Highcon Systems Ltd. has confirmed a strategic collaboration with Sealed Air Corporation. The collaboration will include an $8m investment by Sealed Air and focus on the development of new products offerings, expansion into new segments, and enabling manufacturing efficiencies by leveraging Highcon technology. The scope of the strategic collaboration includes the following components:
- Developing new product offerings, expansion into new segments and enabling manufacturing efficiencies by leveraging Highcon technology;
- $8m investment in the form of convertible debt and 15% warrants to be converted by the fifth anniversary of the Effective Date at a price of 3.1 NIS per share;
- Additional warrants to be granted against possible future purchases up to $20m of Highcon’s products and services over a period of three years.
The strategic collaboration includes the purchasing of a Highcon Beam 2C system for delivery and installation in the first quarter of 2023. The in-house presence of the system will allow SEE to accelerate the testing of new designs and products, as well as the manufacturing and delivery of corrugated products to the company’s customers.
“Over the past months, the SEE team has been really impressed with the talent at Highcon and the company’s culture. Highcon’s technology and capabilities represent a meaningful opportunity for SEE,” said Sergio Pupkin, SVP and Chief Growth & Strategy Officer, SEE. “Highcon’s sustainability value proposition aligns with and can help us advance our vision and plans. The roadmap we are developing together is exciting, and our investment in Highcon is a natural first step in this context.”
“SEE is taking Highcon’s technology to places that were beyond the way that we typically defined our market opportunity. Growing that opportunity, entering new application spaces, and working together with a world class partner is exciting,” said Shlomo Nimrodi, CEO, Highcon. “It’s particularly gratifying to see how SEE reacted to the talent and passions of the Highcon team, and their recognition of the strategic value of our technology. I’m confident that it’s just the beginning as we prove our value to SEE to enable further expansion of our relationship. I’m proud of what we’ve built so far at Highcon, and with this strategic partnership, we can move farther and faster. We are certainly expecting that this collaboration will have positive impact on the company’s existing business.”