YEHUD, Israel, September 21, 2010 /PRNewswire-FirstCall/ --
Magal S3 (NASDAQ GM: MAGS) today announced that Company's major
shareholder, Mr. Nathan Kirsh has
provided Magal with a $10 million
bridge loan, forming the first stage of Magal's strategic capital
raising plan. This plan has been formulated by management together
with the Board of Directors and is designed to provide the Company
with the stability and the capital for the long-term growth of its
business. As approved by the General Meeting of the shareholders,
the capital raising plan is expected to culminate in a rights
offering to all shareholders in the coming months.
If not repaid within the next six months, the bridge loan will
accrue interest at the rate of LIBOR + 4% per annum, calculated
from the funding date. The term of the loan ends on January 10, 2012, after which Magal retains an
option to extend the loan for a further 60 days. The interest will
be paid together with, and in the same manner as the principal, at
term.
Mr. Livneh, President & CEO of Magal commented, "Today,
Magal has taken an important first step on a new direction for
future growth. The loan from a strong supporter and major
shareholder of Magal, provides us with more than enough cash for
our working capital needs and enables us to move forward into the
next phase of our strategic plan - a plan in which we believe will
prime the business for long-term growth and profitability."
About Magal S3
Magal S3 is a leading international provider of security, safety
and site management solutions and products (NASDAQ: MAGS).
Over the past 40 years, Magal S3 has delivered tailor-made
solutions to hundreds of satisfied customers in over 80
countries.
Magal S3 offers a broad portfolio of unique products used to
protect sensitive installations in some of the world's most
demanding locations and harshest climates. This portfolio covers
the following three categories:
- Perimeter Intrusion Detection Systems (PIDS) - a variety of smart
barriers and fences, fence mounted detectors, virtual gates, buried and
concealed detection systems
- Close Circuit TV (CCTV) - a comprehensive management platform with a
leading Intelligent Video Analysis (IVA) and Video Motion Detection
(VMD) engine
- Physical Security Information Management (PSIM) - a proprietary site
management system that enhances command, control and decision making
during both routine operations and crisis situations
For more information:
Magal S3 Hagai Katz, SVP Marketing & BD
Assistant: Ms. Elisheva Almog
E-mail: ElishevaA@magal-s3.com
Tel: +972(3)539-1444
Web: http://www.magal-s3.com
CCG Investor Relations
Ehud Helft/Kenny Green
E-mail: magal@ccgisrael.com
Tel: (US) +1(646)201-9246
Int'l dial: +972-3-607-4717
SOURCE Magal Security Systems Ltd