Benny Landa (<span style="font-weight: normal;">left</span>) &amp; Erel Margalit.

Highcon Systems’ $187M IPO ends in $757K asset sale

Buyers to move operations abroad as the company folds under debt load.

The assets and operations of Highcon Systems, once a dream venture for Benny Landa and Erel Margalit, who sought to revolutionize the global cardboard packaging market, are being sold for NIS 2.55 million (approx. $757,000) to a group of investors that includes Roy Ben-Yami and Ami Lustig, owners of LR Group, along with an American partner.
The sale was approved earlier this week by the Central District Court in Lod, after the court-appointed trustees, Attorney Ronen Matryi and CPA Omer Serviansky, presented Judge Merav Ben-Ari with an agreement that includes a commitment to transfer Highcon’s operations, or at least most of them, outside Israel.
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מימין אראל מרגלית בני לנדא
מימין אראל מרגלית בני לנדא
Benny Landa (left) & Erel Margalit.
(Amit Shaal, Tommy Harpaz)
As part of the transaction, the company’s assets.including equipment, inventory, intellectual property, and about 60 patents related to digital packaging production technologies, will be acquired. Judge Ben-Ari ruled that the transfer of these assets would be completed on Thursday, upon payment. The purchasing group was represented by attorneys Yossi Vaknin and Moshe Avikam.
According to the agreement, the acquisition will be made via a U.S.-registered company to be established by the buyers. Operations will be moved entirely or partially overseas over the next year. However, there remains a possibility that part of the activity will remain in Israel. A final decision on this point is expected by early November, per terms agreed upon with the Israel Innovation Authority. The buyers said they intend "to preserve the company's knowledge and continue providing support and customer service using the experience and technological capabilities developed over the years."
Highcon Systems, founded in 2009, developed digital systems for producing cardboard packaging. The company, which Landa envisioned as his next big breakthrough following his success with Indigo, sought to upend the packaging industry with digital machines capable of rapidly cutting and folding cardboard sheets, making packaging production faster and cheaper.
In November 2020, Landa and his primary partner Margalit (via his JVP fund) listed the company on the Tel Aviv Stock Exchange at a valuation of NIS 630 million (approx. $187 million), during a wave of tech IPOs in late 2020 and early 2021. The LR Group was also among the early investors, currently holding a 4.44% stake.
However, following the IPO, Highcon’s stock quickly declined. The company fell into steep losses and in 2023, received a “going concern” warning in its financial reports. Today, its market cap is only about NIS 2 million.
In March 2025, Highcon filed for court protection and requested the appointment of a receiver due to a severe cash flow crisis. The company stated it was unable to repay debts and liabilities totaling over NIS 60 million. The court subsequently appointed trustees and issued a stay-of-proceedings order.