Pointer Telocation Announces Raising $4,675,000 From Israeli Investors in a Private Placement
December 28 2006 - 11:41AM
PR Newswire (US)
GIVATAYIM, Israel, December 28 /PRNewswire-FirstCall/ -- Pointer
Telocation Ltd. (Nasdaq Capital Market: PNTR), a leading provider
of services to insurance companies and car owners, including
road-side assistance, towing and stolen vehicle retrieval services
in Israel, Argentina and Mexico, today announced it is raising
$4,675,000 from Israeli institutional investors by means of a
private issuance of 425,000 ordinary shares at a price per share of
$11. The investors in the private placement will also be issued
warrants to purchase 212,500 ordinary shares of the company, such
that for each one share purchased the investors shall be entitled
to a warrant to purchase half a share. The warrants will be
exercisable into ordinary shares of the company, at an exercise
price per share of $13 and will be exercisable for a period of four
years. The issuance of the shares and the warrants is subject to
regulatory approvals. Yossi Ben Shalom, Chairman of the Board of
Directors, commented "The capital raised through the private
placement will allow Pointer to implement its growth strategy
through acquisitions and broadening the company's lines of services
as was published last week." About Pointer Telocation: Pointer
Telocation Ltd http://www.pointer.com/ provides range of services
to insurance companies and automobile owners, including road-side
assistance, vehicle towing, stolen vehicle retrieval, fleet
management and other value added services. Pointer Telocation
provides services, for the most part, in Israel, through its
subsidiary Shagrir and in Argentina and Mexico through its local
subsidiaries. Independent operators provide similar services in
Russia and Venezuela utilizing Pointer's technology and operational
know-how. Safe Harbor Statement This press release contains
forward-looking statements with respect to the business, financial
condition and results of operations of Pointer and its affiliates.
These forward-looking statements are based on the current
expectations of the management of Pointer, only, and are subject to
risk and uncertainties relating to changes in technology and market
requirements, the company's concentration on one industry in
limited territories, decline in demand for the company's products
and those of its affiliates, inability to timely develop and
introduce new technologies, products and applications, and loss of
market share and pressure on pricing resulting from competition,
which could cause the actual results or performance of the company
to differ materially from those contemplated in such
forward-looking statements. Pointer undertakes no obligation to
publicly release any revisions to these forward-looking statements
to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events. For a more detailed
description of the risks and uncertainties affecting the company,
reference is made to the company's reports filed from time to time
with the Securities and Exchange Commission. Contact: Ronen Stein,
V.P. and Chief Financial Officer Tel.: +972-3-572-3111 E-mail: Yael
Nevat, Commitment-IR.com Tel: +972-3-611-4466 E-mail: DATASOURCE:
Pointer Telocation Ltd CONTACT: Contact: Ronen Stein, V.P. and
Chief Financial Officer , Tel.:+972-3-572-3111, E-mail: . Yael
Nevat, Commitment-IR.com, Tel: +972-3-611-4466, E-mail:
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