Investor DBSI offers $3.18 million convertible loan to repay debt
By Marisa Wong
Morgantown, W.Va., May 18 – RADA Electronic Industries Ltd. said it closed a $4 million equity financing transaction with DBSI Investments Ltd.
DBSI purchased 17,021,276 ordinary shares of RADA and received two-year warrants to purchase 8,510,638 additional ordinary shares at an exercise price of $0.235 and four-year warrants to purchase an additional 7,272,727 ordinary shares at an exercise price of $0.275.
The strike prices are 38.16% and 27.63% discounts to the May 17 closing share price of $0.38.
DBSI also granted RADA an option to obtain a $3,175,000 convertible loan, proceeds of which would be used to repay outstanding debt due on Aug. 31, 2016.
“The closing of the transaction with DBSI, our new controlling shareholder, gives our company sufficient working capital to support our current growth plans, R&D and marketing activities, which were constrained because of our financial situation during the last few years,” Zvika Alon, RADA’s chief executive officer, commented in a press release.
RADA is a Netanya, Israel-based defense electronics contractor.
| Issuer: | RADA Electronic Industries Ltd.
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| Issue: | Ordinary shares
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| Amount: | $4 million
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| Shares: | 17,021,276
|
| Warrants: | For 15,783,365 additional shares
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| Warrant expiration: | Two years (for 8,510,638 shares), four years (for 7,272,727 shares)
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| Warrant strike price: | $0.235 for two-year warrants, $0.275 for four-year warrants
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| Investor: | DBSI Investments Ltd.
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| Announcement date: | May 18
|
| Stock symbol: | Nasdaq: RADA
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| Stock price: | $0.38 at close May 17
|
| Market capitalization: | $6.2 million
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