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Shefa Gems posts big annual loss on costs of becoming cash shell

17th Jun 2022 09:23

(Alliance News) - Shefa Gems Ltd on Friday reported a massively widened loss for 2021, due to amortisation costs related to the Israeli firm becoming a cash shell.

Shefa's loss in 2021 widened to NIS62.7 million, about GBP14.7 million. In 2020, its loss was NIS4.0 million, about GBP940,000. Amortisation of assets for exploration came at a cost of NIS58.6 million, compared to nothing in 2020 and NIS2.4 million in 2019.

In August of last year, shareholders approved the former gemstone miner becoming a cash shell "seeking acquisition opportunities in the web technology and software space", Shefa Gems explained. "It was decided to transfer all the company's exploration and mining assets to the company's fully owned subsidiary, Shefa in Israel Ltd," it explained.

"The company has currently not identified a suitable acquisition target but will particularly focus on the key areas of high growth delivering digital services to consumers in areas such as leisure, financials, e-commerce, gaming, as well as disruptive technologies such as blockchain and crypto currencies. In addition, the company will also look at potential targets in the software space," Shefa Gems said.

Shefa Gems shares were untraded at 0.32 pence each in London on Friday morning.

By Tom Budszus; [email protected]

Copyright 2022 Alliance News Limited. All Rights Reserved.

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