- Israeli scale manufacturer Shekel Brainweigh (SBW) has entered a trading halt while it plans a “material” capital raise
- In September last year, Shekel announced it was considering funding options to strengthen its balance sheet
- While details on how much will be raised or what the funding will be used for is not certain, it seems the company would benefit from a stronger balance sheet
- Nevertheless, the market will only have to wait until Monday, January 18, at the latest, to find out further details
- Company shares last traded at 18.5 cents on Wednesday, January 13
Shekel Brainweigh (SBW) has entered a trading halt while it plans a “material” capital raise.
Shekel is an Israel-based software company that develops and manufactures electronic scales and weighing systems.
At this stage, it isn’t clear how much the ASX-lister will raise or what the funds will be used for, but the market won’t have to wait any later than Monday, January 18 to find out.
2021 has kicked off on a less than impressive start as Shekel announced the resignation of its company secretary, Sinead Teague, along with the termination of a memorandum of understanding (MoU).
Sinead’s resignation was published to the market on January 6 and Shekel had already announced Elizabeth Spooner as the replacement.
A couple of days before her resignation, the scale manufacturer said the MoU with U.K. software company, Edgify, had been terminated after almost a year and a half.
The pair collaborated to determine potential commercial opportunities. However, Edgify reportedly breached the agreement, among others, and is now considering its legal options.
Shekel is now working with another partner to provide a full solution system that supports self-checkouts, which are being used more and more.
At the end of the September 2020 quarter, the Israeli company released an announcement seeking ways to strengthen its balance sheet. A stronger cash position would allow it to commercialise products that have been in development over the last several years.
The company hadn’t yet reached a decision on proceeding with any particular funding option, claiming it was “merely considering its funding options”.
As no loan facilities or capital raises had been announced, that is until now, the upcoming raise may indeed help to strengthen Shekel Brainweigh’s balance sheet.
Company shares last traded at 18.5 cents on Wednesday, January 13.