Metalink Ltd. (Nasdaq: MTLK;TASE: MTLK) filed on Friday a registration statement with the US Securities and Exchange Commission (SEC) to raise $25 million. The filing comes a week after the company stated in its financial report that it was facing liquidity problems.
Metalink, founded by chairman Uzi Rozenberg and CEO Tzvika Shukhman, develops broadband telecommunications solutions. The company did not disclose how it planned to raise the money, stating, "We may offer and sell, from time to time, ordinary shares, debt securities, purchase contracts, units, warrants and capital notes, and/or selling shareholders may from time to time offer and sell our ordinary shares, in one or more offerings, for an aggregate initial offering price of $25,000,000. We will not receive any proceeds from the sale of our ordinary shares by selling shareholders."
The company stated that it plans to use the net proceeds from the offering for its strategic plan, including marketing expenses, R&D expenses, general and administrative expenses, working capital, and other general corporate purposes, including investments and acquisitions. The company added that it might invest funds not immediately required in marketable securities.
Metalink reiterated its statement in its 20-F annual financial report: "If we cannot raise sufficient funds or if adequate funds are not available on acceptable terms, we may be unable to meet our business objectives and we are likely to face liquidity problems during the year 2008 and we will have to modify our current business plan, primarily to significantly reduce operating expenses from their current level."
Metalink had $19.1 million in cash and cash equivalents at the end of March, of which $4 million was in cash. The company noted that it had $2.2 million in auction rate securities (ARS) at the end of 2007.
Published by Globes [online], Israel business news - www.globes-online.com - on July 6, 2008
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