Shares in tech stock Mobilicom (ASX:MOB) rose as much as 20 per cent this morning after Israeli investment fund Psagot chipped in over $3.6 million.

Psagot is Israel’s largest pension fund manager, controlling NIS180 billion ($70 billion) of assets. It has agreed to invest $3.65 million in Mobilicom consisting of 64 million shares at 6 cents each and another 64 million options.

Mobilicom specialises in communications and technologies enabling drones to communicate with each other or send data back to a central database.

The global commercial drone market generally is tipped to explode in the coming years, predicted by Fortune Business Insights to hit US$8.5 million by 2027 which would represent five-fold growth from 2019.

The industry has been helped by increased defence spending as well as relaxation of restrictions on drones, particularly in Europe.

 

Psagot investment ‘evidence of our potential’

Psagot’s CIO Gat Megiddo said Mobilicom was positioned to be at the forefront of the drones and robotics revolution.

“We believe in the company’s focused strategy, that differentiates it from other players as a one-stop-shop for all smart solutions, software, hardware and cybersecurity for this market,” he said.

“The funding will enable Mobilicom to execute its growth strategy to be a Tier-1 provider in this market.”

Mobilicom CEO Oren Elkayam welcomed the investment saying it validated his company.

“The fact that such a large institutional equity investment house decided to take a significant stake in Mobilicom and support its growth strategy going forward, is evidence of our potential in the drones and robotics market revolution and the company’s uniqueness as an end to end provider of cybersecurity and smart solutions for drone and robotics and autonomous platforms,” he declared.

Mobilicom shares initially rose by as much as 20 per cent this morning but lost some of that ground as trading progressed.

Mobilicom (ASX:MOB) share price chart

 

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