Significant shareholders in Israeli-based and Swiss-listed medical technology company Card Guard Scientific Survival (SWX:CGSZ) were not adversely affected by the company¿s bad news this morning. They had already sold $140 million in shares in the company over the past two years when it today reported lower-than-expected Q4 revenue and projected the weakness will continue throughout 2002.
The telemedicine company is losing altitude at a dizzying 35% on the Zurich exchange and is now, at $25.7, 60% below its 52-week high.
CFO Dan Gazit said today ¿I don¿t get involved in everything related to the share price behavior, but we did expect the share to take a hit.¿ CardGuard announced its Q4 results were hit hard by the economic climate and it will report just $12 million in revenues, down a dramatic 60% from Q3. All of this will lead to negative cash flow on the year.
However, if financial results for this year constitute a disappointment, the company can boast of success in another arena. Parties at interest in the company, including Shrem, Fudim, Kelner and Eurpean funds, sold 2.4 million shares valued at $116 million ro 23% of the company in tender offers. The shares were sold to investment bank UBS Warburg for its customers.
Today, foreign investors hold 95% of the company, while CEO Jacob Geva holds the remaining 5%. When the company went public in 1999, substantial shareholders sold 1.25 million shares for $20 million, bringing their total profit-taking run up to $136 million to date. Had they cashed in today, after the price plummeted, the share bloc would be worth just $94 million.