a system for underwriting and managing credit risks (ie, assessing the chances that a person will not repay the check and is in any case more risky in terms of the recipient of the check) as well as a payment app that he has developed. The company is aimed at the small business sector and also has a credit portfolio of about NIS 50 million.
In addition, Valio Capital will allocate to Applicock owners non-negotiable warrants that convert to the Company’s shares for a period of three years, subject to compliance with milestones.
Valio Capital is traded at a value of NIS 87 million, and was acquired a year ago by businessman Rani Zim (53.5% holding) and since this is an allotment of new shares, it is in fact a dilution of existing investors in Valio Capital – but the market believes it is a good deal. -9%.
Rani Zim, Chairman of Valio Capital: “Through the acquisition, we will expand our presence in the small business sector, which numbers hundreds of thousands of businesses, and we will be able to offer a solution for discounting checks in small amounts, using a unique digital system developed by Applichek.”
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