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Bringing Innovations to Market: Private Military Tech Company Going Public

Stockhouse Editorial
0 Comments| December 20, 2019

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Click to enlarge
(Image via A2Z Technologies Canada)


Click to enlargeWhat do the internet, duct tape, the Jeep, and superglue have in common? You might not have guessed it, but they all came from the military.

Many life-changing and commonplace products started in military facilities. Working with extremely specific needs and demands, engineers have been able to develop technology that is so useful that it often makes its way to civilian life.

By the time the companies behind these products go public, major institutional investors have usually soaked up all the opportunity leaving little upside for retail investors. That’s why a lot of heads turned when one of the biggest military robotics innovators in Israel announced it is going to go public in Canada.

Monday, Decemer 23rd marks the start of trading for A2Z Technologies Canada Corp. (TSX-V:AZ). The tech innovator is a well-known supplier of military defense technology and services, including unmanned robotics and state-of-the-art automation and electronics technology. Throughout its 30-year history, A2Z has become one of the most established robotics companies in Israel.

In fact, A2Z’s base of over 75 recurring clients include Israel’s largest government organizations including Israel’s Ministry of Defence. Between customers like the Israeli Defense Forces, the Israeli Police, Israel Electric, and Israel Railways, A2Z is able to generate stable cash flows through their long-term service contracts.

Click to enlarge
(Image via A2Z Technologies Canada)

Now A2Z is looking at expanding to the civilian market, and going public is a major step. Given their innovative and proven technologies actively being used in military situations, the team at A2Z knew they had an enormous opportunity to develop consumer oriented solutions to the same problems faced by the military. Many companies before them have turned military research and technology into successful consumer products and A2Z is positioned to follow the same path.

Leading the way is President and CEO Bentsur Joseph, a veteran entrepreneur with a track record that speaks for itself. Previously, Bentsur was the Chairman of Elad Hotels, part of the multibillion dollar real estate company of businessman Isaac Tshuva that owned the Plaza Hotel in New York City untl 2018. He also has extensive tech experience as a former Director of public holding company MARLAZ and through multiple former executive positions at Comfy Interactive Movies, an edutainment company purchased by Shamrock Holdings, the private equity firm founded by Roy Disney to invest his personal wealth.

The majority of A2Z’s products have been military or state-commissioned, and as such sales and distribution are heavily restricted for national security reasons. That said, the R&D and underlying technology that A2Z has developed can be repurposed for mass-market solutions to similar problems. One of these problems is the risk of a car collision resulting in a fire.

The first product A2Z has announced re-purposes technology developed for the military to save lives in the event of a crash-related vehicle fire. The Fuel Tank Inertia Capsule System (FTICS) is a proprietary, patented safety device that neutralizes the flammable contents of a gas tank and is linked to the airbag deployment system so it only activates in the event of a collision.

In the US alone, the National Fire Protection Association estimates that 171,500 highway vehicle fires occurred from 2014 to 2016, resulting in annual averagesof 345 deaths, 1,300 injuries, and over $1.1 billion in property loss. The FTICS system has the potential to revolutionize motor safety and is a multibillion dollar opportunity for A2Z.

The rollout strategy for the FTICS leverages A2Z’s decades-long relationship with the Israeli Ministry of Defence. Through its relationship with the Israeli military, A2Z is planning to conduct a pilot program with the Israel Defense Forces civilian vehicles in 2020. Once completed, A2Z aims to initiate trials with auto manufacturers directly.

Click to enlarge
(Image via A2Z Technologies Canada)

A2Z also has a massive regulatory opportunity with the FTICS. Success in the initial pilot with the Israeli military will be leveraged towards a push to make the system mandatory across all of Israel, a country that places a premium on motor safety. Likewise, there is an increasing international call for A2Z’s safety innovation, as the Swedish Transport Administration has proposed that the automotive industry work on adopting systems that reduce flammability in fuel tanks.

What other products can we expect from the tech-savvy A2Z? In the automotive industry A2Z has also offered details on a patented smart car cover equipped with heating elements that keeps cars snow-free in the winter and retracts into the bumper.

Beyond the automotive industry, A2Z’s portfolio of unmanned robotics have natural applications in agriculture, firefighting, and other public safety use-cases. So far the Company is staying tight-lipped on additional products and partnerships. Considering that we’re talking about an robotics company that specializes in unmanned military robotics, you can definitely expect more exciting products that fit specific industry needs.


(Video via A2Z Technologies Canada)




FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.


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