In a unique deal, telecommunications operator billing and customer care solutions developer Mind CTI Ltd. (Nasdaq: MNDO) has signed a contract with Canadian Internet and communications operator EastLink Inc., and also allotted the company a warrant to purchase shares in the company. Mind CTI did not disclose the size of the contract, but market sources estimate at a few million dollars.
Mind CTI allotted EastLink a warrant for 924,545 for Mind CTI shares at a strike price of $2.48 per share (the average closing price for the past 30 trading days on Nasdaq), compared with Friday's closing price of $2.55. The warrant is exercisable for 18 months. If exercised in full, EastLink will invest $2.3 million in Mind CTI and own just under 5% of the company.
Mind CTI chairwoman and CEO Monica Iancu founded the company and is its largest shareholder. She said, "We are excited to have been selected by such a dynamic operator and by the professional team that managed the process. We believe that this is the beginning of a long-term partnership and welcome EastLink to Mind CTI families, customers, and investors."
Yokne'am-based Mind CTI will provide EastLink with an integrated end-to-end prepaid and postpaid convergent billing solution for full support of its future wireless services.
Mind CTI's share price rose 2% at the opening on Nasdaq today to $2.60, giving a market cap of $48 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 24, 2011
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