The Exclusive Club Opens
The Secret Path to Investing in Technology Companies Just Before Their Major IPO
The opportunity previously reserved only for institutional investors, insiders, and angels—now available for the first time to the general public
So how can you join the “exclusive club” of professional players who pass among themselves, word of mouth, the names of companies whose secret technology has market-disrupting potential?
By: Roni Yagerman, Founder and Partner at EXITEAM
Modi’in, Israel
“This therapeutic solution is so simple and smart that it’s bound to succeed massively on the stock exchange”
This is the thought that kept running through my mind when I was exposed to the technology of VVT Medical, which invented an innovative solution for treating varicose veins in the legs (approximately 356 million people suffer from varicose veins, and nearly half of people over 50).
This technology is so smart and simple compared to all the treatments currently offered by medical giants—so how is it possible that the world waited so long for a genius from Israel who invented a treatment that takes 10 minutes, with no recovery time, no pain, and no side effects to solve it?
I couldn’t help but think to myself that this company could succeed massively on the stock exchange within just a few years”
The Major Problem: The “Exclusive Club” Effect—What Are the Chances You’ll Hear About a Successful Technology Company and Invest in It Just Before the Major Breakthrough?
Until now, investment opportunities like VVT Medical were reserved for a closed circle of investors—friends of the founder from a secret technological unit in the military, institutional investors, investment bankers, angels, and the like. They were the only ones who repeatedly managed to become owners of such companies and sell them after the IPO at exceptionally high profits.
So what’s actually happening there? Why doesn’t the “secret” information reach the general public?
Before the IPO and listing actually occur, the company approaches friends and insiders, and institutional entities such as investment bankers or angels, and raises capital from them at a significant discount from the share price.
In this way, connected investors and powerful entities receive early access to the IPO, which is far beyond the reach of the private investor—and thus “the exclusive club of capital holders” is created.
So is there really a way for a small investor (with a minimum of 130,000 NIS) to enjoy the advantages that until now were reserved only for tycoons and insiders?
If the problem is that information about companies with market-disrupting technology is only circulated among a narrow circle of friends, insiders, and tycoons—then the solution is necessarily to join them.
I am proud to present to you the
“Gateway to the Exclusive Investment Club”
The method that allows the general public, for the first time, to join as partners in Israeli technology companies at a significant discount just before their IPO on the Canadian stock exchange.
The “Gateway to the Exclusive Investment Club” method consists of 7 stages:
“X-Ray Vision”
EXITEAM’s experienced professional team, with many years of evaluating technology companies in various fields, selects the appropriate company.
Establishing an Acquisition Corporation
EXITEAM establishes a dedicated Canadian corporation for acquisition, capital raising, and listing for each of the companies. The significance—increasing the likelihood of the company being listed for trading.
What.
Signing a Letter of Intent for Reverse Merger
The acquisition corporation and the technology company sign a letter of intent document for the acquisition of the technology company by the Canadian corporation.
Preparations for Stock Exchange Listing
EXITEAM and its partners in Canada lead the company through the preparation and listing processes for the Canadian stock exchange, including preparing financial statements and writing a prospectus.
The Exclusive Club Opens
Investors join the acquisition corporation as shareholders. This occurs in parallel with the preparation of the company’s listing processes, managed by the corporation and EXITEAM.
Thus, the opportunity opens for Israeli and Canadian private investors to join and become shareholders together with us in the acquisition corporation in an early funding round at a discount.
Acquisition of the Technology Company by the Corporation and Listing for Trading
Upon completion of listing preparations and the funding round, the letter of intent becomes a binding agreement, and the acquisition corporation acquires the technology company and submits a prospectus to the securities authority in Canada. Upon approval of the prospectus, the merged company is listed for trading.
From this moment, the investor holds tradable shares of the company.
Accompanying the Public Company
EXITEAM continues to accompany the new public company through strengthening and value-enhancement processes.
The Partners
EXITEAM specializes in leading successful Israeli technology companies to public offerings and enables investors to enter as partners just before the IPO.
Chairman of EXITEAM
Over the past 8 years, an investor and business advisor in diverse sectors: medicine, technology, security and cyber, autonomous vehicles, and more.
Was a member of billionaire Peter Lim’s management team (among the leading capital holders in Singapore), advisor to the Singapore government and foreign funds operating there.
Among his recent positions:
Founder and Head of the Communications Branch in the IDF, CEO of EPG from the Keter Group, Director General of the Ministry of Defense.
CEO of EXITEAM
Over the past 15 years, an entrepreneur leading companies to business success.
Expert in establishing and managing companies in Israel and abroad.
Possesses extensive experience in business development and accompanying small and medium-sized companies at all stages of their lifecycle.
Expert in negotiation and business mediation processes. Serves as a director in several private companies.
Investment Banker
Over the past 25 years, an entrepreneur, CEO of technology companies, and investment banker.
Expert in building financing strategies and raising capital for companies and listing them on stock exchanges in Israel and abroad.
Director and financial advisor in several Israeli companies traded on the Canadian stock exchange.
Expert in capital raising through RTO on Canadian exchanges: TSX and CSE.
Raised over $350 million for companies on stock exchanges worldwide.
The Canadian Arm
Leading entrepreneurs and businesspeople. Experts in management, innovation, finance, and the Canadian capital market.
Mark Goodman
Served in various management positions at public companies.
Possesses deep familiarity with the Canadian capital market.
In his most recent role, served as President of DUNDEE CORPORATION (DCA)
Adv. Oded Orgil
Serves as President of the Canada-Israel Chamber of Commerce.
Pioneer and innovator in the financial services industry in Canada.
Founded and led several Canadian public companies.
Northern Paradise: Why Did We Choose Canada Specifically?
No less important than the wisdom to identify technological opportunities before everyone else, it is also important to identify capital markets that can give these technology companies enormous advantages.
The Canadian capital market provides enormous advantages to small and medium-sized technology companies from Israel, and only a few in Israel are aware of these advantages, which can make investments in the technology companies we select particularly successful:
1 | A Thriving Capital Market
The Canadian market is one of the only markets in the world that has (in Toronto alone) 3 stock exchanges dedicated to small and medium-sized companies.
2 | Private Investors Accustomed to High Risk:
Canada is the land of endless resources: lithium, gold, oil, and therefore most of the Canadian capital market consists of thousands of public companies related to natural resources.
Searching for natural resources is a zero-sum game—either we found the quarry or we didn’t. In other words, Canadian capital market investors are very accustomed to risk—and high potential. Losing is not terrible in their eyes, because they know that even if they lose in one or three companies, they will earn much more in another company that succeeds in finding gold, for example, and will soar by hundreds of percent. The significance is that investing in technology companies suits them like a glove, because the risk in them is lower compared to a bunch of quarries—but the “explosion” potential is similar.
3 | The Canadian capital market is expanding from natural resource companies to technology companies:
In the past decade, Canadians who see that the entire world is moving to technology have begun to set themselves the goal of bringing more technology companies to Canada—meaning there is very great openness to technology.
4 | Israel has been designated by Canada as a prominent destination for innovative technologies:
Since 2016, the Canadian exchanges, especially the TSXV and CSE, have marked several selected countries around the world to conduct “market education” in order to invite local companies to list in Canada. One of the places chosen is Israel. Therefore, there is a great deal of joint activity between these exchanges and Israeli companies.
They marked Israel. “Israel Hayom,” October 27, 2017
5 | Favorable Legal Regime
The Canadian regulator is very pro-entrepreneurial; there is regulation, but there is a lot of room for creativity and doing things not only in black and white but in all sorts of different and unusual ways, which makes it easier for companies.
6 | The Price
The costs of listing processes in Canada for small and medium-sized companies are much more convenient and cheaper than in other markets.
7 | Every Family Has a Broker
Canada is a capital market with the highest rate of households participating directly in the capital market—approximately 34% of all Canadian households invest directly in the capital market.
TSXV
CSE
Interested in joining the exclusive secret club of tycoons and institutional investors? Fill in your details and our representative will contact you:
The “X Factor”: How Do We Choose the Companies We Will Invest In?
Here’s a fact that knocks quite a few of our clients off their chairs: it takes us no less than 8 months to select a company! Our team examines 4 threshold criteria:
Technology Assessment:
We verify that the company’s technology has significant superiority over similar technologies in the field. We have analysts who research and examine what is happening in the company’s specific market and assess the competitors.
Human Capital:
First, we check who the CEO is, who the CFO is, who is in management, who is on the board of directors, who are the investors from previous rounds? We have in our portfolio behind our companies amazing Israeli and international investors that it is an honor to invest with.
We Ensure the Company Already Has Real Commercial Sales:
In other words, this is not a “startup” with an idea that exists only on paper, but rather proven technology that is already being sold and has expansion potential to new markets.
We Check That the Company Is Not Only Selling but Is in a Growth Process:
We ensure the company is growing year over year.
All of these are, as mentioned, only threshold filters.
The Next Stage:
Due Diligence
After a company passes these filters, we conduct due diligence through one of the 3 leading research and analysis firms in Israel.
The firm conducts the examinations over several weeks. They examine the company in depth and issue us a detailed report, which goes to the consideration and decision of the investment committee.
(We note that although we conduct extensive examinations of the company, they are primarily performed for us to decide whether to accompany the company, and we recommend that every investor also conduct their own examinations before making an investment decision and even consult with relevant parties for this purpose).
The Investment Committee:
The investment committee is composed of EXITEAM partners in Israel and Canada, as well as a representative from the research and analysis firm. At the end of a round of discussions, a decision is made whether the company is suitable for accompaniment and ready for an IPO and listing on the stock exchange.
“Doing Good for the World”: Suitability for the Canadian Market
Every wedding needs two sides: it’s not enough that we find the company is excellent; we must also ensure that the average Canadian investor will know how to “digest” it—and will want to invest in it.
This is why we have partners “on the ground” in Canada, meaning partners who live, breathe, and experience Canada every day, and can tell us whether the company has a chance to break through big in the local market.
So which companies have a chance? In a nutshell, Canadians very much like investments that come to do good for the world and solve critical problems for millions of people around the world, for example:
Companies in the agriculture sector
FoodTech
Education (EdTech)
Companies that solve basic problems in medicine—such as medical aids, quality of life, aesthetics
AgriTech—smart agriculture and gluten-free products, for example
For Whom Is the “Gateway to the Exclusive Investment Club” Method Suitable?
Someone who has capital of 130,000 shekels (50,000 Canadian dollars) available for investment, not as “last money.”
Someone who has already invested in the past, is familiar with the capital market, and is looking for the next big opportunity.
Someone who wants to invest without bureaucratic headaches: EXITEAM assists and guides the investor on how to navigate the administrative maze (how to transfer the money), legal, and tax matters.
Someone looking for a relatively fast track: unlike real estate investments or a long-term investment portfolio, our investment model is built so that profit potential is expected to materialize within two to three years.
Someone looking for a unique model that increases profit potential and reduces risk: an acquisition corporation allows, on one hand, joining as partners in the company at a significant discount just before the IPO and listing, and on the other hand, the risk decreases because if the investment in the company fails—the corporation can invest in another company.
How Does the Acquisition Corporation Model Reduce Risks?
One of every investor’s concerns—what will happen if they get stuck with shares in a private, non-tradable company. This risk simply does not exist in the acquisition corporation model.
The reason: even if the Israeli company is not listed for trading—the corporation is free to go to listing with another company.
Does the “Gateway to the Exclusive Investment Club” Method Really Increase the Likelihood of a Successful Investment That Soars to New Heights on the Stock Exchange?
According to Israeli law, we are not allowed to discuss returns, so we simply let our companies speak for themselves, and we leave the exact numbers for you to check on your own.
Our Diamonds: Some of the Companies We Have Accompanied So Far—
Seegnal
Seegnal – A groundbreaking innovative platform that helps doctors match medications to patients and prevents errors
Pro-Core
Pro-Core – Development of a gel that heals cartilage erosion and joint diseases. The gel provides immediate pain relief
Water Ways
Water Ways – Advanced solutions for smart irrigation in global agricultural projects
Nanopass
Nanopass – Breakthrough technology for efficient and painless injections, suitable for a wide range of treatments in medicine and aesthetics
Nurexone
Nurexone – Development of a groundbreaking biological approach that enables spinal cord injury victims to regain function, perhaps even walk again
Open Investment Opportunities
Pelican better foods
Pelican better foods – A FoodTech company operating in a rapidly growing field. Development and marketing of unique beverages and dietary supplements: protein-enriched, gluten-free, animal product substitutes, some cannabis-based
VVT Medical
VVT Medical – Innovative technology for advanced and effective treatment of venous insufficiency, a problem affecting half of the world’s adults