The 2021 market sensation will delist in January as it shifts its focus to Nasdaq and explores a new strategy centered partly on data centers.
After wiping out 99% of its value, the stock market sensation of 2021 is set to delist from the local exchange. Foresight Autonomous Holdings has informed investors that it will voluntarily delist its shares from the Tel Aviv Stock Exchange, with the final day of trading scheduled for January 1, 2027. The shares will be formally delisted on January 4, 2027, after which Foresight will trade exclusively in New York.
For Israeli investors, the delisting does not void their ownership of the company. Anyone currently holding Foresight ordinary shares on the TASE will be able to convert them into the company’s American Depositary Shares (ADSs), which will continue to trade on Nasdaq under the ticker FRSX. The ADSs currently represent 90 ordinary shares each. To continue trading Foresight shares via Nasdaq, investors will generally need to arrange the conversion through their bank or broker. The process involves depositing the ordinary shares into the Israeli custodian account of Bank of New York Mellon, the depositary for Foresight’s ADS program. Foresight said no fractional ADSs will be issued in connection with the conversion, with any fractional holdings handled according to TASE rules.
Foresight is an Israeli technology company that develops 3D perception systems and cellular-based applications for markets including automotive, defense, autonomous driving, agriculture, heavy industrial equipment, and UAVs. Its technologies include 3D vision systems and accident-prevention solutions based on cellular networks and artificial intelligence.
Foresight, which has no controlling shareholder, reached its peak valuation in February 2021, when its market capitalization climbed to approximately NIS 2.4 billion ($785 million). The surge was driven by expectations that the company’s technology would be adopted by major global automakers. However, Foresight failed to secure significant partnerships and recorded cumulative losses of NIS 270 million over the past five calendar years.
The company currently holds approximately NIS 21 million in cash, alongside shareholders’ equity of another NIS 21 million. Foresight’s shares plunged nearly 7% last Thursday, and its market capitalization has since fallen to approximately NIS 17 million ($5.6M), essentially the valuation of a shell company, or a publicly traded company with little or no operating business.
In September, Foresight announced that it was exploring expansion into new technology markets, including AI-based technologies, cybersecurity, and data centers. Later that month, it announced plans to acquire a Polish company that develops server farms, although the acquisition price has yet to be determined.
The company said the decision to leave the TASE is intended to reduce the costs and administrative complexity associated with maintaining a dual listing and allow it to focus its investor-relations and capital-markets resources on Nasdaq, where most of the trading in its securities already takes place.
“This is a natural next step for Foresight and consistent with the strategy we have begun to execute, including our recently announced plans to enter the European data-center development market,” CEO and Chairman Haim Siboni said.
Foresight said the voluntary delisting will not affect its Nasdaq listing or its reporting obligations under U.S. securities laws. The company will continue filing reports with the U.S. Securities and Exchange Commission and making public disclosures in accordance with Nasdaq and U.S. securities laws.
