Sources inform ''Globes'' that Elron Electronic Industries Ltd. (Nasdaq: ELRN; TASE: ELRN) is in advanced negotiations to invest in a third water technology company. Elron VP Yair Cohen confirmed the report, saying that the technology in question would provide a solution that supplements the technologies of the two water companies that Elron has already invested in. All the companies are developing water purification technologies.
The company in question is apparently an early-stage company that is less far advanced than Atlantium Ltd. and AqWise Ltd. In other words, the new company still has no sales, but its technology has been proven beyond a doubt. Cohen said, “We’re talking about very strong and promising technology, which is undergoing trials and working operationally.”
Cohen declined to name the company or provide details about the deal. However, market sources estimate that Elron will invest about $2.5 million, substantially less than its previous investments. Elron’s first investment in water technologies was a $10 million investment for 32% of Atlantium. Aurum Ventures MKI Ltd., owned by Morris and Benji Kahn, owns 49% of Altantium, is the main partner in the investment and management in the company.
Ten days ago, Elron reportedly acquired 34% of AqWise for $3.4 million, reflecting a company value of $10 million.
Published by Globes [online], Israel business news - www.globes.co.il - on March 18, 2007
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