Announcement of proposed private placement of Ordinary Shares to several leading Israeli institutional investors and Formula ...
May 29 2018 - 7:31AM
Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC), announced
today that its board of directors has approved a proposed private
placement of 3,150,559 Ordinary Shares of the Company to several
leading Israeli institutional investors and 1,117,734 Ordinary
Shares of the Company to its principal shareholder, Formula Systems
(1985) Ltd., under the same terms.
The Company’s gross proceeds from the offering are
expected to be $35.0 million based on a price of $8.20 per share.
The Company intends to use the net proceeds of the offering to
support its continued organic growth momentum and funding of
potential acquisitions.
The closing is expected to take place after receipt
of the requisite regulatory approvals, which are expected to be
obtained during June 2018. Formula Systems will, following
completion of this offering, own approximately 45.3% of our
Ordinary Shares.
Barak Capital Underwriting Ltd. acted as the
exclusive placement agent for the offering.
Guy Bernstein, Chief Executive Officer of Magic
Software Enterprises, said: “We are pleased to announce the
successful private placement of our shares, reflecting our
investors’ boosted confidence in Magic Software, fueled by the
Company’s continued double-digit growth momentum over the past
years. This substantial influx of funds coupled with Magic
Software’s existing strong financial position will enable the
Company to further enhance its leading-edge solutions for
enterprises’ digital transformations, and to ramp up its merger and
acquisitions efforts.”
This press release shall not constitute an offer to
sell or the solicitation of an offer to buy securities.
About Magic Software Enterprises
Magic Software Enterprises Ltd. is a global
provider of mobile and cloud-enabled application and business
integration platforms. For more information, visit
www.magicsoftware.com.
Forward Looking Statements
Some of the statements in this press release may
constitute “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the
Securities and Exchange Act of 1934 and the United States Private
Securities Litigation Reform Act of 1995. Words such as “will,”
“expects,” “believes” and similar expressions are used to identify
these forward-looking statements (although not all forward-looking
statements include such words). These forward-looking statements,
which may include, without limitation, projections regarding our
future performance and financial condition, are made on the basis
of management’s current views and assumptions with respect to
future events. Any forward-looking statement is not a guarantee of
future performance and actual results could differ materially from
those contained in the forward-looking statement. These statements
speak only as of the date they were made, and we undertake no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
We operate in a changing environment. New risks emerge from time to
time and it is not possible for us to predict all risks that may
affect us. For more information regarding these risks and
uncertainties as well as certain additional risks that we face, you
should refer to the Risk Factors detailed in our Annual Report on
Form 20-F for the year ended December 31, 2017 and subsequent
reports and filings made from time to time with the Securities and
Exchange Commission.
For further information
contact:
Amit Birk | VP M&A and General Counsel
Magic Software Enterprisesir@magicsoftware.com
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