Deal sells 5,263,158 shares at $0.095 each to fund marketing efforts
By Devika Patel
Knoxville, Tenn., Dec. 11 - Elbit Vision Systems Ltd. said it has raised $500,000 in a non-brokered private placement of stock with Avi Gross. Gross also provided a $300,000 convertible loan to the company.
The company sold 5,263,158 ordinary shares at $0.095 each. The price per share is an 18.75% premium to the Dec. 10 closing share price of $0.08.
The loan may be converted at a price per share of $0.095. It accrues interest at Libor and is due in one year.
Gross also received two warrants. The first warrant is exercisable for up to $200,000 of ordinary shares at $0.095 for six months. The second warrant is exercisable for up to $1 million of shares at $0.20 until Feb. 5, 2015. The strike price of the second warrant is a 150% premium to the Dec. 10 closing price.
Proceeds will be used for the expansion of the company's marketing efforts and activities, mainly in Asia and South America.
Elbit Vision Systems, based in Kadima, Israel, produces automatic in-line inspection and quality monitoring systems used in the heavy manufacturing industry, including systems for the automotive, aeronautics, steel and other sectors.
| Issuer: | Elbit Vision Systems Ltd.
|
| Issue: | Ordinary shares
|
| Amount: | $800,000
|
| Warrants: | For $1.2 million of stock
|
| Warrant expiration: | Six months (for $200,000 of stock), Feb. 5, 2015 (for $1 million of stock)
|
| Warrant strike prices: | $0.095 (for $200,000 of stock), $0.20 (for $1 million of stock)
|
| Agent: | Non-brokered
|
| Investor: | Avi Gross
|
| Settlement date: | Dec. 10
|
| Stock symbol: | OTCBB: EVSNF
|
| Stock price: | $0.08 at close Dec. 10
|
| Market capitalization: | $6.13 million
|
|
|
| Stock
|
| Amount: | $500,000
|
| Shares: | 5,263,158
|
| Price: | $0.095
|
|
|
| Loan
|
| Amount: | $300,000
|
| Maturity: | One year
|
| Coupon: | Libor
|
| Conversion price: | $0.095
|
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