MIRA INFORM REPORT

 

 

Report Date :           

02.04.2011

 

IDENTIFICATION DETAILS

 

Name :

ALMA LASERS LTD.

 

 

Formerly Known As :

M S Q LTD

 

 

Registered Office :

P.O. Box 3021, 14 Halamish Street, Northern Industrial Zone, Caesarea 30889

 

 

Country :

Israel

 

 

Date of Incorporation :

05.10.1999

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Developers, Manufacturers, Exporters and Marketers of laser, light-based and radiofrequency devices for aesthetic and cosmetic applications

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

US$ 500,000

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear 

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

Israel

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name & address 

 

ALMA LASERS LTD.

Telephone    972 4 627 53 57

Fax              972 4 627 53 68

P.O. Box 3021

14 Halamish Street

Northern Industrial Zone

CAESAREA 30889-ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-283617-2 on the 05.10.1999.

 

Originally established under the name M S Q LTD., which changed to the present name on the 16.10.2005, after U.S. company ORION LASERS merged into subject.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 14,000,000.00, divided into -

                1,022,828,000 ordinary shares (157,794,500 shares issued),

                377,172,000 preference A1 shares (issued), all of NIS 0.01 each,

of which shares amounting to NIS 5,349,665.00 were issued.

 

 

SHAREHOLDERS

 

1.    AESTHETIC ACQUISITION B.V., of the TA ASSOCIATES International Investment Fund, holding all preference A1 shares and 7.9% of ordinary shares issued,

2.    Ziv Karni, holding 36% of ordinary shares issued,

3.    DAMSI INVESTMENTS LLC., a foreign company, holding 15.3% of ordinary shares issued,

4.    GLOBAL HEALTHCARE SERVICES, a foreign company, holding 11.5% of ordinary shares issued,

5.    Yoav Avni, holding 7.7% of ordinary shares issued,

6.    Nadav Bayer, 3.8% of ordinary shares issued,

7.    Yair Mazliah, 3.8% of ordinary shares issued,

8.    Mauro Wjunski, 2.8 of ordinary shares issued,

9.    LAHAV, LITBAK-ABADI, Attorneys, 2.7% of ordinary shares issued,

10.   David Paul Page, 2.3% of ordinary shares issued,

11.   Antonio Skalmente, 1.9% of ordinary shares issued,

12.   Ms. Miriam Vinseko, 1.9% of ordinary shares issued,

13.   Yivgeni Kodritzky, 1.5% of ordinary shares issued,

The remaining shares are held by 4 indeviduals holding less than 1% each.

 

 

In March 2006 TA ASSOCIATES International Investment Fund, of the USA, acuired 65% of subject's shares from its other shareholders, in consideration of US$ 90 million, according to a company value of US$ 140 million.

 

 

DIRECTORS

 

1.     Dr. Ziv Karni, President and General Manager,

2.     Howard Kelly,

3.     David Lang,

4.     Ajit Nedungadi.

 

 

BUSINESS

 

Developers, manufacturers, exporters and marketers of laser, light-based and radiofrequency devices for aesthetic and cosmetic applications.

 

Almost 100% of sales are for export, worldwide (USA, China, India, Brazil, Argentina, Russia and more).

 

Operating from rented premises, on an area of 3,500 sq. meters, in 14 Halamish Street (and not Hatarshish Street), Northern Industrial Zone, Caesarea, and from an additional rented premises, on an area of 500 sq. meters, in Souhtern Industrial Zone, Caesarea. Also operating from subsidiary’s premises in Buffalo Grove, Illinois, USA.

 

Having 115 employees in Israel and additional 40 employees in US subsidiary.

 

 

MEANS

 

According to a report from June 2009, subject raised to that date US$ 150 million.

 

In January 2008 it was reported that subject is intending an IPO on NASDAQ, according to a value od US$ 200 - US$ 250 million. Eventually the IPO did not take place.

 

Subject is an “Approved Enterprise” and as such enjoys tax benefits and State incentives.

In July 2004, the Israeli Investment Center (IIC) approved a US$ 85,000 investment plan for the expansion of subject’s plant.

 

According to a report from January 2008 subject received to that date from the IIC the total sum of US$ 511,000.

 

There are no charges registered on the company's assets.

 

 

 

ANNUAL SALES

 

According to a report from December 2008, subject's 2007 first 9 months sales were US$ 62 million, with a net profit of US$ 15.3 million.

 

Later sales figures not forthcoming.

 

 

OTHER COMPANIES

 

ALMA LASERS INC., a US marketing and distribution subsidiary.

 

TA ASSOCIATES International Investment Fund, of the USA, one of largest private equity firms in the world. Has a US$16 billion capital base, involved in investments of over 400 companies in the world.

 

Dr. Ziv Karni, shareholder No. 2 has been also involved in other companies.

 

 

BANKERS

 

·         The First International Bank of Israel Ltd., Herzliya Pituach Branch (No. 051), Herzliya.

·         Bank Hapoalim Ltd., Hadera Business Branch (No. 072), Hadera.

·         Mizrahi Tefahot Bank Ltd., Tel Aviv Central Business Branch (No. 409), Tel Aviv.

 

 

CHARACTER AND REPUTATION

 

In March 2008 LUMENIS LTD. (developers, manufacturers, exporters and marketers of laser and light-based technologies for aesthetic, surgical and ophthalmic applications) sued subject for the sum of NIS 200 million, claiming that subject's 4 founders (Ziv Karni, Yoav Avni, Nadav Bayer and Yivgeni Kodritzky) who worked in LUMENIS prior to establishing subject, stole LUMENIS's core technology and established subject.

 

In November 2010 it was reported that subject and LUMENIS settled their patent claims and counterclaims in the U.S. District Court in Chicago. Under the settlement agreement, LUMENIS granted subject a license to its complete patent portfolio for use by subject with respect to all of subject’s products in the aesthetic field. Subject will pay LUMENIS US$ 6.5 million for the license.

 

Apart of that, nothing unfavorable learnt.

 

Subject's officials refused to disclose financial data.

 

Subject is certified according to the ISO 9001:2000, ISO 13485:2003, MDD 93/42 Annex II standards, complies with the GMP standards. All medical systems comply with the requirements of the EU Medical Devices Directive. Also having FDA approvals for several of their products.

 

Dr. Ziv Karni is among the pioneers in the laser technology fields.

 

In July 2005, it was reported that subject won the 2004 exceptional exporter award in the Small Exporters category from the Israeli Export Institute.

 

In September 2006, it was reported that the company is a winner in the 2006 Deloitte Technology Fast 50 and was ranked 20th in the EMEA region.

 

According to a report from June 2009 subject sold over 3,300 systems.

 

Subject also manufactures a system to dissolve fat cells through sound waves. According to a report from September 2009 the Slimming market is valued at US$ 5 billion.

 

According to researches, as published by the Israeli Ministry for Industry & Trade in 2009, the global market for equipment and devices for aesthetic skin treatments is estimated at US$ 800 – US$ 900 million per annum, and Israel is considered a major source for this branch, with some 30% share.

 

Israel is considered one of the leading countries in the world in terms of investment in the Life Science and Biotechnology industry. In 2008 Israel was ranked 4th in investments in Biotechnology/GDP, while being among the leaders in the areas of investments and patents in Medical Device and Bio-Pharma fields.

 

During 2008 total of US$ 87 million were given to local Life Science firms by the Chief Scientist Office.

 

According to the Israeli Export Institute, 2008 exports of medical and electronic equipment and instrumentation (excl. medical software) amounted to US$ 1,500 million, similar to 2007, which comes after several years of continuing growth. Sales for export fell in 2009 by some 15% to around US$ 1,300 million as part of the effects of the global economic crisis, and fell down further by some 0.5% (though still some recovery overall) in 2010 1st half (comparing to 2009 1st half).

 

In the whole Life Science industry 2009 sales for export by local companies reached US$ 6 billion, 8% decrease from 2008.

 

Geographical division of the export is mainly to the USA.

 

 

SUMMARY

 

Notwithstanding the refusal to disclose financial details, considered good for trade engagements.

 

Maximum unsecured credit recommended US$ 500,000 (subject may be worthy higher credits, however do not have financial data to back that).

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.65

UK Pound

1

Rs.71.93

Euro

1

Rs.63.24

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.