New York, May 24 - B.O.S. Better On-Line Solutions Ltd. said it has agreed to sell up to $2.5 million of stock in a private placement to investors in Israel and Europe.
The Teradyon, Israel, maker of communications, connectivity and software products will sell up to 1,087,000 ordinary shares at a price of $2.30 per share.
Investors will also receive warrants for 60% of the number of shares sold, exercisable for three years.
Catalyst Fund LP will buy $800,000 of stock, as long as its holding in the company does not rise above 24.99% from its current 19.58%.
B.O.S. will use proceeds to strengthen its balance sheet and for general corporate purposes.
The company noted that the price of $2.30 is at the lower end of the range considered fair in an opinion prepared by BDO Ziv Haft.
| Issuer: | B.O.S. Better On-Line Solutions Ltd.
|
| Issue: | Ordinary shares
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| Amount: | $2.5 million
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| Shares: | 1,087,000
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| Price: | $2.30
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| Warrants: | For 652,200 shares (60% of shares issued)
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| Warrant exercise price: | $2.50 for first year, $2.75 for second year, $3.03 for third year
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| Warrant term: | Three years
|
| Lead investor: | Catalyst Fund LP
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| Pricing date: | May 24
|
| Stock price: | $2.32 at close May 23
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