Filed Pursuant to Rule 424(b)(5)
Registration No. 333-284219
PROSPECTUS SUPPLEMENT
(To Prospectus dated January 21, 2025)
SUPERCOM LTD.
545,454 Ordinary Shares
We are offering 545,454 ordinary shares (the “Shares”), par value NIS 50 per share (“ordinary shares”), directly to one or more institutional investors pursuant to this
prospectus supplement and the accompanying prospectus. The offering price of the Shares is $11.00.
Our ordinary shares are listed on The NASDAQ Capital Market under the symbol “SPCB.” The last reported sale price of the ordinary shares on January 29, 2025 was $13.44 per
ordinary share.
The sales of the ordinary shares will be made in accordance with one or more Securities Purchase Agreements, each dated as of January 30, 2025, by and among us and the investors
named therein (the “Securities Purchase Agreements”).
|
|
Per Ordinary Share
|
|
Total
|
|
Public offering price
|
US$11.00
|
|
US$5,999,994.00
|
|
Placement agent fees(1)
|
US$0.66
|
|
US$359,999.64
|
|
Proceeds to us (before expenses)
|
US$10.34
|
|
US$5,639,994.36
|
|
(1) |
For a description of compensation payable to the placement agent, see “Plan of Distribution.”
|
We have retained Maxim Group LLC to act as the placement agent in connection with the securities offered by this prospectus supplement and the accompanying prospectus. We will
pay the placement agent a fee equal to the sum of 6.0% of the aggregate purchase price paid by the investors placed by the placement agent. The placement agent has agreed to use its reasonable best efforts to arrange for the sale of the securities
offered by this prospectus supplement and the accompanying prospectus. The placement agent has no obligation to purchase any of the securities offered hereunder or to arrange for the sale of any specific number or dollar amount of the securities
offered hereunder. The placement agent may engage one or more selected dealers or sub-agents in connection with this offering.
Delivery of our Shares is expected to be made on or about January 31, 2025, subject to the satisfaction of customary closing conditions.
Investing in these securities involves risks. See the “Risk Factors” on page S-8 of this prospectus supplement, and those included in the accompanying
prospectus and the documents incorporated by reference herein and therein to read about factors you should consider before investing in these securities.
Neither the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the
accuracy or adequacy of the disclosures in this prospectus, including any prospectus supplement and documents incorporated by reference. Any representation to the contrary is a criminal offense.
MAXIM GROUP LLC
The date of this prospectus supplement is January 30, 2025.
TABLE OF CONTENTS
Prospectus Supplement
|
|
Page
|
|
|
S-1
|
|
|
S-3
|
|
|
S-5
|
|
|
S-7
|
|
|
S-8
|
|
|
S-10
|
|
|
S-11
|
|
|
S-11
|
|
|
S-12
|
|
|
S-12
|
|
|
S-13
|
|
|
S-14
|
|
|
S-14
|
|
|
S-14
|
|
|
S-14
|
|
|
S-14
|
|
|
S-15
|
Prospectus
|
|
Page
|
|
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
6
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
|
10
|
|
|
13
|
|
|
14
|
|
|
14
|
|
|
14
|
|
|
15
|
|
|
16
|
S - ii
ABOUT THIS PROSPECTUS SUPPLEMENT
This prospectus supplement is part of a registration statement that we have filed with the U.S. Securities and Exchange Commission (the “SEC”), utilizing a “shelf” registration
process. Under the shelf registration process, we may offer securities having an aggregate offering price of up to $50,000,000 under the accompanying base prospectus. This prospectus supplement may add to, update or change information in the
accompanying prospectus and the documents incorporated by reference into this prospectus supplement or the accompanying prospectus.
We provide information to you about this offering of our ordinary shares in two separate documents that are bound together: (1) this prospectus supplement, which describes the
specific details regarding this offering of our ordinary shares; and (2) the accompanying base prospectus, which provides general information, some of which may not apply to this offering. Generally, when we refer to this “prospectus,” we are
referring to both documents combined.
If information in this prospectus supplement is inconsistent with the accompanying base prospectus or with any document incorporated by reference that was filed with the SEC
before the date of this prospectus supplement, you should rely on this prospectus supplement. Any statement so modified will be deemed to constitute a part of this prospectus only as so modified, and any statement so superseded will be deemed not
to constitute a part of this prospectus. However, if any statement in one of these documents is inconsistent with a statement in another document having a later date — for example, a document incorporated by reference in this prospectus supplement,
the statement in the document having the later date modifies or supersedes the earlier statement as our business, financial condition, results of operations and prospects may have changed since the earlier dates.
This prospectus supplement, the accompanying base prospectus and the documents incorporated into each by reference include important information about us, the securities being
offered and other information you should know before investing in our securities. You should also read and consider information in the documents we have referred you to in the section of this prospectus supplement and the accompanying base
prospectus entitled “Where You Can Find More Information” and “Incorporation of Certain Documents By Reference.”
You should rely only on the information contained in or incorporated by reference into this prospectus supplement and the accompanying base prospectus and any free writing
prospectus we may provide to you in connection with this offering and the information incorporated or deemed to be incorporated by reference therein. We have not, and the placement agent has not, authorized anyone to provide you with information
that is in addition to or different from that contained or incorporated by reference in this prospectus supplement and the accompanying base prospectus. If anyone provides you with different or inconsistent information, you should not rely on it.
We are not, and the placement agent is not, offering to sell these securities in any jurisdiction where the offer or sale is not permitted. You should not assume that the information contained or incorporated by reference in this prospectus
supplement or the accompanying base prospectus is accurate as of any date other than as of the date of this prospectus supplement or the accompanying base prospectus, as the case may be, or in the case of the documents incorporated by reference,
the date of such documents regardless of the time of delivery of this prospectus supplement and the accompanying base prospectus or any sale of our securities. Our business, financial condition, liquidity, results of operations and prospects may
have changed since those dates.
We further note that the representations, warranties and covenants made by us in any agreement that is filed as an exhibit to any document that is incorporated by reference in
this prospectus supplement were made solely for the benefit of the parties to such agreement, including, in some cases, for the purpose of allocating risk among the parties to such agreements, and should not be deemed to be a representation,
warranty or covenant to you. Moreover, such representations, warranties or covenants were accurate only as of the date when made. Accordingly, such representations, warranties and covenants should not be relied on as accurately representing the
current state of our affairs.
This prospectus supplement contains and incorporates by reference market data and industry statistics and forecasts that are based on independent industry publications and other
publicly available information. Although we believe that these sources are reliable, we do not guarantee the accuracy or completeness of this information and we have not independently verified this information. Although we are not aware of any
misstatements regarding the market and industry data presented in this prospectus and the documents incorporated herein by reference, these estimates involve risks and uncertainties and are subject to change based on various factors, including
those discussed under the heading “Risk Factors” in this prospectus supplement and under similar headings in the other documents that are incorporated by reference into this prospectus. Accordingly, investors should not place undue reliance on this
information.
We are offering to sell, and are seeking offers to buy, our ordinary shares only in jurisdictions where such offers and sales are permitted. No action has been or will be taken
in any jurisdiction by us or the placement agent that would permit a public offering of our ordinary shares or the possession or distribution of this prospectus supplement and the accompanying base prospectus in any jurisdiction, other than in the
United States. Persons outside the United States who come into possession of this prospectus supplement and the accompanying base prospectus must inform themselves about, and observe any restrictions relating to, the offering of our ordinary shares
and the distribution of this prospectus supplement and the accompanying base prospectus outside the United States. This prospectus supplement and the accompanying base prospectus do not constitute, and may not be used in connection with, an offer
to sell, or a solicitation of an offer to buy, any securities offered by this prospectus supplement and the accompanying base prospectus by any person in any jurisdiction in which it is unlawful for such person to make such an offer or
solicitation.
It is important for you to read and consider all the information contained or incorporated by reference in this prospectus supplement and the accompanying prospectus in making
your investment decision.
In this prospectus supplement and the accompanying prospectus, unless otherwise indicated or unless the context otherwise requires, references to:
|
• |
The “Company,” “SuperCom,” “we,” “us,” “our Company” and “our” refer to SuperCom Ltd., a company (or its predecessors as the context requires) organized under the laws of Israel, and its subsidiaries;
|
|
• |
“Shares” or “ordinary shares” refers to our ordinary shares, par value NIS 50 per share;
|
|
• |
all references to “US$” or “U.S. dollars” are to the legal currency of the United States; and
|
|
• |
all references to “shekels” or “NIS” are to the legal currency of Israel.
|
All discrepancies in any table between the amounts identified as total amounts and the sum of the amounts listed therein are due to rounding.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus supplement, the accompanying prospectus and the documents incorporated by reference herein or therein, contain forward-looking statements within the meaning of
Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms including “anticipates,” “believes,” “intends,” “estimates,” “expects,” “intends,” “may,”
“plans,” “potential,” “predicts,” “projects,” “could,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements. Forward-looking statements reflect our current views with respect to future events and are
based on assumptions and subject to risks and uncertainties. Factors that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements include, but are not limited to:
|
• |
if we are unable to manage our revenue growth, our business, financial results and stock price could suffer;
|
|
• |
our dependence on orders from large customers for a substantial portion of our revenues;
|
|
• |
the impact of other companies and technologies that compete with us within our industry;
|
|
• |
any acquisitions that we have completed, or may complete in the future, may not perform as planned and could disrupt our business and harm our financial condition and operations;
|
|
• |
our ability to generate sufficient cash from operations and potential need to obtain additional financing or reduce our level of expenditure;
|
|
• |
changing technology, requirements, standards and products in the market of our products;
|
|
• |
our ability to enter into contracts with governments, as well as state and local governmental agencies and municipalities;
|
|
• |
our dependence on third-party representatives, resellers and distributors could result in marketing and distribution delays;
|
|
• |
if our technology and solutions cease to be adopted and used by government and public and private organizations;
|
|
• |
our ability to develop and sustain our position as a provider of e-Gov, IoT and Connectivity, and Cyber Security, solutions and services and earn high margins from our technology;
|
|
• |
our operating results may be adversely affected by unfavorable economic and market conditions and the uncertain geopolitical environment;
|
|
• |
our efforts to expand our international operations and maintain or increase our future international sales;
|
|
• |
our exposure to risks in operating in foreign markets;
|
|
• |
fluctuation in our financial and operating results;
|
|
• |
our reliance on third party technologies and components for the development of some of our products;
|
|
• |
delays in deliveries from our suppliers, defects in goods or components supplied by our vendors, or delays in projects that are performed by our subcontractors;
|
|
• |
significant differences between forecasted demands and actual orders received;
|
|
• |
breaches of network or information technology security, natural disasters or terrorist attacks;
|
|
• |
ability by third parties to obtain access to our proprietary information or could independently develop similar technologies;
|
|
• |
assertion by third parties that we are infringing their intellectual property rights, and IP litigation;
|
|
• |
our reliance on the services of certain of our executive officers and key personnel;
|
|
• |
our ability to attract, hire and retain qualified technical personnel;
|
|
• |
our products being subject to government regulation of radio frequency technology;
|
|
• |
war, terrorism, other acts of violence or natural or man-made disasters, including a global pandemic;
|
|
• |
the impact of the political and security situation in Israel and in the U.S. on our business;
|
|
• |
impact of inflation and currency fluctuations;
|
|
• |
impact of the obligation of our management or key personnel to perform military service in Israel;
|
|
• |
our ability to enforce covenants not-to-compete under current Israeli law; and
|
|
• |
our company being subject to claims for remuneration or royalties for assigned service invention rights by our employees.
|
We caution you to carefully consider these risks and not to place undue reliance on our forward-looking statements. Forward-looking statements should not be read as a guarantee
of future performance or results, and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are
made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from what is expressed in or suggested by the
forward-looking statements.
Forward-looking statements speak only as of the date they are made. Unless we are required to do so under U.S. federal securities laws or other applicable laws, we do not assume
an obligation to or intend to update or revise any forward-looking statements. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking
statements. We caution you not to give undue weight to such projections, assumptions and estimates.
PROSPECTUS SUPPLEMENT SUMMARY
This prospectus supplement summary highlights selected information included elsewhere in or incorporated by reference into this prospectus supplement and the
accompanying prospectus and does not contain all the information that you should consider before making an investment decision. You should read this entire prospectus supplement and the accompanying prospectus carefully, including the “Risk
Factors” sections and the financial statements and related notes and other information incorporated by reference, before making an investment decision.
Overview
Founded in 1988, we are a global provider of traditional and digital identity solutions, advanced Internet of Things (IoT) and connectivity solutions, and cyber security
products and solutions, to governments and private and public organizations throughout the world.
We are comprised of three main Strategic Business Units (SBU): e-Gov, IoT and Connectivity, and Cyber Security:
Through our proprietary e-Government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance and border control services, we
have helped governments and national agencies design and issue secured multi-identification, or Multi-ID, documents and robust digital identity solutions to their citizens, visitors and Lands.
We have focused on expanding our activities in the traditional identification, or ID, and electronic identification, or e-Gov, market, including the design, development and
marketing of identification technologies and solutions to governments in Europe, Asia, America and Africa using our e-Government platforms. Our activities include: (i) utilizing paper secured by different levels of security patterns (UV,
holograms, etc.); and (ii) electronic identification secured by biometric data, principally in connection with the issuance of national Multi-ID documents (IDs, passports, driver’s licenses, vehicle permits, and visas, Secure Land Certificated)
border control applications and Land Information System (LIS).
Our IoT products and solutions reliably identify, track and monitor people or objects in real time, enabling our customers to detect unauthorized movement of people, vehicles
and other monitored objects. We provide all-in-one field proven IoT suite, accompanied with services specifically tailored to meet the requirements of an IoT solutions. Our proprietary IoT suite of hybrid hardware, connectivity and software
components are the foundation of these solutions and services. Our IoT division has primarily focused on growing the following markets: (i) public safety; (ii) healthcare and homecare; (iii) Smart Cities (iv) Smart Campus and (iv) transportation.
During 2006, we identified the growing electronic tracking and monitoring vertical markets for public safety, real time healthcare and homecare, and transportation management.
We have developed the PureRF Hybrid suite of wrist devices, connectivity, and controlling software, from 2012 we have developed the next generation IoT suite of devices, connectivity and Monitoring software; the PureSecurity Hybrid Suite of wrist
band, tags, beacons, PureCom, Pure Monitors, PureTrack and other components.
On January 1, 2016 we acquired Leaders in Community Alternatives, Inc. (“LCA”). LCA is a California based, private criminal justice organization, providing community-based
services and electronic monitoring programs to government agencies in the U.S. for more than 25 years. LCA offers a broad range of competitive solutions for governmental institutions across the U.S. in addressing realignment strategies and plans.
In 2016, as part of our strategy to enhance and broaden our IoT connectivity products and solutions offerings for public safety, enterprises, hospitality and smart cities
markets, on May 18, 2016, we acquired Alvarion Technologies Ltd., or Alvarion. Alvarion designs solutions for carrier wi-fi, enterprise connectivity, smart city, smart hospitality, connected campuses and connected events that are both complete
and heterogeneous to ensure ease-of-use and optimize operational efficiency. Carriers, local governments and hospitality sectors worldwide deploy Alvarion’s intelligent wi-fi networks to enhance productivity and performance, as well as its legacy
backhaul services and products.
During 2015, we identified the cyber security market as a very fast-growing market where we believe that SuperCom has major advantages due to synergic technologies and shared
customer base to our e-Gov, IoT and connectivity SBUs. In 2015, we acquired Prevision Ltd., or Prevision, a company with a strong presence in the market and a broad range of competitive and well-known cyber security services. During the first
quarter of 2016, we acquired Safend Ltd, or Safend, an international provider of cutting-edge endpoint data protection guarding against corporate data loss and theft through content discovery and inspection, encryption methodologies, and
comprehensive device and port control. Safend maps sensitive information and controls data flow through email, web, external devices and additional channels.
Both acquisitions significantly expanded the breadth of our cyber security capabilities globally, while providing us with outstanding market and technological experts and over
3,000 customers in the United States, Europe, and Asia, and more than three million software license seats deployed by multinational enterprises, government agencies and small to mid-size companies around the globe, together with leading data and
cyber security platforms and technologies.
Statements made in this Registration Statement on Form F-3 (this “Registration Statement”) concerning the contents of any contract, agreement or other document are summaries of
such contracts, agreements or documents and are not complete descriptions of all their terms. If we filed any of these documents as an exhibit to this Registration Statement or to any previous filing with SEC, you may read the document itself for
a complete recitation of its terms.
In this Registration Statement, unless otherwise specified or unless the context otherwise requires, all references to “$” or “dollars” are to U.S. dollars and all references
to “NIS” are to New Israeli Shekels. Except as otherwise indicated, the financial statements of and information regarding SuperCom are presented in U.S. dollars in accordance with generally acceptable accounting principles in the United States
(“U.S. GAAP”). The representative rate exchange rate between the NIS and the dollar as published by the Bank of Israel and effective on December 31, 2024, was NIS 3.647 per $1.00.
We were organized under the laws of the State of Israel on July 4, 1988. We were incorporated in the State of Israel pursuant to the provisions of the then-current Israeli
Companies Ordinance. The legislative framework within which we now operate is the Israeli Companies Law, which became effective on February 1, 2000, and the Israeli Companies Ordinance (New Version) 1983, as amended (the “Companies Ordinance”).
Our principal executive offices are located at 3 Rothschild Street, Tel Aviv, Israel and our telephone number is +972-9-8890850. Our website address is http://www.supercom.com, where we regularly post copies of our press releases as well as
additional information about us.
From time to time, we may also use our website for disclosure of material information about our business and operations. Information contained in our website is not a part of,
nor incorporated by reference into, this prospectus or our other filings with the SEC, and should not be relied upon. Our agent in the United States is SuperCom, Inc., 160 Franklin Street, Suite 310, Oakland, CA 94607.
|
Issuer
|
SuperCom Ltd.
|
|
|
|
|
Securities Offered by Us
|
545,454 of our ordinary shares.
|
|
|
|
|
Offering Price Per Ordinary Share
|
$11.00 per ordinary share
|
|
|
|
|
Ordinary Shares Outstanding Immediately
Before this Offering
|
2,930,076 ordinary shares.
|
|
|
|
|
Ordinary Shares Outstanding Immediately after this Offering
|
3,475,530 ordinary shares(1).
|
|
|
|
|
Use of Proceeds
|
We intend to use net proceeds from this offering for working capital, research and development, potential acquisitions and other general corporate purposes.
See “Use of Proceeds” for more information.
|
|
|
|
|
Listing
|
Our ordinary shares are listed on The NASDAQ Capital Market under the symbol “SPCB.”
|
|
|
|
|
Risk Factors
|
Investing in our securities involves a high degree of risk. Before investing in our securities, you should carefully consider the risk factors described in the section titled “Risk Factors”
beginning on page S-[__] of this prospectus supplement as well as the risks identified in documents that are incorporated by reference in this prospectus supplement.
|
|
|
|
|
Settlement
|
Delivery of the Shares offered hereby will be made against payment therefor through the book-entry facilities of The Depository Trust Company in New York, New York, on or about January 31,
2025, subject to the satisfaction of customary closing conditions.
|
|
|
|
|
Transfer Agent
|
The registrar and transfer agent in respect of the ordinary shares will be Equiniti Trust Company, LLC (formerly American Stock Transfer & Trust Company, LLC).
|
|
(1) |
The number of our ordinary shares that will be outstanding immediately after this offering as shown above is based on 2,930,076 ordinary shares outstanding as of January 30, 2025, and excludes ordinary shares issuable upon the exercise
of our outstanding convertible notes, stock options and warrants.
|
The following is a summary of certain risks that should be carefully considered along with the other information contained or incorporated by reference in
this prospectus supplement, the accompanying prospectus, and the documents incorporated by reference, as updated by our subsequent filings under the Exchange Act. Particularly, you should carefully consider the risk factors set forth under the
heading Item 3D “Key Information — Risk Factors” in our Annual Report, Amendment No. 1, on Form 20-F/A for the year ended December 31, 2023, filed with the SEC on August 14, 2024 (the “Annual Report”), and in any other filing we make with the SEC
subsequent to the date of this prospectus supplement, each of which are incorporated herein by reference, and in any supplement to this prospectus, before making your investment decision. The risks and uncertainties we have described are not the
only ones we face. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our operations. Past financial performance may not be a reliable indicator of future performance, and historical
trends should not be used to anticipate results or trends in future periods. If any of these risks actually occur, our business, business prospects, financial condition or results of operations could be seriously harmed. This could cause the
trading price of our ordinary shares to decline, resulting in a loss of all or part of your investment. Please also read carefully the section below entitled “Cautionary Note Regarding Forward-Looking Statements.”
Risks Related to This Offering and Our Ordinary Shares
Since our management will have broad discretion in how we use the proceeds from this offering, we may use the proceeds in ways with which you disagree.
Our management will have broad discretion over the use of proceeds from this offering. We intend to use net proceeds from this offering for working capital, research and
development, potential acquisitions and other general corporate purposes. Our management will have considerable discretion in the application of the net proceeds, and you will not have the opportunity, as part of your investment decision, to assess
whether the proceeds are being used appropriately. The net proceeds may be used for corporate purposes that do not improve our operating results or enhance the value of our ordinary shares. The failure of our management to use these funds
effectively could have a material adverse effect on our business, cause the market price of our ordinary shares to decline and impair the commercialization of our products and/or delay the development of our product candidates. Pending their use,
we may invest the net proceeds from this offering in short-term, investment-grade, interest-bearing instruments and U.S. government securities. These investments may not yield a favorable return to our stockholders.
Future sales of our ordinary shares, whether by us or our shareholders, could cause our ordinary share price to decline.
If our existing shareholders sell, or indicate an intent to sell, substantial amounts of our ordinary shares in the public market, the trading price of our ordinary shares could
decline significantly. Similarly, the perception in the public market that our shareholders might sell our ordinary shares could also depress the market price of our ordinary shares. A decline in the price of our ordinary shares might impede our
ability to raise capital through the issuance of additional ordinary shares or other equity securities. In addition, the issuance and sale by us of additional ordinary shares, or securities convertible into or exercisable for our ordinary shares,
or the perception that we will issue such securities, could reduce the trading price for our ordinary shares as well as make future sales of equity securities by us less attractive or not feasible. The sale of ordinary shares issued upon the
exercise of our outstanding options and warrants could further dilute the holdings of our then existing shareholders.
If securities or industry analysts do not publish research about our business, or if they adversely change their recommendations regarding
our ordinary shares, the market price for our ordinary shares and trading volume could decline.
The trading market for our ordinary shares will be influenced by research or reports that industry or securities analysts publish about our business. If one or more analysts who
cover us downgrade our ordinary shares, the market price for our ordinary shares would likely decline. If one or more of these analysts cease to cover us, or fail to regularly publish reports on us, we could lose visibility in the financial
markets, which in turn could cause the market price or trading volume for our ordinary shares to decline.
You may experience future dilution as a result of future equity offerings or other equity issuances.
We may in the future issue additional ordinary shares or other securities convertible into or exchangeable for our ordinary shares. We cannot assure you that we will be able to
sell our ordinary shares or other securities in any other offering or other transactions at a price per ordinary share that is equal to or greater than the price per ordinary share paid by the investors in this offering. The price per ordinary
share at which we sell additional ordinary shares or other securities convertible into or exchangeable for our ordinary shares in future transactions may be higher or lower than the price per ordinary share in this offering. If we do issue any such
additional ordinary shares, such issuance also will cause a reduction in the proportionate ownership and voting power of all other shareholders.
We have additional securities available for issuance, which, if issued, could adversely affect the rights of the holders of our ordinary
shares.
Our Articles of Association, as amended, authorize the issuance of 5,000,000 ordinary shares. In certain circumstances, the ordinary shares, as well as the awards available for
issuance under our equity incentive plans, can be issued by our board of directors, without stockholder approval. Any future issuances of ordinary shares would further dilute the percentage ownership of us held by holders of our ordinary shares. In
addition, the issuance of certain securities may be used as an “anti-takeover” device without further action on the part of our stockholders, and may adversely affect the holders of our ordinary shares.
As we do not expect to pay dividends in the foreseeable future, you must rely on price appreciation of our ordinary shares for return on
your investment.
We currently intend to retain most, if not all, of our available funds and any future earnings to fund the development and growth of our business. As a result, we do not expect
to pay any cash dividends in the foreseeable future. Therefore, you should not rely on an investment in our ordinary shares as a source for any future dividend income. Accordingly, the return on your investment in our ordinary shares will likely
depend entirely upon any future price appreciation of our ordinary shares. There is no guarantee that our ordinary shares will appreciate in value or even maintain the price at which you purchased the ordinary shares. You may not realize a return
on your investment in our ordinary shares and you may even lose your entire investment in our ordinary shares.
Techniques employed by short sellers may drive down the market price of our ordinary shares.
Short selling is the practice of selling securities that the seller does not own but rather has borrowed from a third party with the intention of buying identical securities back
at a later date to return to the lender. The short seller hopes to profit from a decline in the value of the securities between the sale of the borrowed securities and the purchase of the replacement shares, as the short seller expects to pay less
in that purchase than it received in the sale. As it is in the short seller’s interest for the price of the security to decline, many short sellers publish, or arrange for the publication of, negative opinions regarding the relevant issuer and its
business prospects in order to create negative market momentum and generate profits for themselves after selling a security short. These short attacks have, in the past, led to selling of shares in the market.
We may in the future be the subject of unfavorable allegations made by short sellers. Any such allegations may be followed by periods of instability in the market price of our
ordinary shares and negative publicity. If and when we become the subject of any unfavorable allegations, whether such allegations are proven to be true or untrue, we could have to expend a significant amount of resources to investigate such
allegations and/or defend ourselves. While we would strongly defend against any such short seller attacks, we may be constrained in the manner in which we can proceed against the relevant short seller by principles of freedom of speech, applicable
federal or state law or issues of commercial confidentiality. Such a situation could be costly and time-consuming and could distract our management from growing our business. Even if such allegations are ultimately proven to be groundless,
allegations against us could severely impact our business operations and shareholder’s equity, and the value of any investment in our ordinary shares could be greatly reduced or rendered worthless.
If we were defendants in securities class actions litigation, it could result in substantial costs and liabilities.
The market for our ordinary shares may have, when compared to seasoned issuers, significant price volatility and we expect that our share price may continue to be more volatile
than that of a seasoned issuer for the indefinite future. In the past, plaintiffs have often initiated securities class action litigation against a company following periods of volatility in the market price of its securities. If we are sued in
securities class actions in the future, this could result in substantial costs and liabilities and could divert management’s attention and resources.
As we are a foreign private issuer and are exempt from certain Nasdaq corporate governance standards applicable to U.S. issuers, you have
less protection than you would have if we were a domestic issuer.
The Nasdaq listing rules require listed companies to have, among other things, a majority of their board members be independent. As a foreign private issuer, however, we are
permitted to, and we will, follow home country practice in lieu of the above requirements. The corporate governance practice in our home country, Israel, does not require a majority of our board to consist of independent directors. Since a majority
of our board of directors may not consist of independent directors and due to the family relationships among certain of our executive officers and our Chairman, fewer board members may be exercising independent judgment and the level of board
oversight on the management of our company may decrease as a result. In addition, the Nasdaq listing rules also require U.S. domestic issuers to have a compensation committee, a nominating/corporate governance committee composed entirely of
independent directors, and an audit committee with a minimum of three members each of whom must be an independent director (unless any exception under the Nasdaq listing rules applies). We, as a foreign private issuer, are not subject to these
requirements, except for the aforesaid independence requirement for audit committee members (unless any exception under the Nasdaq listing rules applies). The Nasdaq listing rules may require shareholder approval for certain corporate matters, such
as requiring that shareholders be given the opportunity to vote on all equity compensation plans and material revisions to those plans, and certain issuances of ordinary shares and securities convertible into or exchangeable for ordinary shares. We
are not required to and may not comply with the requirements of the Nasdaq listing rules in determining whether shareholder approval is required on such matters. While we have appointed a compensation committee and a nominating committee, we have
followed home country practice to not have all members of our compensation committee and nomination committee composed entirely of independent directors. In addition, we may consider following home country practice in lieu of the requirements under
the Nasdaq listing rules with respect to certain other corporate governance standards which may afford less protection to investors.
We estimate that the net proceeds from the sale of the 545,454 ordinary shares that we are offering will be approximately $5.59 million, after deducting the estimated placement
agent fees and estimated offering expenses payable by us.
We intend to use net proceeds from this offering for working capital, research and development, potential acquisitions and other general corporate purposes. The amounts and timing of any expenditures
will vary depending on the amount of cash generated by our operations, and the rate of growth, if any, of our business, and our plans and business conditions.
The foregoing represents our intentions as of the date of this prospectus supplement based upon our current plans and business conditions to use and allocate the net proceeds of
this offering. However, our management will have significant flexibility and discretion in applying the net proceeds of this offering. Unforeseen events or changed business conditions may result in application of the proceeds of this offering in a
manner other than as described in this prospectus supplement.
To the extent that the net proceeds we receive from this offering are not immediately applied for the above purposes, we plan to invest the net proceeds in bank deposits.
Our dividend policy is set forth under the heading “Item 8. Financial Information — A. Consolidated Statements and Other Financial Information — Dividend Distribution Policy” in
our Annual Report, which is incorporated in this prospectus by reference, as updated by our subsequent filings under the Exchange Act.
The following table sets forth our capitalization as of September 30, 2024:
|
• |
on an actual basis; and
|
|
• |
on an as adjusted basis to reflect the issuance and sale of our ordinary shares by us in this offering at the price of $11.00 per ordinary share, which is set forth on the cover page of this prospectus, after deducting the estimated
placement agent fees, and the estimated offering expenses payable by us.
|
You should read this capitalization table in conjunction with Use of Proceeds, the financial statements and notes thereto and other financial information incorporated by
reference into this prospectus and any prospectus supplement. Our historical results do not necessarily indicate our expected results for any future periods. Amounts in thousands of US dollars (“$”), except share and per share data or otherwise
stated.
|
|
|
September 30, 2024
|
|
|
|
|
Actual
|
|
|
As
adjusted
|
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Total Debt
|
|
|
30,295
|
|
|
|
30,295
|
|
|
Ordinary shares (par value NIS 50 per share; 5,000,000 shares authorized, 2,039,372 shares issued and outstanding as of September 30, 2024)
|
|
$
|
21,970
|
|
|
$
|
27,610
|
|
|
Additional paid-in capital
|
|
$
|
95,803
|
|
|
$
|
95,803
|
|
|
Retained Earnings
|
|
$
|
(104,428
|
)
|
|
$
|
(104,428
|
)
|
|
Total Shareholders’ Equity
|
|
$
|
13,345
|
|
|
$
|
18,985
|
|
|
Total Capitalization
|
|
$
|
42,875
|
|
|
$
|
48,515
|
|
The table and discussion above are based on 2,039,372 ordinary shares issued and outstanding as of September 30, 2024 and excludes as of that date:
|
• |
1,271,676 ordinary shares underlying our outstanding convertible notes, warrants and options; and
|
|
• |
890,704 ordinary shares issued from September 30, 2024 until January 30, 2025.
|
DESCRIPTION OF SECURITIES WE ARE OFFERING
Ordinary Shares
See “Description of Ordinary Shares” on page 6 of the accompanying prospectus for a description of the material terms of our ordinary shares.
Maxim Group LLC has agreed to act as the exclusive lead placement agent in connection with this offering subject to the terms and conditions of the Placement Agency Agreement,
dated January 30, 2025. We refer to Maxim Group LLC as the placement agent. The placement agent is not purchasing or selling any of our ordinary shares offered by this prospectus supplement, nor is it required to arrange the purchase or sale of any
specific number or dollar amount of our ordinary shares, but have agreed to use its reasonable best efforts to arrange for the sale of all of the ordinary shares offered hereby. Therefore, we have entered into a Securities Purchase Agreement
directly with the investors in connection with this offering and we may not sell the entire amount of the ordinary shares offered pursuant to this prospectus supplement. We will make offers only to a limited number of institutional accredited
investors.
Pursuant to the terms of the Securities Purchase Agreements, from the date hereof until thirty (30) days after the closing of this offering, we may not issue, enter into any
agreement to issue or announce the issuance or proposed issuance of any ordinary shares or ordinary share equivalents, subject to certain exceptions set forth in the Securities Purchase Agreements, nor may we enter into an at-the-market
transaction, whether through a new or an existing at-the-market program; provided, that after such 30-day period, we may enter into at-the market transactions.
In addition, we also agreed with the investors that from the date of this prospectus supplement until one hundred twenty days thereafter, and subject to certain additional
restrictions thereafter and subject to certain exceptions set forth in the Securities Purchase Agreements, we will not affect or enter into an agreement to effect a “Variable Rate Transaction,” which means a transaction in which we:
|
● |
Issue or sell any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive additional ordinary shares either (A) at a conversion price, exercise price or exchange rate or other
price that is based upon and/or varies with the trading prices of or quotations for our ordinary shares at any time after the initial issuance of such debt or equity securities, or (B) with a conversion, exercise or exchange price that is
subject to being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the business of our Company or the market for
our ordinary shares; or
|
|
● |
enter into, or effect a transaction under, any agreement, including, but not limited to, an equity line of credit, whereby we may issue securities at a future determined price.
|
We have also agreed to indemnify Maxim Group LLC against specified liabilities, including liabilities under the Securities Act, and to contribute to payments Maxim Group LLC may
be required to make in respect thereof. In addition, we engaged Kingswood Capital Partners LLC to provide to us certain financial advisory services in connection with this offering.
Fees and Expenses
We have agreed to pay the placement agent a placement agent fee equal to 6.0% of the aggregate purchase price of our ordinary shares sold in this offering. The following table
shows the per ordinary share and total cash placement agent’s fees we will pay to the placement agent in connection with the sale of our ordinary shares offered pursuant to this prospectus supplement and the accompanying prospectus, assuming the
purchase of all of the ordinary shares offered hereby.
|
|
|
Per Ordinary Share or Pre-
Funded Warrant
|
|
|
Total
|
|
|
Offering price
|
|
$
|
11.00
|
|
|
$
|
5,999,994.00
|
|
|
Placement agent’s fees
|
|
$
|
0.66
|
|
|
$
|
359,999.64
|
|
|
Proceeds, before expenses, to us
|
|
$
|
10.34
|
|
|
$
|
5,639,994.36
|
|
In addition, we have agreed to reimburse Maxim Group LLC’s actual out-of-pocket expenses up to $25,000.
We estimate that the total expenses of the offering payable by us, excluding the placement agent’s fees, will be approximately $50,000.
The placement agent may be deemed to be an underwriter within the meaning of Section 2(a)(11) of the Securities Act, and any commissions received by it and any profit realized on
the resale of the shares sold by it while acting as principal might be deemed to be underwriting discounts or commissions under the Securities Act. As underwriter, the placement agent would be required to comply with the requirements of the
Securities Act and the Securities Exchange Act of 1934, as amended, or the Exchange Act, including, without limitation, Rule 415(a)(4) under the Securities Act and Rule 10b-5 and Regulation M under the Exchange Act. These rules and regulations may
limit the timing of purchases and sales of shares by the placement agent acting as principal. Under these rules and regulations, the placement agent:
|
• |
may not engage in any stabilization activity in connection with our securities; and
|
|
• |
may not bid for or purchase any of our securities or attempt to induce any person to purchase any of our securities, other than as permitted under the Exchange Act, until it has completed its participation in the distribution.
|
This prospectus supplement and the accompanying prospectus may be made available in electronic format on websites or through other online services maintained by the placement
agent or by an affiliate. Other than this prospectus supplement and the accompanying prospectus, the information on the placement agent’s website and any information contained in any other website maintained by the placement agent is not part of
this prospectus supplement and the accompanying prospectus or the registration statement of which this prospectus supplement and the accompanying prospectus form a part, has not been approved and/or endorsed by us or the placement agent, and should
not be relied upon by investors.
The foregoing does not purport to be a complete statement of the terms and conditions of the placement agency agreement and the Securities Purchase Agreements. A copy of the
Securities Purchase Agreement with the purchasers will be included as an exhibit to our Report on Form 6-K to be filed with the SEC and incorporated by reference into the registration statement of which this prospectus supplement and the
accompanying prospectus form a part. See “Incorporation of Documents by Reference” and “Where You Can Find More Information.”
No action has been or will be taken in any jurisdiction (except in the United States) that would permit a public offering of the securities offered by this prospectus supplement
and accompanying prospectus, or the possession, circulation or distribution of this prospectus supplement and accompanying prospectus or any other material relating to us or the securities offered hereby in any jurisdiction where action for that
purpose is required. Accordingly, the securities offered hereby may not be offered or sold, directly or indirectly, and neither of this prospectus supplement and accompanying prospectus nor any other offering material or advertisements in
connection with the securities offered hereby may be distributed or published, in or from any country or jurisdiction except in compliance with any applicable rules and regulations of any such country or jurisdiction. The placement agent may
arrange to sell securities offered by this prospectus supplement and accompanying prospectus in certain jurisdictions outside the United States, either directly or through affiliates, where they are permitted to do so.
Relationships
The placement agent and its affiliates has provided and may provide from time to time in the future certain commercial banking, financial advisory, investment banking and other
services for us in the ordinary course of their business, for which they may receive customary fees and commissions. In addition, from time to time, the placement agent and its affiliates may effect transactions for their own account or the account
of customers, and hold on behalf of themselves or their customers, long or short positions in our debt or equity securities or loans, and may do so in the future. However, except as disclosed in this prospectus supplement, we have no present
arrangements with the placement agent for any further services.
Transfer Agent
The transfer agent and registrar for our ordinary shares is Equiniti Trust Company, LLC (formerly American Stock Transfer & Trust Company, LLC). The transfer agent and
registrar’s address is 90 Park Ave., New York, NY 10016.
Listing
Our ordinary shares are listed on The NASDAQ Capital Market under the symbol “SPCB.”
The validity of the ordinary shares offered in this offering and other certain legal matters as to Israeli law will be passed upon for us by S. Friedman Abramson & Co. We are
being represented by Foley Shechter Ablovatskiy LLP (“FSA”) with respect to U.S. federal securities law and New York State law in connection with this offering. The placement agent is being represented in connection with this offering by Pryor
Cashman LLP, New York, New York.
The financial statements incorporated in this prospectus by reference to the Annual Report on Form 20-F for the year ended December 31, 2023 and 2022 have been so incorporated in
reliance on the report of Yarel + Partners Certified Public Accountant (Isr.), our independent registered public accounting firm given the authority of said firm as an expert in auditing and accounting.
INTERESTS OF EXPERTS AND COUNSEL
No named expert of or counselor to us was employed on a contingent basis, or owns an amount of our shares (or those of our subsidiaries) which is material to that person, or has
a material, direct or indirect economic interest in us or that depends of the success of the offering.
COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling the registrant pursuant to the
foregoing provisions, the registrant has been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Act and is therefore unenforceable.
ENFORCEABILITY OF CIVIL LIABILITIES
We are incorporated under the laws of the State of Israel. Service of process upon us and upon our directors and officers and the Israeli experts named in this prospectus,
substantially all of whom reside outside the United States, may be difficult to obtain within the United States. Furthermore, because substantially all of our assets and substantially all of our directors and officers are located outside the
United States, any judgment obtained in the United States against us or any of our directors and officers may not be collectible within the United States.
It may be difficult to assert U.S. securities law claims in original actions instituted in Israel. Israeli courts may refuse to hear a claim based on a violation of
U.S. securities laws because Israel is not the most appropriate forum to bring such a claim. In addition, even if an Israeli court agrees to hear a claim, it may determine that Israeli law and not U.S. law is applicable to the claim. If U.S. law
is found to be applicable, the content of applicable U.S. law must be proved as a fact which can be a time-consuming and costly process. Certain matters of procedure will also be governed by Israeli law.
Subject to specified time limitations and legal procedures, Israeli courts may enforce a United States judgment in a civil matter which, subject to certain exceptions, is
non-appealable, including judgments based upon the civil liability provisions of the Securities Act and the Exchange Act and including a monetary or compensatory judgment in a non-civil matter, provided that:
|
• |
the judgments are obtained after due process before a court of competent jurisdiction, according to the laws of the state in which the judgment is given and the rules of private international law currently prevailing in Israel;
|
|
• |
the prevailing law of the foreign state in which the judgments were rendered allows the enforcement of judgments of Israeli courts (however, the Israeli courts may waive this requirement following a request by the attorney general);
|
|
• |
adequate service of process has been effected and the defendant has had a reasonable opportunity to be heard and to present his or her evidence;
|
|
• |
the judgments are not contrary to public policy, and the enforcement of the civil liabilities set forth in the judgment does not impair the security or sovereignty of the State of Israel;
|
|
• |
the judgments were not obtained by fraud and do not conflict with any other valid judgment in the same matter between the same parties;
|
|
• |
an action between the same parties in the same matter is not pending in any Israeli court at the time the lawsuit is instituted in the foreign court; and
|
|
• |
the obligations under the judgment are enforceable according to the laws of the State of Israel and according to the law of the foreign state in which the relief was granted.
|
We have irrevocably appointed SuperCom, Inc. as our agent to receive service of process in any action against us in any United States federal or state court arising out of
this offering or any purchase or sale of securities in connection with this offering.
If a foreign judgment is enforced by an Israeli court, it generally will be payable in Israeli currency, which can then be converted into non-Israeli currency and transferred
out of Israel. The usual practice in an action before an Israeli court to recover an amount in a non-Israeli currency is for the Israeli court to issue a judgment for the equivalent amount in Israeli currency at the rate of exchange in force on
the date of the judgment, but the judgment debtor may make payment in foreign currency. Pending collection, the amount of the judgment of an Israeli court stated in Israeli currency ordinarily will be linked to the Israeli consumer price index
plus interest at the annual statutory rate set by Israeli regulations prevailing at the time. Judgment creditors must bear the risk of unfavorable exchange rates.
WHERE YOU CAN FIND ADDITIONAL INFORMATION
We have filed with the SEC a registration statement on Form F-3 under the Securities Act, with respect to the securities offered by this prospectus. However, as is permitted by
the rules and regulations of the SEC, this prospectus, which is part of our registration statement on Form F-3, omits certain non-material information, exhibits, schedules and undertakings set forth in the registration statement. For further
information about us, and the securities offered by this prospectus, please refer to the registration statement.
We are subject to the reporting requirements of the Exchange Act that are applicable to a foreign private issuer. In accordance with the Exchange Act, we file reports, including
Annual Reports on Form 20-F by April 30 of each year. We also furnish to the SEC under cover of Form 6-K material information required to be made public in Israel, filed with and made public by any stock exchange or distributed by us to our
shareholders.
The registration statement on Form F-3 of which this prospectus forms a part, including the exhibits and schedules thereto, and reports and other information filed by us with the
SEC may be inspected without charge and copied at prescribed rates at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Copies of this material are also available by mail from the Public Reference Section of the SEC, at
100 F. Street, N.E., Washington D.C. 20549, at prescribed rates. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy
and information statements, and other information regarding issuers, such as us, that file electronically with the SEC (http://www.sec.gov).
As a foreign private issuer, we are exempt from the rules under the Exchange Act prescribing the furnishing and content of proxy statements to shareholders and our officers,
directors and principal shareholders are exempt from the “short-swing profits” reporting and liability provisions contained in Section 16 of the Exchange Act and related Exchange Act rules.
INCORPORATION OF DOCUMENTS BY REFERENCE
We file annual and special reports and other information with the SEC. These filings contain important information which does not appear in this prospectus. The SEC allows us
to “incorporate by reference” information into this prospectus, which means that we can disclose important information to you by referring you to other documents which we have filed or will file with the SEC. We are incorporating by reference in
this prospectus the documents listed below and all amendments or supplements we may file to such documents, as well as any future filings we may make with the SEC on Form 20-F under the Exchange Act before the time that all of the securities
offered by this prospectus have been sold or de-registered:
|
• |
our Annual Report on Form 20-F/A for the fiscal year ended on December 31, 2023, filed with the SEC on August 14, 2024; |
|
• |
our Report on Form 6-K, filed with the SEC on September 3, 2024, that contains our unaudited condensed consolidated interim
financial statements as of and for the six months ended June 30, 2024; |
|
• |
our Registration Statement on Form 8-A, filed with the SEC on September 12, 2013 under the Exchange Act, that contains the
description of our ordinary shares and any amendment or report filed with the SEC for the purpose of updating that description; |
|
• |
our Post-Effective Amendment No. 1 to our Registration Statement on Form F-1, filed with the SEC on September 11, 2024, that contains the
description of certain of our outstanding warrants; |
|
• |
any annual or periodic reports, including on Form 20-F, filed with the SEC pursuant to the Exchange Act after the date of this prospectus and prior to the termination of the offerings of the securities under this prospectus, and also
between the date of the initial registration statement and prior to effectiveness of the registration statement (except to the extent such reports are furnished but not filed with the SEC); and
|
|
• |
any Report on Form 6-K submitted to the SEC after the date of this prospectus and prior to the termination of the offerings of the securities under this prospectus, but only to the extent that the forms expressly state that we
incorporate them by reference in this prospectus.
|
Certain statements in and portions of this prospectus update and replace information in the above listed documents incorporated by reference. Likewise, statements in or
portions of a future document incorporated by reference in this prospectus may update and replace statements in and portions of this prospectus or the above listed documents.
We will provide you without charge, upon your written or oral request, a copy of any of the documents incorporated by reference in this prospectus, other than exhibits to such
documents which are not specifically incorporated by reference into such documents. Please direct your written or telephone requests to SuperCom Ltd., 3 Rothschild Street, Tel-Aviv, Israel, Attn: Ordan Trabelsi, Chief Executive Officer, telephone
number +972 (9) 889-0850. You may also obtain information about us by visiting our website at www.supercom.com. Information contained in our website is not part of this prospectus.
The information relating to us contained in this prospectus is not comprehensive and should be read together with the information contained in the incorporated documents.
Descriptions contained in the incorporated documents as to the contents of any contract or other document may not contain all the information which is of interest to you. You should refer to the copy of such contract or other document filed as an
exhibit to our filings.
PROSPECTUS
$50,000,000
Ordinary Shares
Preferred Shares
Warrants
Debt Securities
Subscriptions Rights
Units
SUPERCOM LTD.
We may offer, issue and sell from time to time up to $50,000,000 of our ordinary shares, preferred shares, warrants, debt securities, subscription rights and/or a combination of
such securities, separately or as units, in one or more offerings. We refer to the ordinary shares, preferred shares, warrants, debt securities, subscription rights and/or units collectively as “securities” in this prospectus.
This prospectus provides a general description of the securities we may offer. Each time we sell securities, we will provide specific terms of the securities offered in a
supplement to this prospectus. The prospectus supplement may also add, update, or change information contained in this prospectus. This prospectus may not be used to consummate a sale of securities unless accompanied by the applicable prospectus
supplement. You should read both this prospectus and any prospectus supplement together with additional information described under the heading “Where You Can Find More Information” and the documents incorporated or deemed to be incorporated by
reference carefully before you make your investment decision.
Each time we sell securities pursuant to this prospectus, we will provide a supplement to this prospectus that contains specific information about the offeror, the offering and
the specific terms of the securities offered. This prospectus may not be used to consummate a sale of securities by us unless accompanied by the applicable prospectus supplement. You should read this prospectus and the applicable prospectus
supplement carefully before you invest in our securities.
We may, from time to time, offer and/or sell these securities, through public or private transactions, directly to our shareholders or to purchasers or through agents on our
behalf or through underwriters, agents or dealers, on or off the NASDAQ Capital Market, at prevailing market prices or at privately negotiated prices. If any agents, underwriters or dealers are involved in the sale of any of these securities, the
applicable prospectus supplement will set forth the names of the underwriters, agents or dealers and any applicable fees, commissions or discounts.
The prospectus supplement for each offering of securities will describe in detail the plan of distribution for that offering. For general information about the distribution of
securities offered, please see “Plan of Distribution” in this prospectus on page 10.
Our ordinary shares are traded on the NASDAQ Capital Market under the symbol “SPCB.” The last reported sale price for our ordinary shares on January 7, 2025 as quoted on the
NASDAQ Capital Market was $8.99 per share.
As of January 3, 2025, the aggregate market value of our outstanding ordinary shares held by non-affiliates was $21,058,398 which was calculated based on 2,339,822 outstanding
ordinary shares held by non-affiliates and on a price per share of $9.00. Pursuant to General Instruction I.B.5 of Form F-3, in no event will we sell the shelf securities in a public primary offering with a value exceeding more than one-third of
the aggregate market value of our voting and non-voting ordinary shares held by non-affiliates in any 12-month period as long as the aggregate market value of our outstanding ordinary shares held by non-affiliates is less than $75 million. During
the 12 calendar months prior to and including the date of this prospectus, we have not offered or sold any securities pursuant to General Instruction I.B.5 of Form F-3.
Investing in these securities involves a high degree of risk. Please carefully consider the risks discussed in this prospectus under “Risk Factors” beginning
on page 3 and the “Risk Factors” in “Item 3: Key Information - Risk Factors” of our most recent Annual Report on Form 20-F incorporated by reference in this prospectus and in any applicable prospectus supplement for a discussion of the factors you
should consider carefully before deciding to purchase these securities.
You should rely only on the information contained or incorporated by reference in this prospectus. We have not authorized any other person to provide you with
different information. If anyone provides you with different or inconsistent information, you should not rely on it. We are not making an offer to sell these securities in any jurisdiction where the offer or sale is not permitted. You should assume
that the information appearing in this prospectus is accurate only as of the date on the front cover of this prospectus. Our business, financial condition, results of operation and prospects may have changed since that date.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the securities being offered by this
prospectus, or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus is January 21, 2025
TABLE OF CONTENTS
|
|
Page
|
|
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
6
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
|
10
|
|
|
13
|
|
|
14
|
|
|
14
|
|
|
14
|
|
|
15
|
|
|
16
|
This prospectus is part of a registration statement that we filed with the U.S. Securities and Exchange Commission (the “SEC”), utilizing a “shelf” registration process. Under
this process, we may offer and sell our securities under this prospectus. In this prospectus, the terms the “Company,” “SuperCom,” “we”, “us” and “our” and similar designations refer to SuperCom, Ltd. and its subsidiaries, unless otherwise
indicated. All references to “dollars” or “$” in this prospectus are to U.S. dollars, and all references to “shekels” or “NIS” are to New Israeli Shekels.
Under this shelf process, we may sell the securities described in this prospectus, including the securities carried forward from the Prior Shelf Registration Statement, in one or
more offerings up to a total price to the public of $50,000,000. The offer and sale of securities under this prospectus may be made from time to time, in one or more offerings, in any manner described under the section in this prospectus entitled
“Plan of Distribution.”
The aggregate amount of securities that we may offer under the registration statement is $50,000,000, denominated in U.S. dollars or the equivalent in foreign currencies,
currency units or composite currencies. We are subject to the provisions of General Instruction I.B.5. of the General Instructions to Form F-3, which provide that as long as the aggregate market value of our outstanding voting and non-voting
ordinary shares held by non-affiliates of our company is less than $75,000,000, then the aggregate market value of securities sold by us or on our behalf on Form F-3, during the period of 12 calendar months immediately prior to, and including, the
sale, is no more than one-third of the aggregate market value of the voting and non-voting common equity held by non-affiliates of our company. We have no outstanding non-voting ordinary shares.
This prospectus provides you with a general description of the securities we may offer. Each time we sell securities we will provide a prospectus supplement that will contain
specific information about the terms of that offering. The prospectus supplement may also add, update or change information contained in this prospectus, and may also contain information about any material federal income tax considerations relating
to the securities covered by the prospectus supplement. You should read both this prospectus and any prospectus supplement together with additional information under the headings “Where You Can Find More Information” and “Incorporation of Certain
Documents by Reference.”
This summary may not contain all of the information that may be important to you. You should read this entire prospectus, including the financial statements and related notes and
other financial data incorporated by reference in this prospectus, before making an investment decision. This summary contains forward-looking statements that involve risks and uncertainties. Our actual results may differ significantly from the
results discussed in the forward-looking statements. Factors that might cause or contribute to such differences include those discussed in “Risk Factors” and “Forward-Looking Statements.”
This prospectus and the information incorporated by reference herein and therein include trademarks, service marks and trade names owned by us or other companies. Solely for
convenience, trademarks referred to in this prospectus, including logos, artwork, and other visual displays, may appear without the ® or ™ symbols. We do not intend our use or display of other companies’ trade names or trademarks to imply a
relationship with, or endorsement or sponsorship of us by, any other companies. All trademarks, service marks and trade names included or incorporated by reference into this prospectus or an accompanying prospectus supplement are the property of
their respective owners.
Founded in 1988, we are a global provider of traditional and digital identity solutions, advanced Internet of Things (IoT) and connectivity solutions, and cyber security products
and solutions, to governments and private and public organizations throughout the world.
We are comprised of three main Strategic Business Units (SBU): e-Gov, IoT and Connectivity, and Cyber Security:
e-Gov
Through our proprietary e-Government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance and border control services, we have
helped governments and national agencies design and issue secured multi-identification, or Multi-ID, documents and robust digital identity solutions to their citizens, visitors and Lands.
We have focused on expanding our activities in the traditional identification, or ID, and electronic identification, or e-Gov, market, including the design, development and
marketing of identification technologies and solutions to governments in Europe, Asia, America and Africa using our e-Government platforms. Our activities include: (i) utilizing paper secured by different levels of security patterns (UV, holograms,
etc.); and (ii) electronic identification secured by biometric data, principally in connection with the issuance of national Multi-ID documents (IDs, passports, driver’s licenses, vehicle permits, and visas, Secure Land Certificated) border control
applications and Land Information System (LIS).
IoT and Connectivity
Our IoT products and solutions reliably identify, track and monitor people or objects in real time, enabling our customers to detect unauthorized movement of people, vehicles and
other monitored objects. We provide all-in-one field proven IoT suite, accompanied with services specifically tailored to meet the requirements of an IoT solutions. Our proprietary IoT suite of hybrid hardware, connectivity and software components
are the foundation of these solutions and services. Our IoT division has primarily focused on growing the following markets: (i) public safety; (ii) healthcare and homecare; (iii) Smart Cities (iv) Smart Campus and (iv) transportation.
During 2006, we identified the growing electronic tracking and monitoring vertical markets for public safety, real time healthcare and homecare, and transportation management. We
have developed the PureRF Hybrid suite of wrist devices, connectivity, and controlling software, from 2012 we have developed the next generation IoT suite of devices, connectivity and Monitoring software; the PureSecurity Hybrid Suite of wrist
band, tags, beacons, PureCom, Pure Monitors, PureTrack and other components.
On January 1, 2016 we acquired Leaders in Community Alternatives, Inc. (“LCA”). LCA is a California based, private criminal justice organization, providing community-based
services and electronic monitoring programs to government agencies in the U.S. for more than 25 years. LCA offers a broad range of competitive solutions for governmental institutions across the U.S. in addressing realignment strategies and plans.
Connectivity
In 2016, as part of our strategy to enhance and broaden our IoT connectivity products and solutions offerings for public safety, enterprises, hospitality and smart cities
markets, on May 18, 2016, we acquired Alvarion Technologies Ltd., or Alvarion. Alvarion designs solutions for carrier wi-fi, enterprise connectivity, smart city, smart hospitality, connected campuses and connected events that are both complete and
heterogeneous to ensure ease-of-use and optimize operational efficiency. Carriers, local governments and hospitality sectors worldwide deploy Alvarion’s intelligent wi-fi networks to enhance productivity and performance, as well as its legacy
backhaul services and products.
Cyber Security
During 2015, we identified the cyber security market as a very fast-growing market where we believe that SuperCom has major advantages due to synergic technologies and shared
customer base to our e-Gov, IoT and connectivity SBUs. In 2015, we acquired Prevision Ltd., or Prevision, a company with a strong presence in the market and a broad range of competitive and well-known cyber security services. During the first
quarter of 2016, we acquired Safend Ltd, or Safend, an international provider of cutting-edge endpoint data protection guarding against corporate data loss and theft through content discovery and inspection, encryption methodologies, and
comprehensive device and port control. Safend maps sensitive information and controls data flow through email, web, external devices and additional channels.
Both acquisitions significantly expanded the breadth of our cyber security capabilities globally, while providing us with outstanding market and technological experts and over
3,000 customers in the United States, Europe, and Asia, and more than three million software license seats deployed by multinational enterprises, government agencies and small to mid-size companies around the globe, together with leading data and
cyber security platforms and technologies.
Statements made in this Registration Statement on Form F-3 (this “Registration Statement”) concerning the contents of any contract, agreement or other document are summaries of
such contracts, agreements or documents and are not complete descriptions of all their terms. If we filed any of these documents as an exhibit to this Registration Statement or to any previous filing with SEC, you may read the document itself for a
complete recitation of its terms.
In this Registration Statement, unless otherwise specified or unless the context otherwise requires, all references to “$” or “dollars” are to U.S. dollars and all references to
“NIS” are to New Israeli Shekels. Except as otherwise indicated, the financial statements of and information regarding SuperCom are presented in U.S. dollars in accordance with generally acceptable accounting principles in the United States (“U.S.
GAAP”). The representative rate exchange rate between the NIS and the dollar as published by the Bank of Israel and effective on December 31, 2024, was NIS 3.647 per $1.00.
Corporate Information
We were organized under the laws of the State of Israel on July 4, 1988. We were incorporated in the State of Israel pursuant to the provisions of the then-current Israeli
Companies Ordinance. The legislative framework within which we now operate is the Israeli Companies Law, which became effective on February 1, 2000, and the Israeli Companies Ordinance (New Version) 1983, as amended (the “Companies Ordinance”). Our
principal executive offices are located at 3 Rothschild Street, Tel Aviv, Israel and our telephone number is +972-9-8890850. Our website address is http://www.supercom.com, where we regularly post copies of our press releases as well as additional
information about us.
From time to time, we may also use our website for disclosure of material information about our business and operations. Information contained in our website is not a part of,
nor incorporated by reference into, this prospectus or our other filings with the SEC, and should not be relied upon. Our agent in the United States is SuperCom, Inc., 160 Franklin Street, Suite 310, Oakland, CA 94607.
An investment in our securities involves a high degree of risk. Our business, financial condition or results of operations could be adversely affected by any of these risks. You
should carefully consider the risk factors discussed under the caption "Item 3D “Key Information - Risk Factors” in our Annual Report on Form 20-F, as amended, for the year ended December 31, 2023, filed with
the SEC on August 14, 2024 (the “2023 Form 20-F"), and in any other filing we make with the SEC subsequent to the date of this prospectus, each of which are incorporated herein by reference, and in any supplement to this prospectus, before making
your investment decision. The risks and uncertainties we have described are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our operations. Past financial
performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results or trends in future periods. If any of these risks actually occurs, our business, business prospects, financial
condition or results of operations could be seriously harmed. This could cause the trading price of our ordinary shares to decline, resulting in a loss of all or part of your investment. Please also read carefully the section below entitled
“Forward-Looking Statements.”
FORWARD-LOOKING STATEMENTS
This prospectus, including the information incorporated by reference into this prospectus, contains, and any prospectus supplement may include forward-looking statements within
the meaning of Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms including “anticipates,” “believes,” “intends,” “estimates,” “expects,”
“intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “could,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements. Forward-looking statements reflect our current views with respect to future
events and are based on assumptions and subject to risks and uncertainties. Factors that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements include, but are not limited to:
|
• |
if we are unable to manage our revenue growth, our business, financial results and stock price could suffer;
|
|
• |
our dependence on orders from large customers for a substantial portion of our revenues;
|
|
• |
the impact of other companies and technologies that compete with us within our industry;
|
|
• |
any acquisitions that we have completed, or may complete in the future, may not perform as planned and could disrupt our business and harm our financial condition and operations;
|
|
• |
our ability to generate sufficient cash from operations and potential need to obtain additional financing or reduce our level of expenditure;
|
|
• |
changing technology, requirements, standards and products in the market of our products;
|
|
• |
our ability to enter into contracts with governments, as well as state and local governmental agencies and municipalities;
|
|
• |
our dependence on third-party representatives, resellers and distributors could result in marketing and distribution delays;
|
|
• |
if our technology and solutions cease to be adopted and used by government and public and private organizations;
|
|
• |
our ability to develop and sustain our position as a provider of e-Gov, IoT and Connectivity, and Cyber Security, solutions and services and earn high margins from our technology;
|
|
• |
our operating results may be adversely affected by unfavorable economic and market conditions and the uncertain geopolitical environment;
|
|
• |
our efforts to expand our international operations and maintain or increase our future international sales;
|
|
• |
our exposure to risks in operating in foreign markets;
|
|
• |
fluctuation in our financial and operating results;
|
|
• |
our reliance on third party technologies and components for the development of some of our products;
|
|
• |
delays in deliveries from our suppliers, defects in goods or components supplied by our vendors, or delays in projects that are performed by our subcontractors;
|
|
• |
significant differences between forecasted demands and actual orders received;
|
|
• |
breaches of network or information technology security, natural disasters or terrorist attacks;
|
|
• |
ability by third parties to obtain access to our proprietary information or could independently develop similar technologies;
|
|
• |
assertion by third parties that we are infringing their intellectual property rights, and IP litigation;
|
|
• |
our reliance on the services of certain of our executive officers and key personnel;
|
|
• |
our ability to attract, hire and retain qualified technical personnel;
|
|
• |
our products being subject to government regulation of radio frequency technology;
|
|
• |
war, terrorism, other acts of violence or natural or man-made disasters, including a global pandemic;
|
|
• |
the impact of the political and security situation in Israel and in the U.S. on our business;
|
|
• |
impact of inflation and currency fluctuations;
|
|
• |
impact of the obligation of our management or key personnel to perform military service in Israel;
|
|
• |
our ability to enforce covenants not-to-compete under current Israeli law; and
|
|
• |
our company being subject to claims for remuneration or royalties for assigned service invention rights by our employees.
|
We caution you to carefully consider these risks and not to place undue reliance on our forward-looking statements. Forward-looking statements should not be read as a guarantee
of future performance or results, and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are
made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from what is expressed in or suggested by the
forward-looking statements.
Forward-looking statements speak only as of the date they are made. Unless we are required to do so under U.S. federal securities laws or other applicable laws, we do not assume
an obligation to or intend to update or revise any forward-looking statements. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking
statements. We caution you not to give undue weight to such projections, assumptions and estimates.
The table below sets forth our total capitalization as of September 30, 2024. The financial data in the following table should be read in conjunction with our financial
statements and notes thereto incorporated by reference herein.
|
|
|
As of September 30, 2024
|
|
|
|
|
Actual
|
|
|
|
|
(in thousands)
|
|
|
Total debt(1)
|
|
$
|
30,295
|
|
|
Ordinary shares, par value NIS 50 per share; 5,000,000 shares authorized, and 2,039,372 shares issued and outstanding, respectively
|
|
|
21,970
|
|
|
Additional paid-in capital
|
|
|
95,803
|
|
|
Accumulated deficit
|
|
|
104,428
|
|
|
Total shareholders’ equity
|
|
|
13,345
|
|
|
Total capitalization
|
|
$
|
42,875
|
|
| (1) |
Represents $765 thousand due under short-term loans and $29,530 thousand due under long-term loans.
|
Unless otherwise set forth in a prospectus supplement, we currently intend to use the net proceeds of any offering of securities for working capital, research and development,
potential acquisitions and other general corporate purposes. Accordingly, we will have significant discretion in the use of any net proceeds. We may provide additional information on the use of the net proceeds from the sale of the offered
securities in an applicable prospectus supplement relating to the offered securities.
GENERAL DESCRIPTION OF THE SECURITIES WHICH MAY BE OFFERED
We may offer from time to time our (i) ordinary shares, (ii) preferred shares, (iii) warrants to purchase ordinary shares, (iv) debt securities, (v) subscription rights to
purchase ordinary shares, debt securities, warrants or other securities offered under this prospectus, (vi) units of our ordinary shares, warrants, preferred shares, debt securities or subscription rights offered under this prospectus, or any
combination thereof, in one or more offerings under this prospectus.
This prospectus contains a summary of the material general terms of these securities that we may offer. The specific terms of the securities will be described in a prospectus
supplement, information incorporated by reference, or free writing prospectus, which may be in addition to or different from the general terms summarized in this prospectus. Where applicable, the prospectus supplement, information incorporated by
reference or free writing prospectus will also describe any material United States federal income tax considerations relating to the securities offered and indicate whether the securities offered are or will be listed on any securities exchange.
The summaries contained in this prospectus and in any prospectus supplements, information incorporated by reference or free writing prospectus may not contain all of the
information that you would find useful. Accordingly, you should read the actual documents relating to any securities sold pursuant to this prospectus and the applicable prospectus supplement. See “Where You Can Find More Information” and
“Incorporation of Certain Information by Reference” for information about how to obtain copies of those documents.
The terms of any particular offering, the initial offering price and the net proceeds to our Company will be contained in the applicable prospectus supplement, information
incorporated by reference or free writing prospectus, relating to such offering. The supplement may also add, update or change information contained in this prospectus. This prospectus and any accompanying prospectus supplement will contain the
material terms and conditions for each security. You should carefully read this prospectus and any prospectus supplement before you invest in any of our securities.
DESCRIPTION OF ORDINARY SHARES
A description of our ordinary shares, par value NIS 50 per share, can be found in Item 10.B. of our 2023 Form 20-F. We are currently authorized to issue 5,000,000 ordinary shares
of which 2,127,322 ordinary shares were outstanding as of December 31, 2024.
On August 22, 2024, we effected at the market level a 1-for-20 reverse split (the “Reverse Split”) of all of our issued and outstanding ordinary shares. As a result of the
Reverse Split, all of our options, warrants and convertible securities outstanding immediately prior to the Reverse Split were adjusted by dividing the number of ordinary shares into which the options and warrants are exercisable and the
convertible securities are convertible by 20 and multiplying the exercise price or the conversion price thereof by 20, all in accordance with the terms of the plans, agreements or arrangements governing such securities.
DESCRIPTION OF PREFERRED SHARES
Our board of directors may from time to time be authorized, subject to any limitations prescribed by law and subject to a vote or action by our shareholders, to issue from time
to time shares of our preferred shares in one or more series. Each such series of preferred shares shall have such number of shares, designations, preferences, voting powers, qualifications, and special or relative rights or privileges as shall be
determined by our board of directors, which may include, among others, dividend rights, voting rights, liquidation preferences, conversion rights and preemptive rights. Issuance of preferred shares by our board of directors may result in such
shares having dividend and/or liquidation preferences senior to the rights of the holders of our ordinary shares and could dilute the voting rights of the holders of our ordinary shares.
Subject to any limitations prescribed by law and subject to a vote or action by our shareholders granting our board of directors the authority to create preferred shares, our
board of directors shall fix for each class or series the designations, powers, preferences, rights, qualifications, limitations and restrictions, including, but not limited to, some or all of the following:
|
• |
the designation of such series, the number of preferred shares to constitute such series and the subscription price thereof if different from the par value;
|
|
• |
whether the preferred shares of such series shall have voting rights, in addition to any voting rights provided by law, and, if so, the terms of such voting rights, which may be general or limited;
|
|
• |
the dividends, if any, payable on such series, whether any such dividends shall be cumulative, and, if so, from what dates, the conditions and dates upon which such dividends shall be payable, and the preference or relation which such
dividends shall bear to the dividends payable on any shares of any other class or any other series of shares;
|
|
• |
whether the preferred shares of such series shall be subject to redemption by our Company, and, if so, the times, prices and other conditions of such redemption;
|
|
• |
whether the preferred shares of such series shall have any rights to receive any part of the assets available for distribution upon the liquidation of our Company, and, if so, the terms of such liquidation preference, and the relation
which such liquidation preference shall bear to the entitlements of the holders of shares of any other class or any other series of shares;
|
|
• |
whether the preferred shares of such series shall be subject to the operation of a retirement or sinking fund and, if so, the extent to and manner in which any such retirement or sinking fund shall be applied to the purchase or
redemption of the preferred shares of such series for retirement or other corporate purposes and the terms and provisions relative to the operation thereof;
|
|
• |
whether the preferred shares of such series shall be convertible into, or exchangeable for, shares of any other class or any other series of preferred shares or any other securities and, if so, the price or prices or the rate or rates of
conversion or exchange and the method, if any, of adjusting the same, and any other terms and conditions of conversion or exchange;
|
|
• |
the limitations and restrictions, if any, to be effective while any preferred shares of such series are outstanding upon the payment of dividends or the making of other distributions on, and upon the purchase, redemption or other
acquisition by our Company of, the existing shares or shares of any other class of shares or any other series of preferred shares;
|
|
• |
the conditions or restrictions, if any, upon the creation of indebtedness of our Company or upon the issue of any additional shares, including additional shares of such series or of any other class of shares or any other series of
preferred shares; and
|
|
• |
any other powers, preferences and relative, participating, optional and other special rights, and any qualifications, limitations and restrictions thereof.
|
We may issue warrants to purchase our ordinary shares. Warrants may be issued independently or together with any other securities and may be attached to, or separate from, such
securities. We will evidence each series of warrants by warrant certificates that we may issue under a separate agreement. We may enter into a warrant agreement with a warrant agent. We may also choose to act as our own warrant agent. We will
indicate the name and address of any such warrant agent in the applicable prospectus supplement relating to a particular series of warrants. The terms of any warrants to be issued and a description of the material provisions of the applicable
warrant agreement will be set forth in the applicable prospectus supplement.
The applicable prospectus supplement will contain, where applicable, the following terms of and other information relating to the warrants:
|
• |
the title of such warrants;
|
|
• |
the aggregate number of such warrants;
|
|
• |
the price or prices at which such warrants will be issued and exercised;
|
|
• |
the currency or currencies in which the price of such warrants will be payable;
|
|
• |
the securities purchasable upon exercise of such warrants;
|
|
• |
the date on which the right to exercise such warrants shall commence and the date on which such right shall expire;
|
|
• |
if applicable, the minimum or maximum amount of such warrants which may be exercised at any one time;
|
|
• |
if applicable, the designation and terms of the securities with which such warrants are issued and the number of such warrants issued with each such security;
|
|
• |
if applicable, the date on and after which such warrants and the related securities will be separately transferable;
|
|
• |
information with respect to book-entry procedures, if any;
|
|
• |
any material Israeli and United States federal income tax consequences;
|
|
• |
the anti-dilution provisions of the warrants, if any; and
|
|
• |
any other terms of such warrants, including terms, procedures and limitations relating to the exchange and exercise of such warrants.
|
Amendments and Supplements to Warrant Agreement
We and the warrant agent may amend or supplement the warrant agreement for a series of warrants without the consent of the holders of the warrants issued thereunder to effect
changes that are not inconsistent with the provisions of the warrants and that do not materially and adversely affect the interests of the holders of the warrants.
Outstanding Warrants
A description of our outstanding warrants can be found in the notes to our financial statements included in our 2023 Form 20-F and in our Post-Effective Amendment No. 1 to our
Registration Statement on Form F-1, filed with the SEC on September 11, 2024.
DESCRIPTION OF SUBSCRIPTION RIGHTS
We may issue subscription rights to purchase our ordinary shares, preferred shares or debt securities. These subscription rights may be issued independently or together with any
other security offered hereby and may or may not be transferable by the shareholder receiving the subscription rights in such offering. In connection with any offering of subscription rights, we may enter into a standby arrangement with one or more
underwriters or other purchasers pursuant to which the underwriters or other purchasers may be required to purchase any securities remaining unsubscribed for after such offering.
The prospectus supplement relating to any subscription rights we offer, if any, will, to the extent applicable, include specific terms relating to the offering, including some
or all of the following:
|
• |
the price, if any, for the subscription rights;
|
|
• |
the exercise price payable for each ordinary share or preferred share upon the exercise of the subscription rights, or the conversion price, if any, of debt securities purchasable upon exercise of the rights;
|
|
• |
the number of subscription rights to be issued to each shareholder;
|
|
• |
the number and terms of the ordinary shares or preferred shares which may be purchased per each subscription right, or the aggregate principal amount of debt securities purchasable upon exercise of the rights;
|
|
• |
the extent to which the subscription rights are transferable;
|
|
• |
any other terms of the subscription rights, including the terms, procedures and limitations relating to the exchange and exercise of the subscription rights;
|
|
• |
the date on which the right to exercise the subscription rights shall commence, and the date on which the subscription rights shall expire;
|
|
• |
the extent to which the subscription rights may include an over-subscription privilege with respect to unsubscribed securities; and
|
|
• |
if applicable, the material terms of any standby underwriting or purchase arrangement which may be entered into by us in connection with the offering of subscription rights.
|
Each right would entitle the holder of the rights to purchase for cash the principal amount of shares of our ordinary shares, preferred shares or debt securities at the exercise
price set forth in the applicable prospectus supplement. Rights may be exercised at any time up to the close of business on the expiration date for the rights provided in the applicable prospectus supplement. After the close of business on the
expiration date, all unexercised rights will become void.
If less than all of the rights issued in any rights offering are exercised, we may offer any unsubscribed securities directly to persons other than our Company’s security
holders, to or through agents, underwriters or dealers or through a combination of such methods, including pursuant to standby arrangements, as described in the applicable prospectus supplement.
The description in the applicable prospectus supplement of any subscription rights we offer will not necessarily be complete and will be qualified in its entirety by reference to
the applicable subscription right agreement, which will be filed with the SEC if we offer subscription rights. For more information on how you can obtain copies of the applicable subscription right agreement if we offer subscription rights, see
“Where You Can Find More Information” beginning on page 14. We urge you to read the applicable subscription right agreement and any applicable prospectus supplement in their entirety.
DESCRIPTION OF DEBT SECURITIES
We may issue debt securities together with other securities or separately, as described in the applicable prospectus supplement, under an indenture to be entered into between
SuperCom Ltd. and the trustee identified in the applicable prospectus supplement. The terms of the debt securities will include those stated in the indenture and those made part of the indenture by reference to the Trust Indenture Act of 1939, as
in effect on the date of the indenture. The indenture will be subject to and governed by the terms of the Trust Indenture Act of 1939.
We may issue the debt securities in one or more series with the same or various maturities, at par, at a premium, or at a discount. We will describe the particular terms of each
series of debt securities in a prospectus supplement relating to that series, which we will file with the SEC.
The prospectus supplement will set forth, to the extent required, the following terms of the debt securities in respect of which the prospectus supplement is delivered:
|
• |
the title of the series;
|
|
• |
the aggregate principal amount;
|
|
• |
the issue price or prices, expressed as a percentage of the aggregate principal amount of the debt securities;
|
|
• |
any limit on the aggregate principal amount;
|
|
• |
the date or dates on which principal is payable;
|
|
• |
the interest rate or rates (which may be fixed or variable) or, if applicable, the method used to determine such rate or rates;
|
|
• |
the date or dates from which interest, if any, will be payable and any regular record date for the interest payable;
|
|
• |
the place or places where principal and, if applicable, premium and interest, is payable;
|
|
• |
the terms and conditions upon which we may, or the holders may require us to, redeem or repurchase the debt securities;
|
|
• |
the denominations in which such debt securities may be issuable, if other than denomination of $1,000, or any integral multiple of that number;
|
|
• |
whether the debt securities are to be issuable in the form of certificated debt securities or global debt securities;
|
|
• |
the portion of principal amount that will be payable upon declaration of acceleration of the maturity date if other than the principal amount of the debt securities;
|
|
• |
the currency of denomination;
|
|
• |
the designation of the currency, currencies or currency units in which payment of principal and, if applicable, premium and interest, will be made;
|
|
• |
if payments of principal and, if applicable, premium or interest, on the debt securities are to be made in one or more currencies or currency units other than the currency of denominations, the manner in which exchange rate with respect
to such payments will be determined;
|
|
• |
if amounts of principal and, if applicable, premium and interest may be determined by reference to an index based on a currency or currencies, or by reference to a commodity, commodity index, stock exchange index, or financial index,
then the manner in which such amounts will be determined;
|
|
• |
the provisions, if any, relating to any collateral provided for such debt securities;
|
|
• |
the terms and conditions, if any, for conversion into or exchange for ordinary shares;
|
|
• |
any depositaries, interest rate calculation agents, exchange rate calculation agents, or other agents; and
|
|
• |
the terms and conditions, if any, upon which the debt securities shall be subordinated in right of payment to other indebtedness of our Company.
|
One or more debt securities may be sold at a substantial discount below their stated principal amount. We may also issue debt securities in bearer form, with or without coupons.
If we issue discount debt securities or debt securities in bearer form, we will describe material U.S. federal income tax considerations and other material special considerations which apply to these debt securities in the applicable prospectus
supplement.
We may issue debt securities denominated in or payable in a foreign currency or currencies or a foreign currency unit or units. If we do, we will describe the restrictions,
elections, and general tax considerations relating to the debt securities and the foreign currency or currencies or foreign currency unit or units in the applicable prospectus supplement.
The debt securities of a series may be issued in whole or in part in the form of one or more global securities that will be deposited with, or on behalf of, a depositary
identified in the prospectus supplement. Global securities will be issued in registered form and in either temporary or definitive form. Unless and until it is exchanged in whole or in part for individual debt securities, a global security may not
be transferred except as a whole by the depositary for such global security to a nominee of such depositary or by a nominee of such depositary to such depositary or another nominee of such depositary or by such depositary or any such nominee to a
successor of such depositary or a nominee of such successor. The specific terms of the depositary arrangement with respect to any debt securities of a series and the rights of and limitations upon owners of beneficial interests in a global security
will be described in the applicable prospectus supplement.
We may issue units comprised of one or more of the securities that may be offered under this prospectus, in any combination. Each unit will be issued so that the holder of the
unit is also the holder of each security included in the unit. Thus, the holder of a unit will have the rights and obligations of a holder of each included security. The unit agreement under which a unit is issued may provide that the securities
included in the unit may not be held or transferred separately at any time, or at any time before a specified date.
The prospectus supplement relating to any units we offer, if any, will, to the extent applicable, include specific terms relating to the offering, including some or all of the
following:
|
• |
the material terms of the units and of the securities comprising the units, including whether and under what circumstances those securities may be held or transferred separately;
|
|
• |
any material provisions relating to the issuance, payment, settlement, transfer or exchange of the units or of the securities comprising the units; and
|
|
• |
any material provisions of the governing unit agreement that differ from those described above.
|
The description in the applicable prospectus supplement of any units we offer will not necessarily be complete and will be qualified in its entirety by reference to the
applicable unit agreement, which will be filed with the SEC if we offer units. For more information on how you can obtain copies of the applicable unit agreement if we offer units, see “Where You Can Find More Information” beginning on page 14. We
urge you to read the applicable unit agreement and any applicable prospectus supplement in their entirety.
The securities being offered by this prospectus may be sold:
|
• |
to or through one or more underwriters on a firm commitment or agency basis;
|
|
• |
through put or call option transactions relating to the securities;
|
|
• |
to or through dealers, who may act as agents or principals, including a block trade (which may involve crosses) in which a broker or dealer so engaged will attempt to sell as agent but may position and resell a portion of the block as
principal to facilitate the transaction;
|
|
• |
through privately negotiated transactions;
|
|
• |
purchases by a broker or dealer as principal and resale by such broker or dealer for its own account pursuant to this prospectus;
|
|
• |
directly to purchasers, including our affiliates, through a specific bidding or auction process, on a negotiated basis or otherwise; to or through one or more underwriters on a firm commitment or best efforts basis;
|
|
• |
exchange distributions and/or secondary distributions;
|
|
• |
ordinary brokerage transactions and transactions in which the broker solicits purchasers;
|
|
• |
in “at-the-market” offerings, within the meaning of Rule 415(a)(4) of the Securities Act to or through a market maker or into an existing trading market, on an exchange or otherwise;
|
|
• |
transactions not involving market makers or established trading markets, including direct sales or privately negotiated transactions;
|
|
• |
transactions in options, swaps or other derivatives that may or may not be listed on an exchange or
|
|
• |
through any other method permitted pursuant to applicable law; or
|
|
• |
through a combination of any such methods of sale.
|
At any time a particular offer of the securities covered by this prospectus is made, a revised prospectus or prospectus supplement, if required, will be distributed which will
set forth the aggregate amount of securities covered by this prospectus being offered and the terms of the offering, including the name or names of any underwriters, dealers, brokers or agents, any discounts, commissions, concessions and other
items constituting compensation from us and any discounts, commissions or concessions allowed or reallowed or paid to dealers. Such prospectus supplement, and, if necessary, a post-effective amendment to the registration statement of which this
prospectus is a part, will be filed with the SEC to reflect the disclosure of additional information with respect to the distribution of the securities covered by this prospectus. In order to comply with the securities laws of certain states, if
applicable, the securities sold under this prospectus may only be sold through registered or licensed broker-dealers. In addition, in some states the securities may not be sold unless they have been registered or qualified for sale in the
applicable state or an exemption from registration or qualification requirements is available and is complied with.
The distribution of securities may be effected from time to time in one or more transactions, including block transactions and transactions on the NASDAQ Capital Market or any
other organized market where the securities may be traded. The securities may be sold at a fixed price or prices, which may be changed, or at market prices prevailing at the time of sale, at prices relating to the prevailing market prices or at
negotiated prices. The consideration may be cash or another form negotiated by the parties. Agents, underwriters or broker-dealers may be paid compensation for offering and selling the securities. That compensation may be in the form of discounts,
concessions or commissions to be received from us or from the purchasers of the securities. Any dealers and agents participating in the distribution of the securities may be deemed to be underwriters, and compensation received by them on resale of
the securities may be deemed to be underwriting discounts. If any such dealers or agents were deemed to be underwriters, they may be subject to statutory liabilities under the Securities Act.
Agents may from time to time solicit offers to purchase the securities. If required, we will name in the applicable prospectus supplement any agent involved in the offer or sale
of the securities and set forth any compensation payable to the agent. Unless otherwise indicated in the prospectus supplement, any agent will be acting on a best efforts basis for the period of its appointment. Any agent selling the securities
covered by this prospectus may be deemed to be an underwriter, as that term is defined in the Securities Act, of the securities.
If underwriters are used in a sale, securities will be acquired by the underwriters for their own account and may be resold from time to time in one or more transactions,
including negotiated transactions, at a fixed public offering price or at varying prices determined at the time of sale, or under delayed delivery contracts or other contractual commitments. Securities may be offered to the public either through
underwriting syndicates represented by one or more managing underwriters or directly by one or more firms acting as underwriters. If an underwriter or underwriters are used in the sale of securities, an underwriting agreement will be executed with
the underwriter or underwriters, as well as any other underwriter or underwriters, with respect to a particular underwritten offering of securities, and will set forth the terms of the transactions, including compensation of the underwriters and
dealers and the public offering price, if applicable. The prospectus and prospectus supplement will be used by the underwriters to resell the securities.
If a dealer is used in the sale of the securities, we or an underwriter will sell the securities to the dealer, as principal. The dealer may then resell the securities to the
public at varying prices to be determined by the dealer at the time of resale. To the extent required, we will set forth in the prospectus supplement the name of the dealer and the terms of the transactions.
We may directly solicit offers to purchase the securities and may make sales of securities directly to institutional investors or others. These persons may be deemed to be
underwriters within the meaning of the Securities Act with respect to any resale of the securities. To the extent required, the prospectus supplement will describe the terms of any such sales, including the terms of any bidding or auction process,
if used.
Agents, underwriters and dealers may be entitled under agreements which may be entered into with us to indemnification by us against specified liabilities, including liabilities
incurred under the Securities Act, or to contribution by us to payments they may be required to make in respect of such liabilities. If required, the prospectus supplement will describe the terms and conditions of the indemnification or
contribution. Some of the agents, underwriters or dealers, or their affiliates may be customers of, engage in transactions with or perform services for us or our subsidiaries.
Any person participating in the distribution of securities registered under the registration statement that includes this prospectus will be subject to applicable provisions of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the applicable SEC rules and regulations, including, among others, Regulation M, which may limit the timing of purchases and sales of any of our securities by that person.
Furthermore, Regulation M may restrict the ability of any person engaged in the distribution of our securities to engage in market-making activities with respect to our securities. These restrictions may affect the marketability of our securities
and the ability of any person or entity to engage in market-making activities with respect to our securities.
Certain persons participating in an offering may engage in over-allotment, stabilizing transactions, short-covering transactions, penalty bids and other transactions that
stabilize, maintain or otherwise affect the price of the offered securities. These activities may maintain the price of the offered securities at levels above those that might otherwise prevail in the open market, including by entering stabilizing
bids, effecting syndicate covering transactions or imposing penalty bids, each of which is described below.
|
• |
A stabilizing bid means the placing of any bid, or the effecting of any purchase, for the purpose of pegging, fixing or maintaining the price of a security.
|
|
• |
A syndicate covering transaction means the placing of any bid on behalf of the underwriting syndicate or the effecting of any purchase to reduce a short position created in connection with the offering.
|
|
• |
A penalty bid means an arrangement that permits the managing underwriter to reclaim a selling concession from a syndicate member in connection with the offering when offered securities originally sold by the syndicate member are
purchased in syndicate covering transactions.
|
These transactions may be effected on an exchange or automated quotation system, if the securities are listed on that exchange or admitted for trading on that automated quotation
system, or in the over-the-counter market or otherwise.
If so indicated in the applicable prospectus supplement, we will authorize agents, underwriters or dealers to solicit offers from certain types of institutions to purchase
offered securities from us at the public offering price set forth in such prospectus supplement pursuant to delayed delivery contracts providing for payment and delivery on a specified date in the future. Such contracts will be subject only to
those conditions set forth in the prospectus supplement and the prospectus supplement will set forth the commission payable for solicitation of such contracts.
In addition, ordinary shares may be issued upon conversion of or in exchange for debt securities or other securities.
Any underwriters to whom offered securities are sold for public offering and sale may make a market in such offered securities, but such underwriters will not be obligated to do
so and may discontinue any market making at any time without notice. The offered securities may or may not be listed on a national securities exchange. No assurance can be given that there will be a market for the offered securities.
Any securities that qualify for sale pursuant to Rule 144 or Regulation S under the Securities Act, may be sold under Rule 144 or Regulation S rather than pursuant to this
prospectus.
To the extent that we make sales to or through one or more underwriters or agents in at-the-market offerings, we will do so pursuant to the terms of a distribution agreement
between us and the underwriters or agents. If we engage in at-the-market sales pursuant to a distribution agreement, we will sell our ordinary shares to or through one or more underwriters or agents, which may act on an agency basis or on a
principal basis. During the term of any such agreement, we may sell ordinary shares on a daily basis in exchange transactions or otherwise as we agree with the underwriters or agents. The distribution agreement will provide that any ordinary shares
sold will be sold at prices related to the then prevailing market prices for our ordinary shares. Therefore, exact figures regarding proceeds that will be raised or commissions to be paid cannot be determined at this time and will be described in a
prospectus supplement. Pursuant to the terms of the distribution agreement, we also may agree to sell, and the relevant underwriters or agents may agree to solicit offers to purchase blocks of our ordinary shares or warrants. The terms of each such
distribution agreement will be set forth in more detail in a prospectus supplement to this prospectus.
In connection with offerings made through underwriters or agents, we may enter into agreements with such underwriters or agents pursuant to which we receive our outstanding
securities in consideration for the securities being offered to the public for cash. In connection with these arrangements, the underwriters or agents may also sell securities covered by this prospectus to hedge their positions in these outstanding
securities, including in short sale transactions. If so, the underwriters or agents may use the securities received from us under these arrangements to close out any related open borrowings of securities.
We may enter into derivative transactions with third parties or sell securities not covered by this prospectus to third parties in privately negotiated transactions. If the
applicable prospectus supplement indicates, in connection with those derivatives, such third parties (or affiliates of such third parties) may sell securities covered by this prospectus and the applicable prospectus supplement, including in short
sale transactions. If so, such third parties (or affiliates of such third parties) may use securities pledged by us or borrowed from us or others to settle those sales or to close out any related open borrowings of shares, and may use securities
received from us in settlement of those derivatives to close out any related open borrowings of shares. The third parties (or affiliates of such third parties) in such sale transactions will be underwriters and, if not identified in this
prospectus, will be identified in the applicable prospectus supplement (or a post-effective amendment).
We may loan or pledge securities to a financial institution or other third party that in turn may sell the securities using this prospectus. Such financial institution or third
party may transfer its short position to investors in our securities or in connection with a simultaneous offering of other securities offered by this prospectus or in connection with a simultaneous offering of other securities offered by this
prospectus.
Certain legal matters with respect to Israeli law and with respect to the validity of the offered securities under Israeli law will be passed upon for us by S. Friedman & Co.
Certain legal matters with respect to U.S. federal securities law and New York law will be passed upon for us by Foley Shechter Ablovatskiy LLP. Additional legal matters may be passed upon for us or any underwriters, dealers or agents, by counsel
that we will name in the applicable prospectus supplement.
The Company’s consolidated financial statements as of December 31, 2023 and 2022, and the related consolidated statements of operation and comprehensive loss, changes in
stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2023, and the related notes, incorporated by reference in this prospectus and elsewhere in the registration statement have been so incorporated
by reference in reliance on the report of Yarel + Partners, Certified Public Accountant (Isr.), an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.
WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration statement on Form F-3 under the Securities Act, with respect to the securities offered by this prospectus. However, as is permitted by
the rules and regulations of the SEC, this prospectus, which is part of our registration statement on Form F-3, omits certain non-material information, exhibits, schedules and undertakings set forth in the registration statement. For further
information about us, and the securities offered by this prospectus, please refer to the registration statement.
We are subject to the reporting requirements of the Exchange Act that are applicable to a foreign private issuer. In accordance with the Exchange Act, we file reports, including
Annual Reports on Form 20-F by April 30 of each year. We also furnish to the SEC under cover of Form 6-K material information required to be made public in Israel, filed with and made public by any stock exchange or distributed by us to our
shareholders.
The registration statement on Form F-3 of which this prospectus forms a part, including the exhibits and schedules thereto, and reports and other information filed by us with the
SEC may be inspected without charge and copied at prescribed rates at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Copies of this material are also available by mail from the Public Reference Section of the SEC, at
100 F. Street, N.E., Washington D.C. 20549, at prescribed rates. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy
and information statements, and other information regarding issuers, such as us, that file electronically with the SEC (http://www.sec.gov).
As a foreign private issuer, we are exempt from the rules under the Exchange Act prescribing the furnishing and content of proxy statements to shareholders and our officers,
directors and principal shareholders are exempt from the “short-swing profits” reporting and liability provisions contained in Section 16 of the Exchange Act and related Exchange Act rules.
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
We file annual and special reports and other information with the SEC. These filings contain important information which does not appear in this prospectus. The SEC allows us to
“incorporate by reference” information into this prospectus, which means that we can disclose important information to you by referring you to other documents which we have filed or will file with the SEC. We are incorporating by reference in this
prospectus the documents listed below and all amendments or supplements we may file to such documents, as well as any future filings we may make with the SEC on Form 20-F under the Exchange Act before the time that all of the securities offered by
this prospectus have been sold or de-registered:
|
• |
our Annual Report on Form 20-F/A for the fiscal year ended on December 31, 2023, filed with the SEC on August 14, 2024; |
|
• |
our Report on Form 6-K, filed with the SEC on September 3, 2024, that contains our unaudited condensed consolidated interim
financial statements as of and for the six months ended June 30, 2024; |
|
• |
our Registration Statement on Form 8-A, filed with the SEC on September 12, 2013 under the Exchange Act, that contains
the description of our ordinary shares and any amendment or report filed with the SEC for the purpose of updating that description; |
|
• |
our Post-Effective Amendment No. 1 to our Registration Statement on Form F-1, filed with the SEC on September 11, 2024, that contains the
description of certain of our outstanding warrants; |
|
• |
any annual or periodic reports, including on Form 20-F, filed with the SEC pursuant to the Exchange Act after the date of this prospectus and prior to the termination of the offerings of the securities under this prospectus (except
to the extent such reports are furnished but not filed with the SEC); and
|
|
• |
any Report on Form 6-K submitted to the SEC after the date of this prospectus and prior to the termination of the offerings of the securities under this prospectus, but only to the extent that the forms expressly state that we
incorporate them by reference in this prospectus.
|
Certain statements in and portions of this prospectus update and replace information in the above listed documents incorporated by reference. Likewise, statements in or portions
of a future document incorporated by reference in this prospectus may update and replace statements in and portions of this prospectus or the above listed documents.
We will provide you without charge, upon your written or oral request, a copy of any of the documents incorporated by reference in this prospectus, other than exhibits to such
documents which are not specifically incorporated by reference into such documents. Please direct your written or telephone requests to SuperCom Ltd., 3 Rothschild Street, Tel-Aviv, Israel, Attn: Ordan Trabelsi, Chief Executive Officer, telephone
number +972 (9) 889-0850. You may also obtain information about us by visiting our website at www.supercom.com. Information contained in our website is not part of this prospectus.
The information relating to us contained in this prospectus is not comprehensive and should be read together with the information contained in the incorporated documents.
Descriptions contained in the incorporated documents as to the contents of any contract or other document may not contain all the information which is of interest to you. You should refer to the copy of such contract or other document filed as an
exhibit to our filings.
ENFORCEABILITY OF CIVIL LIABILITIES
We are incorporated under the laws of the State of Israel. Service of process upon us and upon our directors and officers and the Israeli experts named in this prospectus,
substantially all of whom reside outside the United States, may be difficult to obtain within the United States. Furthermore, because substantially all of our assets and substantially all of our directors and officers are located outside the United
States, any judgment obtained in the United States against us or any of our directors and officers may not be collectible within the United States.
It may be difficult to assert U.S. securities law claims in original actions instituted in Israel. Israeli courts may refuse to hear a claim based on a violation of
U.S. securities laws because Israel is not the most appropriate forum to bring such a claim. In addition, even if an Israeli court agrees to hear a claim, it may determine that Israeli law and not U.S. law is applicable to the claim. If U.S. law is
found to be applicable, the content of applicable U.S. law must be proved as a fact which can be a time-consuming and costly process. Certain matters of procedure will also be governed by Israeli law.
Subject to specified time limitations and legal procedures, Israeli courts may enforce a United States judgment in a civil matter which, subject to certain exceptions, is
non-appealable, including judgments based upon the civil liability provisions of the Securities Act and the Exchange Act and including a monetary or compensatory judgment in a non-civil matter, provided that:
|
• |
the judgments are obtained after due process before a court of competent jurisdiction, according to the laws of the state in which the judgment is given and the rules of private international law currently prevailing in Israel;
|
|
• |
the prevailing law of the foreign state in which the judgments were rendered allows the enforcement of judgments of Israeli courts (however, the Israeli courts may waive this requirement following a request by the attorney general);
|
|
• |
adequate service of process has been effected and the defendant has had a reasonable opportunity to be heard and to present his or her evidence;
|
|
• |
the judgments are not contrary to public policy, and the enforcement of the civil liabilities set forth in the judgment does not impair the security or sovereignty of the State of Israel;
|
|
• |
the judgments were not obtained by fraud and do not conflict with any other valid judgment in the same matter between the same parties;
|
|
• |
an action between the same parties in the same matter is not pending in any Israeli court at the time the lawsuit is instituted in the foreign court; and
|
|
• |
the obligations under the judgment are enforceable according to the laws of the State of Israel and according to the law of the foreign state in which the relief was granted.
|
We have irrevocably appointed SuperCom, Inc. as our agent to receive service of process in any action against us in any United States federal or state court arising out of this
offering or any purchase or sale of securities in connection with this offering.
If a foreign judgment is enforced by an Israeli court, it generally will be payable in Israeli currency, which can then be converted into non-Israeli currency and transferred out
of Israel. The usual practice in an action before an Israeli court to recover an amount in a non-Israeli currency is for the Israeli court to issue a judgment for the equivalent amount in Israeli currency at the rate of exchange in force on the
date of the judgment, but the judgment debtor may make payment in foreign currency. Pending collection, the amount of the judgment of an Israeli court stated in Israeli currency ordinarily will be linked to the Israeli consumer price index plus
interest at the annual statutory rate set by Israeli regulations prevailing at the time. Judgment creditors must bear the risk of unfavorable exchange rates.
The following table sets forth the expenses (other than underwriting discounts and commissions or agency fees and other items constituting underwriters’ or agents’ compensation,
if any) expected to be incurred by us in connection with a possible offering of securities registered under this registration statement.
|
SEC registration fees
|
|
$
|
7,655
|
|
|
FINRA fees
|
|
|
*
|
|
|
Legal fees and expenses
|
|
|
*
|
|
|
Accountants fees and expenses
|
|
|
*
|
|
|
Miscellaneous
|
|
|
*
|
|
|
Total
|
|
$
|
7,655
|
|
* These fees are calculated based on the number of issuances and amount of securities offered and accordingly cannot be estimated at this time. An estimate of the aggregate amount of these expenses
will be reflected in the applicable prospectus supplement or a Report on Form 6-K that is incorporated by reference into this prospectus.
545,454 Ordinary Shares
SUPERCOM LTD.
PROSPECTUS
MAXIM GROUP LLC
The date of this prospectus supplement is January 30, 2025.
