HOD HASHARON, Israel, Feb. 15,
2022 /PRNewswire/ -- Allot Ltd. (NASDAQ: ALLT)
(TASE: ALLT) (the "Company"), a leading global provider of
innovative security solutions and network intelligence for
enterprise and mobile, fixed, and cloud service providers,
announced today that it had entered into a $40 million private financing with Lynrock Lake
Master Fund LP, a fund managed by Lynrock Lake LP ("Lynrock Lake"),
an investment management firm with approximately $1.3 billion of assets under management. The
financing consists of $40 million
principal amount of a convertible promissory note (the "Note"). The
financing is expected to close on February
17, 2022.
Erez Antebi, President & CEO
of Allot, commented "We appreciate the trust our long-term
shareholder is demonstrating in our company and our strategy.
This financing provides us additional flexibility in executing our
security-as-a-service (SECaaS) strategy and enables us to pursue
growth while maintaining a strong balance sheet."
"As a long-standing investor in Allot, we have been impressed by
the scalability of the Company's technology and the robustness of
its security offering for communication service providers and
enterprises," said Cynthia Paul,
Chief Investment Officer of Lynrock Lake. "We are excited to
increase our investment in Allot as the Company executes its
strategic plan to grow its SECaaS recurring revenue stream."
Under the terms of the Note, the Note will not bear interest and
the principal amount of the Note will not accrete. The Note will
mature on February 14, 2025; however,
the Company, at its sole discretion, may elect to extend the date
of maturity by an additional year until February 14, 2026 and may further elect to extend
the date of maturity by another additional year until February 14, 2027, each time by providing the
holder with 90 days' notice. The Note is convertible, in whole or
in part at the option of the holder at any time prior to the
Company's repayment of the principal amount of the Note in full,
into the Company's ordinary shares at an initial conversion price
of $10.30 per share, subject to
certain customary anti-dilution adjustments. The conversion price
will decrease by $1 per share (as
adjusted commensurate with any anti-dilution adjustments to the
Conversion Rate prior to such time) for each year the maturity is
extended. The Company intends to use the proceeds of the financing
for general corporate purposes.
Lynrock Lake has not requested a board seat, and its conversion
of the Note is subject to an initial ownership limitation of 19.99%
of the Company's ordinary shares outstanding immediately after any
such conversion, which may be decreased upon notice or increased to
24.99% upon 61 days' notice from Lynrock Lake.
Forward Looking Statements
This release contains forward-looking statements, which express
the current beliefs and expectations of Company management,
including those regarding the expected timing of the closing of the
transaction and use of proceeds. Such statements involve a number
of known and unknown risks and uncertainties that could cause our
future results, performance or achievements to differ significantly
from management's current beliefs and expectations. Forward-looking
statements in this release are made pursuant to the safe harbor
provisions contained in the Private Securities Litigation Reform
Act of 1995. We undertake no obligation to update the information
made in this release in the event facts or circumstances
subsequently change after the date of this press release.
About Allot
Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a leading provider
of innovative network intelligence and security solutions for
service providers and enterprises worldwide, enhancing value to
their customers. Our solutions are deployed globally for network
and application analytics, traffic control and shaping,
network-based security services, and more. Allot's multi-service
platforms are deployed by over 500 mobile, fixed and cloud service
providers and over 1,000 enterprises. Our industry-leading
network-based security-as-a-service solution has achieved over 50%
penetration with some service providers and is already used by over
20 million subscribers globally.
Seth Greenberg
Allot Director of Corporate Communications
+972-54-922-2294
sgreenberg@allot.com
Ehud Helft / Kenny Green
Allot Investor Relations
+1-646-688-3559
Allot@gkir.com
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SOURCE Allot Ltd.