Cellenium, Alon USA Sign Cooperation Agreement
Cellenium’s potential revenue from the agreement - $10M
Nir Goldberg, Globes Business Arena 10.16.2001
Elbit (ELBTF) subsidiary Cellenium has signed an operating rights and service provision agreement with Alon USA. Alon USA operates 1,700 gas stations under the Fina brand and 174 7-Eleven stores in the US. The agreement includes the franchising and operation of cellular commercial services through cellular telephones at Fina gas stations. Cellenium’s potential revenue from the agreement, which constitutes the first stage of joint operations, is $10 million.
The placing of Cellenium's system, called Cell-F, in Fina gas stations will allow customers to use cellular telephones to operate gas pumps and pay for the fuel and other goods and services, including purchases from vending machines, car washes, and purchases of goods from the convenience stores at the gas stations.
The system will also allow personalized sales promotions via cellular telephones, and will provide e-coupons that will eliminate the need for receipts, stamps and papers, thereby giving customers immediate benefits.
Alon USA is a subsidiary of Alon Israel, which is owned by David Weismann and Shragga Biran. Cellenium recently launched its Cell-F service at 50 Alon and Dor gas stations in Israel in cooperation with Cellcom. Cellenium has 60 employees. It is jointly owned by Elbit and Cellenium CEO Shaul Shalev in equal shares.
Cellenium chairman Dan Jacoby said the relationship with Alon began over a year ago. "Shaul approached Dor Energy with an offer even before it was acquired by Alon. After the acquisition, the cooperation between the companies picked up, and Alon decided to provide Cellenium with services for Fina."
"For Cellenium, the agreement is a clear sign of the transition from the development to the sales stage. The transition is very important in the life of a start-up."
"Globes": Will you provide your service to all of Fina's 1,700 gas stations operated by Alon?
Jacoby: "We ultimately plan to provide the service at all 1,700 gas stations, but we will install the system in 100 stations in the first stage, and there's definitely the potential that we'll install it in the remaining stations."
What is your potential revenue from the Alon agreement?
"If we provide the service at all 1,700 gas stations, the potential revenue reaches $10 million. The revenue depends on the installation rate, which will take over a year."
Do you have plans for a financing round?
"Not at the moment. After the Elron-Elbit merger is completed, we will decide how to raise money and act accordingly. I must state that there's great interest in the company from potential investors."