Is Sequoia Interfering with Portfolio Company Firesale?

Posted on: February 10, 2010 by Dan PrimackNo Comments »

Intriguing legal kerfuffle in Israel, involving Sequoia Capital and portfolio company SDT, a five year-old maker of what one report described as a “backpack-carried digital nose that sniffs out improvised explosive devices.”

SDT was founded five years ago via a merger between M.S. Tech and Israel Military Industries, and has since raised around $6.5 million from Sequoia’s Israel affiliate and individual angels. But it has since fallen on hard times (financial crisis and all), and virtually ceased operations last summer.

SDP’s court-appointed receiver wants approval to sell SDT’s assets for a bit under $1 million to U.S.-based Rapiscan (subsidiary of OSI Systems), but claims that Sequoia and two other shareholders are interfering

Tags: ,