Storage Drop Stock Plummets 98% Amid Project Halt and Financial Woes
Translated & summarized from Ice by baba
The stock of energy firm Storage Drop, previously led by politician Gadi Eisenkot, has crashed by over 98%, from 260 million shekels to 4 million. The company halted its flagship project with Tnuva due to infrastructure issues, facing significant financial losses and a "going concern" warning from auditors. Storage Drop is also developing a separate cooling system with EU funding, but it is not yet generating revenue.
The story in 5 lines · by baba
- Storage Drop stock value has collapsed by over 98%, from 260 million to 4 million shekels.
- The company halted its flagship air compression project with Tnuva due to infrastructure deficiencies.
- Storage Drop faces severe financial difficulties, with significant losses and low cash reserves.
- Auditors issued a "going concern" warning regarding the company's ability to continue operations.
- Gadi Eisenkot chaired Storage Drop before entering politics in late 2022.
The stock of energy company Storage Drop, formerly chaired by politician Gadi Eisenkot, has plummeted by over 98% of its value. Eisenkot led the company as chairman from April 2021 until entering politics in late 2022. Storage Drop, which merged with a shell company in July 2021 at a valuation of approximately 260 million shekels, now has a market capitalization of only about 4 million shekels.
The company's business, focused on air compression and energy storage technologies, suffered a significant setback this week with the suspension of its flagship project with the Tnuva concern. Storage Drop announced a halt to the construction of an air compression facility at Tnuva's plant in Alon Tavor, just a month before its scheduled completion. This suspension is due to complex infrastructure deficiencies discovered at the site.
While the agreement has not been canceled, the company acknowledged serious doubts about resolving the issues, as the high repair costs could jeopardize the project's economic viability. The project's potential annual revenue was previously estimated at 1 million shekels. This halt is a major blow to a company struggling to generate substantial commercial activity, having reported only 19,000 shekels in revenue and a 1.46 million shekel operating loss in the first half of 2026.
Storage Drop has accumulated approximately 11.4 million shekels in losses over the past three years. As of the end of June, the company had only about 1.82 million shekels in cash reserves, sufficient for roughly one year of operations at its current burn rate. Auditors have issued a severe "going concern" warning, highlighting significant doubts about the company's ability to continue operating and meet its obligations without secured funding.
Despite these challenges, the company is pursuing the development of an industrial cooling system called CoolDrop, funded by the European Union, with a commercial pilot planned for 2027. However, a binding agreement has not yet been signed, and this avenue is not currently generating revenue.
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