Offering also includes three-year warrants; Zisapel invests $1 million
By Devika Patel
Knoxville, Tenn., Oct. 12 - Radcom Ltd. said it plans to conduct a private placement of stock.
The company will raise $5.5 million by selling ordinary shares at $8.55 per share, which is based on the average closing price of Radcom's ordinary shares on the 30 trading days prior to pricing, minus a discount of 12%. The price per share also represents a 14.41% discount to the Oct. 11 closing share price of $9.99.
The investors will also receive a three-year warrant for one share for every three shares purchased. The exercise price will be equal to the price per share to be paid in the transaction plus 25%, or about $10.69, which is also a 7.01% premium to the Oct. 11 share price.
Zohar Zisapel will invest about $1 million.
"We are grateful to receive this additional vote of confidence from new investors and current investors, many of whom have demonstrated such unwavering support of our company throughout the years," chief financial officer Jonathan Burgin said in a press release.
"We believe that the improving financial results that we have delivered over the past few quarters are justifying their support and confirming the market's growing need and demand for our solutions. The cash infusion from this transaction will help us fully leverage this momentum, taking advantage of favorable markets to create additional value for our shareholders."
Tel Aviv, Israel-based Radcom develops, manufactures, markets and supports innovative network test and service monitoring products for communications service providers and equipment vendors.
| Issuer: | Radcom Ltd.
|
| Issue: | Ordinary stock
|
| Amount: | $5.5 million
|
| Price: | $8.55
|
| Warrants: | 1 for 3
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $10.69 (approximate)
|
| Investor: | Zohar Zisapel (for approximately $1 million)
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| Pricing date: | Oct. 12
|
| Stock symbol: | Nasdaq: RDCM
|
| Stock price: | $9.99 at close Oct. 11
|
| Market capitalization: | $51.63 million
|
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