By Devika Patel
Knoxville, Tenn., April 28 - Medis Technologies Ltd. secured a $60 million line of credit agreement with Azimuth Opportunity Ltd., according to an 8-K filed Monday with the Securities and Exchange Commission.
Under the agreement terms, Azimuth is committed to purchase up to $60 million in common shares at a discount ranging from 4.15% to 5.5% to the volume weighted average price of the closing stock prices for the 10 trading days before a draw.
Until Nov. 1, 2009, the maturity date, the company may make drawdowns on the line in exchange for shares.
Azimuth will not be required to purchase more than $11.75 million of stock in any single drawdown excluding shares under any call option. The company may make a total of 24 drawdowns.
Reedland Capital Partners was the agent.
Medis Technologies is a New York-based maker of fuel cell batteries used in consumer and military electronics.
| Issuer: | Medis Technologies Ltd.
|
| Issue: | Equity line of credit
|
| Amount: | $60 million
|
| Tenor: | Nov. 1, 2009
|
| Price: | Equal to a 4.15% to 5.5% discount to the 10-day VWAP
|
| Warrants: | No
|
| Agent: | Reedland Capital Partners
|
| Investor: | Azimuth Opportunity Ltd.
|
| Pricing date: | April 28
|
| Stock symbol: | Nasdaq: MDTL
|
| Stock price: | $8.71 at close April 25
|
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