RADA Provides Update on Recent Capital Raising Activity
September 06 2017 - 9:00AM
RADA Electronic Industries Ltd. (Nasdaq:RADA) announced that
following recent capital raising activity with institutional
investors, the conversion of loans to equity and exercise of
warrants by its primary shareholder, it has increased its net cash
position by $13.3 million while reducing its ongoing annual
interest payments by approximately $250,000.
On August 21, RADA completed a $10 million
capital raise under an existing shelf prospectus, issuing 4,604,500
shares. The investors included leading Israeli institutional
investors, including Yelin-Lapidot Investment House, More
Investment House, Noked Capital, and The Phoenix Insurance
Company.
From August 17 until September 5, DBSI, the
Company’s primary shareholder exercised warrants and converted a
loan to equity. It sold a portion of the shares gained to
institutional investors including Optimus Fund and others. On a net
basis over the period, DBSI increased its shareholding in RADA by
1,168,782 shares to approximately 12.2 million shares, representing
35% of the Company’s equity (on a fully diluted basis).
Yossi Ben Shalom, RADA’s
Chairman, commented: "Our recent activity has
significantly strengthened RADA’s capital base and our efforts have
brought in a number of important and long-term focused
institutional investors to the company, joining DBSI. At the same
time, DBSI has also increased its shareholdings of the Company.
These investments from leading players in the local capital market,
demonstrate a shared belief in RADA’s strategy going forward,
management’s ability to realize that strategy and the potential for
significant shareholder value creation in the future.”
About RADA
RADA Electronic Industries Ltd. is an
Israel-based defense electronics contractor. The Company
specializes in the development, production, and sales of Tactical
Land Radars for Force and Border Protection, Inertial Navigation
Systems for air and land applications, and Avionics Systems and
Upgrades.
Certain statements in this press release are
"forward-looking statements" within the meaning of the Private
Securities Litigation Act of 1995. Such statements involve known
and unknown risks, uncertainties and other factors that may cause
actual results to differ materially. Such risk uncertainties and
other factors include, but are not limited to, changes in general
economic conditions, risks in product and technology developments,
market acceptance of new products and continuing product demand,
level of competition and other factors described in the Company's
Annual Report on Form 20-F and other filings with the Securities
and Exchange Commission.
Company Contact:
Gil Schwartz (VP, BD & Marketing)
Tel: +972-9-892-1111
mrkt@rada.com
www.rada.com
Investor Relations Contact:
Ehud Helft/Gavriel Frohwein
GK Investor & Public Relations
Tel: +1 646 688 3559
rada@gkir.com
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