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Jigami is shutting down

Startup formerly called Net2Wireless can't find funds to stay afloat, today petitioned court to appoint receiver

The management of Jigami announced today that it has advised the startup's board to dissolve the company through the courts.

Jigami, formerly known as Net2Wireless, petitioned the Tel Aviv District Court today to appoint a receiver after its managers failed to secure more financing to keep it afloat.

In May Jigami named new managers and directors, who tried to cut the company's spending and scale back its commitments while seeking out financing resources.

The company, chaired by David Rubner, had developed a switch that accelerated data communications over wireless networks to 10 times the speeds customary today.

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Jigami and its chairman are still embroiled in a lawsuit filed by shareholder Alfred Akirov and his company, Alrov. The plaintiffs allege that they invested in the company based on false presentations made by Rubner. The courts recently threw out their petition to place a lien on assets held by Jigami and Rubner.

Earlier in its career Jigami, then called Net2Wireless, had been supposed to merge with Nasdaq-traded Sensar Corporation. The merger never came off, but while Sensar traded as though it was a done deal, its market cap soared to a peak of $2.5 billion.