The Securities Authority is suspending EPM's IPO, in which Keshet and Reshet are partnerships

The Securities Authority has stopped the issuance of the cannabis company EPM, which is published by Prof. Zeev Rothstein.

The IPO was halted after a special and unusual EPM investor proceeding, conducted through a Barter deal for broadcast time from Arc 12 and Network 13

Liat Ron

10/04/2022

Sunday, 10 April 2022, 12:05 Updated: 13:21

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During the first period in which the commercials were broadcast on television, the PA appeared to ignore the manner in which the IPO was conducted, but when EPM began to deviate from the initial wording, both above the television screens and on the Pand It website, the PA decided to intervene

The Securities Authority on Thursday suspended for two weeks the issuance of the cannabis company EPM, which Prof. Zeev Rothstein publishes on television together with the company's CEO. 13 for a share in the company, and through the "Fund-It" website, an investment platform in collaboration with IBI workers and without the use of underwriting companies as is customary

. Which provoked the Securities and Exchange Commission, but a number of seemingly improper measures the company has taken to encourage investment, such as failing to provide transparent information about costs to be charged, publishing investor names and stating the amount raised so far, measures more reminiscent of crowdfunding platforms than stock issues.

During the first period in which the commercials were broadcast on television, it seemed that the PA ignored how the IPO was conducted, but when EPM began to deviate from the initial wording, both above the TV screens and on the

Pand It website, the PA decided to intervene.

Innovative shares in the run-up to the IPO, not through underwriters, but in television commercials that initially encouraged the public to read the prospectus and invest in the company. The regulator.

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Invested in the company.

Keshet (Photo: Ortal Dahan)

The investment could only be made through the Fund-It website.

In the last week, EPM began publishing on the website how many investors have invested in the company so far, about 600 in total, out of the total amount of money raised, about 18 million out of 44 million that they sought to reach in the IPO, the names of some investors, omitting the fact that the drug has not been tried For humans, which can take many years to be officially approved, the costs can run into the hundreds of millions of dollars and the vast majority of newly developed drugs fail

.

Immediately upon receiving the warning from the Securities Authority, already on the eve of the attack in Dizengoff, the advertisements were changed and a warning was added about the loss of investment and the details of the amount of investors, their names and the amount collected were deleted from the Fund-It website.

Medical cannabis (Photo: screenshot, screenshot)

The Securities Authority suspended the issue for 14 days, during which the company was prohibited from raising investors, and was instructed to amend the prospectus and call each of the 600 investors, make sure they read the amended prospectus and ask if they are still interested in investing in the company. The IPO will then be open for another 5-7 days and after that it will close.

Under these conditions, it is doubtful whether EPM will be able to raise the amount it is aiming for. Ya will refine the guidelines and prepare for such similar issues in the future.

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