The incubator, which has established and developed 52 Israeli companies, has filed a prospectus to sell its shares on the Toronto Stock Exchange
Incubator Trendlines Group, which has helped establish and develop 52 Israeli companies, is looking to go public and sell its stock in Canada.
The company, which aims to incubate companies in the life science technologies, on June 6 filed a preliminary prospectus for an IPO with the Toronto Stock Exchange. Octagon Capital Corp., Euro Pacific Canada Inc., Paradigm Capital Inc., and M Partners Inc. are the agents for the stock sale.
Based in Misgav, Trendlines discovers, invests in, incubates and provides services to Israel-based life science companies in the medical and agricultural technology fields. It provides portfolio companies with technical support, business strategy, market strategy, funding strategy, and financial support, among other things for their first years followings Trendlines’ initial involvement. With three business units including Trendlines Medical, Trendlines Agtech and Trendlines Labs, the incubator’s focus is on developing companies with a clear plan towards a successful exit. Trendlines Medical and Trendlines Agtech are both incubators that operate under the framework of the Technological Incubators Program of the Office of the Chief Scientist in Israel; while Trendlines Labs is the company’s own internal invention center.
Leading startups to their exits
Since it began operations in September 2007, Trendlines has incubated 52 companies, nine of which are now at the commercialization stage and generating revenues; four of which were acquired by multinational corporations, including three deals since August; and one has gone public on the Tel Aviv Stock Exchange. Some of its companies include InnoLab Surgical, acquired by Teleflex; PolyTouch Medical, acquired by Covidien; FlowSense, acquired by Baxter International; and Inspiro Medical, acquired by OPKO in April.
Typically, Trendlines supports opportunities that need an anticipated short time (six years or less) and have low capital requirement (needing less than $5 million) to exit. Investments are usually about $705,000, including $600,000 from the Office of Chief Scientist and the rest from Trendlines. It has 30 employees in Israel, as well as a representative in Beijing.
According to its financial documents, the company had gains of almost $23.5 million in 2013 from change in value of its investments in portfolio companies, and had a net income of $16.7 million.
Right now its principal shareholder is Zeev Bronfeld, a company director who owns 23.15% of Trendlines. Other significant shareholders include D. Todd Dollinger and Stephen Rhodes, both chairmen and CEOs of Trendlines who each own 5.92% of the company.
The IPO prospectus does not give details of how much Trendlines hopes to make or for how much it will sell its shares, but it says the agents will receive a 6% commission of sales of ordinary sales, 7% commission for retail subscriptions and 4% commission on sales to people on the President’s List. It is unclear why Trendlines chose the Toronto Stock Exchange, but two of its directors, Jason A. Saltzman and Charles Freedman, are based in Canada.