Daily Roundup / Modiin Writes Off Sara and Myra, ILDC Energy Doesn't

Banks settle suit for deducting too much tax at source on capital gains; experimental drug against pancreatic cancer passes test.

Well, well, maybe not so well: Energy exploration company Modiin doesn't understand its partner, it appears. ILDC Energy decided not to write off investment in the Sara and Myra gas prospects, which came up dry, although its partner in the prospects, Modiin, wrote off the NIS 252 million investment in full. On Monday Modiin stated that the pertinent information in ILDC Energy's financial report, with its evaluation of the two prospects, had not been coordinated with itself. Also, while ILDC Energy estimated the value of the prospects at NIS 95 million, Modiin said, it would not itself be changing the way it booked the affair. In other words, while ILDC Energy seems to think there's value in them thar deep-sea wells, Modiin shall continue to value them at zero.

Pay-back time for banks: A class-action suit against four banks, which deducted too much tax at source on capital gains by clients, ended in a whimper in the Tel Aviv District Court on Monday. The four, Leumi, First International, Mizrahi-Tefahot and Union Bank had been sued in 2008 for NIS 43 million and have now agreed in a settlement to pay a combined NIS 860,000 to the general public. Since it isn't practical to give the money to everybody, the court ruled, the award will be handed over to two charity associations, Ezer Mizion and Melabev. The lead plaintiff, Noah Perlman, will be getting NIS 41,000.

Click up: Shares of Clicksoftware, which makes software to optimize customer-service systems, rose 2.5% on Nasdaq after the company predicted a 25% jump in revenues this year. Clicksoftware, which had lost 30% from its peak market value in March 2012, delivered its guidance with its results for million for the fourth quarter of 2012, including adjusted profit (not including one-time items) of $4.2 million, well above analyst expectations. Revenues for the year 2012 came to $100 million, a figure Clicksoftware expects to grow to $120-125 million this year.

Biomed plunge: Shares of biomed company Can-Fite plunged more than 20% on Monday after the company published a shelf prospectus at a deep discount to its share price on the Tel Aviv Stock Exchange. The company plans to raise NIS 22 million in an offering of shares and warrants. Full exercise of the warrants will enable the company to raise NIS 27 million more. American biomed investment funds are expected to invest NIS 9.2 million and pledges for NIS 15 million more have been received.

Phase I complete: In another area of biomed, shares of Biocancell jumped 32% on Monday after the company announced good result from Phase I testing of its drug under development to treat pancreatic cancer, a usually incurable condition. Turnover in Biocancell stock was NIS 2.2 million, not exactly a princely sum in market terms but still 12 times its average daily volume of trade. The clinical trial tested the efficacy and safety of BC-819 used in tandem with the standard chemotherapeutic drug for pancreatic cancer, Gemzar. The test, however, was conducted on just 11 patients. The disease progression halted among the six patients given heavy dosages of BC-819, Biocancell said. Among the five given a lower dose of the drug, the disease stopped progressing in three. No serious side effects were reported in any of the patients. Shares of Biocancell's parent company, Clal Biotechnology, rose 7% on Monday.

Not so fast, say bondholders to Hamashbir: Bondholders of Hamashbir Lazarchan suspect that money the company makes from selling its subsidiary Cibus Meals – a deal for NIS 71 million is in place – could be used to pay dividends to shareholders, rather than shore up the company's finances. On Monday the bondholders, who are owed NIS 68 million, directed their rep to demand the company not even contemplate the notion of a dividend payout. Hamashbir isn't anywhere near the need to reschedule debt, au contraire, the company stated yesterday, and accused its bondholders of crass and needless interference in the company's affairs.

Reuters