Hatehof, which develops and produces special vehicles for military and civilian use, has signed an agreement with US investment fund YA Global Investments L.P., run by Yorkville Advisors LCC, whereby it will receive investment of up to $12 million. The investment will be carried out via a SEDA (standby equity distribution agreement), under which Hatehof will be able to draw down money on the investment whenever it decides to do so, over a three year period, with an option for a one year extension. In exchange, Hatehof will allocate new shares to YA Global Investments after publishing a shelf prospectus.
The share price in each allocation will be determined on the basis of the lowest average weighted market price of the company's share in the ten days before the investment request is made, less a 2% discount.
David Oron, chairman and controlling shareholder in Hatehof, said, "Yorkville spotted the breakthrough that Hatehof made in the past few years. From being a company under protection from creditors, it has been led by its management team to great success in landing a series of deals worth some NIS 320 million, with an offering of new products that it has developed. Experience shows that investment deals such as this one by Yorkville contribute to expanding liquidity and exposing Hatehof's share to new investors.
Hatehof also announced today that it had signed a deal with Oron under which NIS 10 million of owners' loans will be converted to equity. The share price for the purposes of the agreement is the average closing price of the share in the past two months, plus a 15% premium. The agreement will reduce the company's leverage and improve its ability to raise capital. It is subject to approval by a shareholders' meeting.
Published by Globes [online], Israel business news - www.globes.co.il - on June 22, 2009
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