Gilat Announces Results of Rights Offering
March 24 2016 - 7:05AM
Gilat Satellite Networks Ltd. (NASDAQ:GILT) (TASE:GILT), a
worldwide leader in satellite networking technology, solutions and
services, announced today that shareholders holding approximately
90% of the Company’s outstanding shares exercised their basic
subscription rights to purchase ordinary shares in the rights
offering. Shareholders also submitted over-subscription requests
for an additional 6.3 million ordinary shares, a limited portion of
which will be accepted to cover the small number of ordinary shares
that remained unsubscribed as a result of unexercised basic
subscription rights.
As a result, the Company will receive gross
proceeds of approximately $35.3 million from the sale of
approximately 9.9 million shares at a price of $3.58 per
share. The issuance and settlement of the new shares is
scheduled to be completed by April 3, 2016.
"I would like to thank Gilat's shareholders for their confidence
and support. The oversubscription of this rights offering is a
strong indicator of our shareholders' faith in Gilat's strategic
direction and future growth potential," says Dov Baharav, Gilat's
Chairman of the Board and Interim CEO. "We look forward to
capitalizing on the many opportunities laying ahead of us and on
further increasing our operational capabilities."
Gilat has filed a shelf Registration Statement
on Form F-3, which has been declared effective by the SEC, and the
rights offering is being effected by means of a prospectus
supplement forming part of such registration
statement. The rights offering in Israel is being
effected by means of a prospectus meeting the requirements of the
Israel Securities Law, 5728-1968.
This release does not constitute an offer to
sell or the solicitation of an offer to buy nor will there be any
sale of any securities referred to in this press release in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of such state or jurisdiction.
About GilatGilat Satellite Networks Ltd
(NASDAQ:GILT) (TASE:GILT) is a leading provider of products and
services for satellite-based broadband communications. Gilat
develops and markets a wide range of high-performance satellite
ground segment equipment and VSATs, with an increasing focus on the
consumer and Ka-band market. In addition, Gilat enables
mobile SOTM (Satellite-on-the-Move) solutions providing
low-profile antennas, next generation solid-state power amplifiers
and modems. Gilat also provides managed network and satellite-based
services for rural telephony and Internet access via its
subsidiaries in Peru and Colombia.
With over 25 years of experience, and over a
million products shipped to more than 90 countries, Gilat has
provided enterprises, service providers and operators with
efficient and reliable satellite-based connectivity solutions,
including cellular backhaul, banking, retail, e-government and
rural communication networks. Gilat also enables leading defense,
public security and news organizations to implement advanced,
on-the-move tactical communications on board their land, air and
sea fleets using Gilat's high-performance SOTM solutions. Gilat’s
controlling shareholders are the FIMI Private Equity Funds. For
more information, please visit us at www.gilat.com.
Certain statements made herein that are not
historical are forward-looking within the meaning of the Private
Securities Litigation Reform Act of 1995. The words "estimate",
"project", "intend", "expect", "believe" and similar expressions
are intended to identify forward-looking statements. These
forward-looking statements involve known and unknown risks and
uncertainties. Many factors could cause the actual results,
performance or achievements of Gilat to be materially different
from any future results, performance or achievements that may be
expressed or implied by such forward-looking statements, including,
among others, changes in general economic and business conditions,
inability to maintain market acceptance to Gilat's products,
inability to timely develop and introduce new technologies,
products and applications, rapid changes in the market for Gilat's
products, loss of market share and pressure on prices resulting
from competition, introduction of competing products by other
companies, inability to manage growth and expansion, loss of key
OEM partners, inability to attract and retain qualified personnel,
inability to protect the Company's proprietary technology and risks
associated with Gilat's international operations and its location
in Israel. We undertake no obligation to update or revise any
forward-looking statements for any reason. For additional
information regarding these and other risks and uncertainties
associated with Gilat's business, reference is made to Gilat's
reports filed from time to time with the Securities and Exchange
Commission, including its Annual Report on Form 20-F, Current
Reports on Form 6-K, the Registration Statement on Form F-3 and
prospectus supplement relating to the rights offering.
Contact:
Gilat Satellite Networks
Joelle Inowlocki
JoelleI@gilat.com
Gilat Satellite Networks (NASDAQ:GILT)
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