Medipress Follow-up: Why the Cash Cushion Still Does Not Equal Cash for Unit Holders
Medipress ended 2025 with NIS 11.97 million of cash against a market value of only about NIS 8.3 million, but that cash still does not sit on a straight line to unit holders. Run Off is only an in-principle decision, management fees are charged on total assets including cash, and the partnership agreement leaves timing, costs, and capital allocation in the general partner's hands.
The Cash Cushion Is Real, but It Is Not a Distribution Pool Yet
The main article argued that the market is not giving full credit to Medipress's cash cushion, not just to its medtech optionality. This follow-up isolates why. As of December 31, 2025, Medipress had NIS 11.967 million of cash and cash equivalents, while on April 3, 2026 its market value stood at only about NIS 8.3 million. On the surface, that should read like a simple cash-at-a-discount setup. In practice, that is only a partial read, because the cash still sits inside a structure that has not yet become a holder distribution mechanism.
This is not an accounting debate. The cash balance is real. What is missing is a clear path between the cash and the unit holder. As of March 17, 2026 there was an in-principle decision to pursue a Run Off plan, but no dividend decision, no binding timetable, and management still had to formulate the plan. There is direction, but there is still no execution mechanism.
That matters especially here because Medipress is no longer being read like a regular biotech company. It is being read like a tiny public wrapper where even moderate operating friction becomes material. When market value is only about NIS 8.3 million, every layer of cost, control, and delay carries more weight.
Where the Cash Actually Gets Stuck
An in-principle Run Off is not a payout framework
Even after the in-principle Run Off decision, no dividend decision had been taken as of March 17, 2026. That is a basic but critical point: even if the direction has shifted from making new investments to realizing assets, the cash still has not been formally assigned back to unit holders.
The contradiction becomes sharper in the way liquidity is framed. Out of the NIS 11.967 million cash balance, NIS 11.709 million sits in a short-term deposit and NIS 258 thousand sits in current accounts, yet those balances are still described as intended to support investments in existing and additional target companies and to fund ongoing activity over the next 12 months. In other words, even after the Run Off decision, the cash is still framed as operating and investment capital, not as a distribution pool.
That is the core gap. As long as the cash is not moved from an operating-and-funding frame into a realization-and-return frame, the unit holder does not own direct cash. The unit holder owns an economic claim inside an entity that is still running.
Control remains with the general partner, not with the unit holder
The partnership agreement leaves full control over the partnership's management and business in the hands of the general partner. The limited partner does not participate in management and does not act legally on behalf of the partnership. So even if a unit holder reads the same cash number the market reads, that holder does not own the lever that can force the pace of realization, distribution, or the halt of follow-on investments.
That is exactly why an in-principle Run Off is not the same thing as an actual liquidation path. The August 2024 decision says where the partnership wants to go. The partnership agreement says who controls the route, the pace, and the ongoing use of the cash until it gets there. As long as those two things are not tied together into one binding framework, the discount on the cash balance remains understandable.
Waiting itself has a cost
In 2025 Medipress recorded NIS 1.383 million of G&A and NIS 512 thousand of operating cash use. That is not an existential burn rate, but it is also not a cash box sitting still. On an end-2025 basis, G&A was equal to about 11.6% of year-end cash. Against the April 3, 2026 market value, it was already equal to about 16.7%.
These numbers matter less because of the exact year and more because of what they say about the wrapper. Waiting is not neutral. Even without financial debt, and even without new investments, time itself erodes value.
Why the Cash Cushion Does Not Stay Whole
The first friction layer is management fees. The partnership agreement sets semiannual management fees at 0.4% of total assets, including cash and fair-value investments, throughout the partnership's life. The general partner waived management fees in 2022 through 2024, but in 2025 Medipress actually recorded NIS 158 thousand of management fees to the general partner. That is not a large number in absolute terms, but it changes the reading: the cash balance is no longer benefiting from a full controlling-owner waiver, and the contractual structure is again charging the cash box itself. Against the April 3, 2026 market value, those fees are equal to about 1.9% of market cap.
The second friction layer is that the partnership bears a broad cost envelope, not just formal management fees. The agreement places all partnership-related expenses on the entity, including employee costs, accounting and audit, tax advice, legal advice, IT, rent, insurance, public relations, investor relations, and even expenses tied to R&D projects. Anyone looking only at the cash line therefore misses the fact that the entity itself continues to generate overhead even under a realization path.
The third friction layer relates not to the existing cash balance, but to the value that may join it later. In any realization event the partnership may pay the general partner or its controlling owners a 20% promote on net proceeds, subject to threshold conditions and supervisor approval. That means even if P-Cure or another asset produces a realization event, not every shekel that comes in will flow one-for-one to unit holders. Part of the future upside can be taken out at the wrapper level first.
| Friction Layer | What is already set | Why it matters for unit holders |
|---|---|---|
| Run Off decision | An in-principle August 2024 decision, with the detailed plan still to be formulated by management | There is direction, but still no binding payout framework |
| Dividend | No dividend decision had been taken by March 17, 2026 | The cash has not been formally allocated back to unit holders |
| Control | Full control remains with the general partner; the limited partner has no management role | Unit holders have no direct lever to accelerate realization or payout |
| Management fees | 0.4% per half-year on total assets, including cash; NIS 158 thousand recorded in 2025 | Sitting on the cash balance still costs money |
| Promote | 20% of net proceeds in realization events, subject to threshold conditions | Even a successful exit does not pass entirely through to unit holders |
What the Market Is Probably Reading Correctly
It is easy to see only the positive side: NIS 11.967 million of cash against a market value of roughly NIS 8.3 million. But the market is probably also reading the layer above that number. It sees a cash balance sitting inside a structure where management can still allocate time, expenses, and decisions. It sees a Run Off that has not yet been translated into a payout. And it sees an agreement that allows both management fees during the waiting period and a promote if a realization event eventually happens.
So the discount here is not only about confidence in P-Cure or in the rest of the portfolio. It is also a price for inaccessibility. Cash sitting in the partnership's deposit account is not the same thing as cash that has already made its way to the unit holder. Until that path is defined, the market can continue to demand a discount.
What Has to Change for Cash to Count as Cash
First: management needs to turn Run Off from an in-principle decision into a plan that sets out sequencing, timetable, and what the cash can still be used for until realization is complete.
Second: the cash balance needs to stop being framed as fuel for additional target-company investments and start being framed as a source for capital return, dividends, or an orderly wind-down.
Third: the market will need clarity on the friction layer itself. Not just how much cash exists, but how much of it erodes each year, how management fees will look under a realization path, and what would actually remain for unit holders after promote economics if a realization event occurs.
Bottom Line
Medipress's cash cushion is real. But as of the end of 2025 and March 17, 2026, it is still not equivalent to holder-accessible cash. Between the cash balance and the unit holder sit an unfinished Run Off framework, full control by the general partner, management fees on total assets, an ongoing expense layer, and promote economics on future realizations. The right question is therefore no longer whether the cash exists, but under what conditions it stops being partnership cash and becomes unit-holder cash.
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