Azorim Investment, Development and Construction Ltd. (TASE: AZRM), under its new ownership, has sold a lot in Toronto for NIS 90 million, half of which will go toward repaying the loan on the project to a Canadian bank. The company expects to report a profit of NIS 17 million on the sale.
Canada's Hershy Friedman bought Azorim from Shaya Boymelgreen two months ago, and unlike his predecessor, Friedman has capital to invest in the company. Friedman injected NIS 64 million into Azorim as part of a NIS 100 million rights issue.
Friedman said, "The success of the rights issue and the participation of most of the shareholders were definitely a vote of confidence in Azorim's new path. The proceeds of the issue will strengthen the company's capital structure, and give it business flexibility. I have full confidence in the company's management and in Azorim's ability to realize its great potential, and to properly exploit market opportunities."
Azorim's share price has fallen 25% since Friedman acquired the 64% controlling interest in the company for NIS 300 million. The company posted a rare net profit of NIS 27 million on NIS 263 million revenue for the first quarter of 2011.
Azorim's share price fell 2.3% in morning trading today to NIS 7.55, giving a market cap of NIS 424 million.
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