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July 29, 2021
Comments and Insights on the Capital Structure of Startup Companies
In the regular corporate world, the capital structure of a company usually means the ratio between the company’s equity (money the company’s owners invested in it) and debt capital (external funding injected into the company by banks and other loans).
For technology companies, however, the term “capital structure” usually refers to the division of the company’s ownership among the entrepreneurs and investors subsequent to the investment rounds in the company.
Thus, holding 50 shares of a regular company that has 1,000 issued shares represents ownership of 5% of the company’s shares and entitlement to receive 5% of its distributable profits.
However, if you hold 50 shares of a tech startup company that has 1,000 issued shares, this does not necessarily mean you are entitled to receive 5% of the proceeds in the event of an “exit” and the startup’s sale to a third party. Over the years, investors and entrepreneurs in startup companies have developed ownership structures that bear no resemblance to the ownership formula used in “regular” companies.
July 26, 2021
Calcalist Interview on White-Collar Crime
Several of Israel's leading lawyers in the field of white-collar crime and criminal law were interviewed by Calcalist, including experts from our firm. We addressed the core issues of the field and the impact of COVID-19, along with a forecast for several ongoing major cases.
July 21, 2021
Barnea Represents Azrieli Group in ILS 2.8 Billion Acquisition of Norwegian Data Center Company
Our firm represented Azrieli Group, the largest income-producing real estate company in Israel, in a share purchase transaction of Green Mountain for ILS 2.8 billion. The company operates three server farms in Norway and holds contracts with a total volume of 24 megawatts.
July 20, 2021
Barnea Represents Azrieli Group in Franchise Agreement with AllSaints
Our firm represented Azrieli Group in the acquisition of the franchise for leading British fashion brand AllSaints. Adv. Ariella Dreyfuss advised Azrieli on the franchise agreement. The first store will launch in August 2021.
July 19, 2021
The Demand for Directors in Publicly Traded Companies
The demand for directors in publicly traded companies is increasing in light of the growing wave of IPOs on the Tel Aviv Stock Exchange. An expert on the capital market, Adv. Micky Barnea was interviewed on the subject by Globes. He explained the significance of the director position in companies, as well as the role's related risks and responsibilities.
July 18, 2021
Expert Panel: Challenges of Entering the US Market
Adv. Daniel Lorber, who specializes in high-tech and startups, will participate in an expert panel on the challenges of entering the US market. This subject is particularly relevant for young startups who have found such a move difficult.
July 17, 2021
Israeli-UAE Tax Treaty
On May 31, 2021, Israel and the United Arab Emirates signed a tax treaty. This is the first tax treaty between the states. It is expected to go into effect on January 1, 2022, after passing the necessary ratification processes in the Knesset and the government.
July 13, 2021
Real Estate Transactions Using Digital Currencies – Regulatory Challenges
The volume of real estate transactions incorporating digital currencies is expected to grow in the coming years, especially among young, wealthy, tech-savvy professionals. We were interviewed by Globes on the trend, noting the regulatory challenges that exist in these types of transactions.
July 13, 2021
Implications of European Whistleblower Protection Directive on Israeli Companies
By October, companies in the European Union employing at least 50 employees will be required to operate an internal reporting system for reporting misconduct that may indicate compliance violations. Furthermore, all companies in the EU, regardless of size, will be required to ensure the protection of whistleblowers from all types of retaliation.
The EU Whistleblower Protection Directive originally came into force in October 2019. It gave EU member states two years to prepare to incorporate the directive into their national legislation. Prior to the enactment of the directive, no uniform binding legislation applied to all EU member states and only 10 member states had enacted national legislation in this regard. The upcoming inception of national whistleblower protection laws throughout the EU will naturally trigger a ripple effect.
July 13, 2021
Webinar: Responsibility of Compliance Officers in Organization
The Compliance Forum of the Association of Corporate Counsel in Israel hosted a webinar this morning on the responsibilities of compliance officers in organizations. As part of the webinar, we discussed new trends and developments, as well as the normative basis for imposing personal responsibility on compliance officers in organizations.
July 8, 2021
Israel Securities Authority: Guidelines for Discussions with Investors Prior to Publication of a Prospectus
A wave of IPOs continues to flood the market, prompting the Israel Securities Authority to publish a new staff position paper discussing three key topics.
July 6, 2021
Warning, Border Ahead? Expanding Israeli Courts’ Jurisdiction over Foreign Defendants
In early June 2021, the Tel Aviv-Yafo District Court handed down an important precedential ruling. The ruling expands the identity of an authorized agent, i.e., the entity to whom a statement of claim may be served and that thus subjects a foreign defendant to the jurisdiction of the Israeli court.
July 5, 2021
Shapir Group Acquires Lipsker for ILS 32 Million
Adv. Micky Barnea, Adv. Ilan Blumenfeld, and Adv. Daniel Kleinman represented Lipsker, an Israeli company specializing in geotechnical works, in its ILS 32 million sale to Shapir Engineering and Industry, a leading Israeli construction, development, and infrastructure company. Our legal services included advising on antitrust matters.
July 1, 2021
Options to Buy Shares in a Company – Important Things to Know
Offering options to buy a company’s shares has become a legitimate benefit even for companies not in the high-tech field. As experts in the field, we were interviewed by Globes on what it means to receive options in a company.
June 30, 2021
Older Worker Challenges in Reentering the Employment Market
We are on the cusp of a challenging period, with hundreds of thousands of jobseekers trying to reenter the employment market. For many of them, especially older workers, this is a frustrating task. Adv. Netta Bromberg, the head of our Employment Department, was interviewed by the "Tzeva Hakesef" radio program about the legal aspects of employing workers aged 55 and up.
June 28, 2021
Webinar: Contacting Investors – Do's and Don'ts
The Israel Hedge Funds Association (IHFA) is hosting the webinar "Contacting Investors – Do's and Don'ts." As part of the webinar, we will discuss the legal infrastructure required for reaching out to investors.
June 27, 2021
Representation in "Pancake House" Family Business Dispute
A dispute between the family of the founder of the Pancake House chain has recently made headlines. The dispute erupted when one of the founder's sons accused his nephew (the founder's grandson) of violating the chain's trademarks by launching a new Tel Aviv venture called "TLV Pancake House" as a continuation of his grandfather's legacy. Adv. Eyal Nachshon and Adv. Naama Moshe are representing TLV Pancake House and the founder's grandson in the legal proceedings.
June 24, 2021
Barnea Represents Danel Group in Investment in Medical Technology Company
Adv. Micky Barnea and Adv. Itay Gura represented Danel, a human resources, nursing, and medical services company, in its USD 22 million acquisition of 22% of Aviv Scientific, a leader in improving brain performance and treating the aging process.
June 22, 2021
Dual-Listed Companies – Israeli Legal Liability for Reporting
The Tel Aviv District Court recently handed down a ruling in the Ceragon Networks case. The ruling states that dual-listed companies may face exposure to lawsuits based on the liability rules under Israeli law.
June 21, 2021
M&A and Energy – Seven Tips for Israeli Energy Companies Who Wish to Expand Overseas
In 2020, clean energy companies led over 25% of all IPOs in Israel. With such monetary amounts being raised on the TASE, many clean energy entrepreneurs have turned their eyes to foreign markets to develop and expand their industry, especially in Europe and the United States.
Here are seven tips for Israeli companies who wish to plan their entry into new energy markets overseas.