PETACH-TIKVA, Israel,
December 11, 2018 /PRNewswire/ --
Eltek Ltd., (NASDAQ: ELTK), a global manufacturer and supplier
of technologically advanced solutions in the field of printed
circuit boards, announced today that on December 7, 2018, it received a notice from the
Listing Qualifications Department of Nasdaq advising that it has
been granted an extension of time to regain compliance with the
shareholders' equity requirement of NASDAQ Listing Rule 5550(b)(1)
(the "Rule").
As previously reported, on October 2,
2018, the Company received a NASDAQ Staff (the "Staff")
Determination Letter indicating that it has failed to comply with
the Rule, which requires the Company to maintain either a minimum
of $2,500,000 in shareholders' equity
or $35,000,000 market value of listed
securities or $500,000 of net income
from continuing operations for the most recently completed fiscal
year or two of the three most recently completed fiscal years. The
Company was given until November 16,
2018, to submit a plan to regain compliance.
The Company developed and submitted a plan to regain compliance
with the shareholder's equity requirement. The plan is based on a
proposed rights offering to shareholders of the Company. The
Company has been informed by its controlling shareholder, Nistec
Ltd. that it intends to exercise the rights to be offered to it in
the rights offering, by converting approximately $2.5 million of debt owed to it by the Company,
into ordinary shares of the Company. As is customary in rights
offerings, it is expected that the rights offering will be made at
a discount to market.
Under the terms of the extension, the Company must provide and
update to the Staff on or before February
15, 2019 with respect to the proposed offering and the
timeline to complete the offering. The Company must provide
evidence of compliance with the Rule prior to March 31, 2019. In the event the Company does not
satisfy the terms set forth in the December
7 letter by March 31, 2019,
Nasdaq will provide written notification to the Company that its
securities will be delisted. At such time, the Company may appeal
such determination. In the event Eltek fails to evidence compliance
upon filing its periodic report for the quarter ending March 31, 2019, the Company may be subject to
delisting.
The Ordinary Shares to be issued by Eltek in the proposed rights
offering have not been registered under the Securities Act of 1933,
as amended, and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements. The Company
intends to file a registration statement with the Securities and
Exchange Commission for purposes of registering the Ordinary Shares
issuable in connection with the proposed rights offering.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these ordinary shares 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 any such state or
jurisdiction.
About Eltek
Eltek - "Innovation Across the Board", is a global manufacturer
and supplier of technologically advanced solutions in the field of
printed circuit boards (PCBs), and is the Israeli leader in this
industry. PCBs are the core circuitry of most electronic devices.
Eltek specializes in the manufacture and supply of complex and high
quality PCBs, HDI, multilayered and flex-rigid boards for the
high-end market. Eltek is ITAR compliant and has AS-9100 and NADCAP
Electronics certifications. Its customers include leading companies
in the defense, aerospace and medical industries in Israel, the United
States, Europe and
Asia.
Eltek was founded in 1970. The Company's headquarters, R&D,
production and marketing center are located in Israel. Eltek also operates through its
subsidiaries in North America and
in Europe and by agents and
distributors in Europe,
India, South Africa and South America.
Forward Looking Statement:
Certain matters discussed in this news release are
forward-looking statements that involve a number of risks and
uncertainties including, but not limited to statements regarding
expected results in future quarters, risks in product and
technology development and rapid technological change, product
demand, the impact of competitive products and pricing, market
acceptance, the sales cycle, changing economic conditions and other
risk factors detailed in the Company's Annual Report on Form 20-F
and other filings with the United States Securities and Exchange
Commission.
For more information, visit Eltek's web site at
http://www.nisteceltek.com.
Investor Contact:
Amnon Shemer
Vice President, Finance and Chief Financial Officer
amnons@nisteceltek.com
+972-3-9395023
SOURCE Eltek Ltd.