Gadfin’s high-tech drones to hit Nasdaq in merger with Izhar Shay’s SPAC
Gadfin’s high-tech drones to hit Nasdaq in merger with Izhar Shay’s SPAC
According to estimates, Gadfin's value upon entering Nasdaq will range between $100 million and $200 million.
Izhar Shay's Israel Acquisition Corp. is set to merge with Gadfin, an Israeli company that develops delivery drones. According to estimates, Gadfin's value upon entering the Nasdaq will range between $100 million and $200 million, a figure expected to be finalized in the coming weeks.
SPACs (special-purpose acquisition companies) are empty-shell companies that raise capital on Wall Street with the intention of merging with operating businesses, thereby taking them public. SPACs were highly popular during the market bubble in 2021, but their value has sharply declined over the past two years, with many mergers resulting in disappointing performance and negative returns for investors. Issuing through a SPAC merger provides startups with a shortcut to the stock market.
Gadfin Aero-Logistics Systems was founded in 2018 by aerospace industry veteran Eyal Regev, who serves as CEO and Chairman. Co-founders Ilan Yuval and Ran Kleiner are no longer with the company. One notable board member is former Israeli Air Force Commander Eitan Ben Eliyahu. To date, Gadfin has raised only $7 million in a Series A round in 2022 and has also received several development grants.
The company has developed hydrogen-powered drones capable of flying at speeds of 100 km/h and carrying loads of 3 to 10 kilograms over long distances of more than 100 kilometers. Gadfin's drones can take off and land vertically, then spread their wings to fly horizontally. According to the company, its drones are quiet and durable, even in harsh weather conditions.
Gadfin initially focused on delivering medicines, medical equipment, food, and even organs for transplantation. In the past, it signed an agreement with "Sarel," an Israeli medical logistics company, to transport medical products from its logistics center in Netanya to hospitals throughout Israel. During the COVID-19 pandemic, Gadfin's drones were considered for delivering medical tests to remote areas. The market for unmanned aerial vehicles used in supply and logistics is growing rapidly worldwide.
Izhar Shay, a former Israeli Minister of Science and Technology, who tragically lost his son Yaron in Hamas’ terrorist attacks from Gaza on October 7, 2023, raised the SPAC earlier in 2023 and is now approaching the deadline by which he must return the money to investors if no merger is completed. The SPAC raised $143 million in total.
Several notable figures are involved in the SPAC, including CEO Ziv Elul, Daniel Recanati, Sharon Barzik-Cohen (partner and CFO of the Qumra VC fund), and Roy Zisapel, CEO of the tech company Radware.
In October 2023, the SPAC had signed an agreement to merge with another Israeli company, Pomvom, which develops digital photography solutions for theme parks, at a valuation of $125 million. However, Pomvom, which had been listed on the Tel Aviv Stock Exchange with a market cap of only NIS 41 million, saw the merger deal canceled in August due to "a change in market conditions."
