TLV Recap - 27 December
Freightos SPAC gets 'buy' sign from Chardan, Caesarstone 'streamlines'
December 27
Caesarstone cuts workforce by 10%
Engineered quartz countertop maker Caesarstone (NASDAQ:CSTE) said it is cutting its global workforce by 10%, according to a regulatory filing.
Caesarstone said a total of 200 employees will leave the company including those who were dismissed and some who voluntarily left.
The Sdot Yam-based company is implementing streamlining procedures that include “operational efficiency moves, price increases, focusing on growth engines.”
CSTE shares look to end the year down about 50% over the last 12 months.
Freightos SPAC acquirer Gesher gets ‘buy’ signal from Chardan
The SPAC that wants to bring Freightos public got the ‘buy’ signal from Chardan Research on Wednesday, with a $13/share price target.
Gesher I Acquisition (NASDAQ:GIAC) announced in late May that it would combine with Jerusalem-based Freightos with an implied pro forma enterprise value of approximately $435 million.
Chardan likes the shipping and logistics platform’s asset-light business model, its strong cash position and the top-line growth, with a forecast of a 20x multiple on 2025E adj. EV/EBITDA to derive the $13 target.
Gesher/Freightos is still looking for the deal to close in early 2023.
Globes spotlights troubling year ahead for Israeli unicorns as investment becomes scarce
News outlet Globes put into spotlight the country’s tech unicorns and their chances of getting through 2023 amid the scarcity of investment and a drop in the valuations.
The outlet noted that the privately held tech companies are mainly reliant on the investments raised from venture capital funds and/or hedge funds once every year or two, depending on the rate of cash burn, revenue, and their ability to grow.
Globes argues that Israeli unicorns like AppsFlyer, BigID, eToro, Aqua Security, and Trax have already reached the desired timeframe of 18-24 months for raising money.
Other firms such as Cybereason, Fabric, Yotpo, Via and Lusha may avoid raising new funds in 2023 and even in H1 2024 as they received investments during the “boom years” of 2020 and 2021 and are spreading expenses over years.