ROBO ROBO Global Robotics and Automation Index

RoboGroup T.E.K. Ltd. Announces Execution of Standby Equity Distribution Agreement with Cornell Capital Partners LP For up to $5.5 Million ROSH HA'AYIN, Israel, June 23 /PRNewswire-FirstCall/ -- RoboGroup T.E.K. Ltd. (NASDAQ:ROBO), today announced that it has signed a Standby Equity Distribution Agreement ("The Agreement") that allows it, at its option, to issue shares to investment fund Cornell Capital Partners up to a maximum value of US$5.5 million. Under the terms of the Agreement, RoboGroup may, at its discretion, issue shares to Cornell at any time over the next two years. The maximum aggregate amount of the equity placements pursuant to the Agreement is US$5.5 million. Subject to this limitation, RoboGroup may draw down up to US$250,000 per week. The facility may be used in whole or in part entirely at RoboGroup's discretion. The issuance of the shares according to the Agreement is subject to an effective registration statement and the approval of RoboGroup's shareholders. The shares will be issued to Cornell at the market price as of the date of the issuance and in accordance with the terms of the Agreement. RoboGroup's CEO Rafael Aravot commented: "We are delighted to have signed this agreement with Cornell. The advantage of this agreement is that although the funds are secured and available to us, any draw down of the facility will be at our discretion. I believe that this should give shareholders and investors confidence that we have a source for the funds needed for the continuation and the expansion of our operations." "RoboGroup is an outstanding investment opportunity for us," said Mark Angelo, President and Portfolio Manager at Cornell Capital. "In our view, the different sectors, in which RoboGroup operates, show enormous potential, and we believe that RoboGoup is well positioned. We are eager to assist RoboGroup in meeting its ongoing financing needs for growth, and we look forward to a long-term relationship with the Company." About RoboGroup RoboGroup engages in three business sectors. The first sector is devoted to RoboGroup's training products and e-learning systems. RoboGroup is a world leader in engineering and manufacturing technology training systems. The Company is market driven, deriving its growth from technological leadership, strong partnerships and management expertise. The second is Yaskawa Eshed Technology (YET), a joint venture with Japan's Yaskawa Electric Corp., which provides industrial motion controls, particularly those based on its patented algorithms. The third focuses on MemCall, a fabless VLSI semiconductor developer with unique Call Out Memory(TM) technology for Internet and communications applications requiring intensive search and filter capabilities. For more information, visit http://www.robo-group.com/. About Cornell Capital Partners, LP Managed by US based Yorkville Advisers LLC, Cornell Capital Partners, LP is a key player in structuring and executing equity agreements. Facilities similar to this Standby Equity Distribution Agreement are widely utilized by companies in the USA, UK and Australia. To date, the Cornell group has made available in excess of $800 million for over 100 publicly traded corporations. For more information please visit: http://www.cornellcapital.com/ To the extent that this press release discusses expectations about market conditions or about market acceptance and future sales of the Company's products, or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause results to differ materially from the statements made. These factors include the rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate, risks associated with the acceptance of new products by individual customers and by the market place and other factors discussed in the business description and management discussion and analysis sections of the Company's Annual Report on Form F-20. Company Contact: Talia Myron RoboGroup +972-3-900-4170 Agency Contact: Ayelet Shiloni Integrated IR +1-866-447-8633 DATASOURCE: RoboGroup t.e.k. Ltd CONTACT: Company Contact: Talia Myron, RoboGroup, , +972-3-900-4170; Agency Contact: Ayelet Shiloni, Integrated IR, , +1-866-447-8633

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