Yorkville Advisors LLC has signed another investment deal with an Israeli company, after granting Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) a $25 million equity line last month. Today, wood and laminates products manufacturer Averbuch Ltd. (TASE: AVER) announced that it has signed an memorandum of understanding (MOU) for a three-year $25 million standby equity distribution agreement (SEDA) with Jersey City-based Yorkville unit YA Global Investments LP.
Yorkville will acquire holdings in either Averbuch or in its wholly owned subsidiary, M. Averbuch Holdings Ltd. The investments will be made on the basis of periodic requests by Averbuch at its discretion. Averbuch is not obliged to exploit the entire credit line or any part thereof.
No single investment will exceed $125,000, and the minimum time between investment requests is five trading days. Averbuch also limits Yorkville's stake in the company to 4.99%.
Averbuch was founded as a family firm in Tel Aviv in 1953. The share rose 6.9% by mid-afternoon today to NIS 50, giving a market cap of NIS 394 million.
Published by Globes [online], Israel business news - www.globes-online.com - on September 6, 2009
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