Razor Labs cuts deal with global mining giant for up to $31 million
Razor Labs cuts deal with global mining giant for up to $31 million
The company traded on the Tel Aviv Stock Exchange will receive a guaranteed return of $19 million in a five-year contract; Razor Labs shares responded by soaring 304% to a value of NIS 73 million ($19 million).
Razor Labs, an Israeli AI company traded on the Tel Aviv Stock Exchange, announced today the signing of the most significant agreement in its history. The company will provide licenses for its technology to one of the world's mining giants - whose name has not been disclosed - for an amount of up to $31 million.
Of the amount, approximately $19 million is guaranteed to the company in a five-year contract and the rest is contingent on the extension of the agreement. The value of the company, which stood at NIS 18.1 million on the eve of the transaction, jumped by 304% today and stood at NIS 73.4 million at the end of the trading day.
1 View gallery
Razor Labs leadership (from right) CEO Raz Roditti. CTO Michael Zolotov, CSO Ido Rozenberg CSO
( (Photo: Razor Labs))
The company was issued in 2021 and raised NIS 100 million based on a value of about NIS 500 million, so so far it has lost most of its value and investors have not profited from it. Razor Labs finished the first half of the year with revenues of only NIS 2 million.
The sites of the company that purchases the licenses are scattered in Australia, South Africa, and the USA. According to Razor Labs’ report, the order includes the provision of software licenses, implementation services, and the purchase of hardware for the client's 14 mining sites.
As part of the licenses that the company will provide, it will process information from dedicated hardware equipment according to a specification that includes up to 600 sensors and other related hardware items for each site. The total cost of the licenses is approximately $3.3 million per year.
The customer will purchase hardware equipment from the company, mainly sensors and related equipment required for connecting the customer's machines to the product and producing the required data, where after installation, the customer is responsible for ensuring the care and maintenance of the equipment.
The Razor Labs systems read the data from the various sensors and prevent and warn of possible malfunctions. The company adds that the customer may order from the company implementation services of the hardware equipment at the mining sites - the customer can choose implementation by the company or by its contractors to prevent installation failures. Razor Labs estimates the expected return for the implementation services at $5.6 million.
The founders of the company and its main shareholders are the chairman and CEO Raz Roditti, Michael Zolotov, and Ido Rozenberg (13%). The rest of the shares are held by the public and Altshuler Shaham. Other institutions that previously owned the company's shares are no longer shareholders in it.
