Nexus Telocation Systems Ltd. and its Subsidiary Announce Signing Agreements for Raising of Approximately $15 Million for the Pu
November 18 2004 - 9:00AM
PR Newswire (US)
Nexus Telocation Systems Ltd. and its Subsidiary Announce Signing
Agreements for Raising of Approximately $15 Million for the
Purchase of Shagrir's Activities and Assets GIVATAYIM, Israel,
November 18 /PRNewswire-FirstCall/ -- Nexus Telocation Systems Ltd.
(OTC:NXUS.OB) (BULLETIN BOARD: NXUS.OB) , a leading provider of
Stolen Vehicle Retrieval services, announced today, that it signed
agreements for raising of funds in the amount of approximately $15
million in Nexus and its subsidiary Pointer (Eden Telecom Group)
Ltd. The funds raised in this round of financing are to serve
mainly for the purchase of Shagrir's activities and assets by
Pointer. Shagrir is one of the leading companies in Israel in the
field of automobile repair services and towing service. Shagrir has
approximately 730,000 subscribers throughout Israel and its fleet
of vehicles include approximately 130 service cars, mobile garages
and towing vehicles. As part of this round of financing Egged
Holdings Ltd. entered into a Share Purchase Agreement with Nexus
pursuant to which Egged is to invest in the share capital of Nexus
$2.4 million at a price per share of $0.084, in consideration for
the issuance of 14.36% of the issued share capital of Nexus. In
addition, DBSI Investments Ltd., the controlling shareholder of
Nexus, is to invest $1 million in the share capital of Nexus and
additional investors may invest up to an additional $2 million,
under the same terms and conditions. Under the Share Purchase
Agreement the investors are to be issued warrants to purchase
additional shares of Nexus up to an amount equal to 22% of their
investment in the share capital of Nexus, at the same price per
share. DBSI Investments Ltd. and Egged entered into a shareholders
agreement regarding their holdings in Nexus. In addition, Egged
also entered into convertible loan agreements with Pointer and
Nexus pursuant to which Egged is to loan to Pointer an amount of
approximately $4 million. The loans may be converted into shares of
Nexus and/or to shares of Pointer. Moreover, and further to the
previous announcement of Nexus of September 5, 2004, a group of
investors lead by Gandyr Investments 2004 Ltd., entered into an
agreement with Pointer and Nexus pursuant to which they are to loan
Pointer approximately $7.5 million and have an option to purchase
shares of Nexus and/or Pointer. Egged Holdings Ltd., a strategic
investor, is a subsidiary of Egged Ltd., the leading public
transportation operator in Israel supplying approximately 60% of
all the public transportation services provided in Israel. Egged is
considered one of the largest public transportation companies in
the world. Gandyr Investments 2004 Ltd. is a company controlled by
Dr. Israel Yovel and Mrs. Judith Yovel Recanati. The completion of
the investment transactions are subject to obtaining all regulatory
approvals required, shareholders approval of Nexus, financing from
banks and the execution of a definitive agreement for the purchase
of the assets and activities of Shagrir. Nexus Telocation Systems
Ltd. develops, manufactures and markets low energy and cost
effective wireless communications and location based information
systems through the application of digital spread spectrum
technologies deployed in Stolen Vehicle Retrieval applications.
This press release contains forward-looking statements with respect
to the business, financial condition and results of operations of
Nexus and its affiliates. These forward-looking statements are
based on the current expectations of the management of Nexus, 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. Nexus 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:
DATASOURCE: Nexus Telocation Systems Ltd CONTACT: Contact: Ronen
Stein, V.P. and Chief Financial Officer, Tel.; +972-3-572-3111,
e-mail:
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