Debt-laden Gigantic sold for $360K after raising $19M to develop Clawee app
Debt-laden Gigantic sold for $360K after raising $19M to develop Clawee app
The court trustee favored Fankong Global’s offer to save the Israeli gaming company.
The trustee of Israeli gaming company Gigantic, which has accumulated debts totaling 39 million shekels (approximately $10.8M), has submitted a plan to the District Court to sell the company to the Cyprus-based Fankong Global.
Gigantic developed the Clawee app, which allows users to remotely control real claw machines located at the company's offices in Petah Tikva. The users control the machines via live video and can win prizes that are shipped to their homes.
In November, the company filed a request with the District Court to freeze proceedings and appoint a temporary trustee to facilitate its rehabilitation. The court approved the request and appointed Attorney Gil Oren as the temporary trustee. Most of the company’s debts are owed to Bank Hapoalim.
The trustee presented two alternative plans to the court. The first proposed the sale of Gigantic’s shares to Fankong Global, while the second suggested selling the company’s assets. Fankong Global was the only entity to express interest in acquiring Gigantic, offering two options: purchasing all of the company’s shares for NIS 1.3 million ($360,000) in a share transaction or making a cash payment of NIS 1.075 million. The trustee recommended the first option, arguing it would enable Gigantic to undergo financial rehabilitation and be sold debt-free. He also noted that this approach offers a higher consideration and a faster regulatory approval process with the Innovation Authority.
Gigantic, which began operating in 2017, was founded by Ron Brightman (former CEO) and Oded Frommer. The two are no longer active in the company but retain shares. Over the years, Gigantic raised approximately $19 million from investors, including MoreTech Ventures, Vgames, and NFX Capital. At its peak, the company employed over 120 people, including development teams in Israel and Ukraine. Today, it employs only about 16 staff members.
