Chip company Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) has allocated about 7 million shares to private equity firm Yorkville. In the transaction, Yorkville invested about $9 million in Tower.
The move is part of a Standby Equity Purchase Agreement (SEPA) the two sides reached in August of 2009.
The current offering includes 107,500 Tower shares, valued at $150,000, which will be paid as a fee for the SEPA.
The share price in the transaction, after the fee, is $1.2695 ($1.289 per share before the fee).
Tower shares rose 2.2% to $1.35 on Friday.
Tower, led by CEO Russell Ellwanger, has about another $27 million available under the SEPA with Yorkville.
Tower does business as TowerJazz since acquiring Jazz in 2008.
Published by Globes [online], Israel business news - www.globes-online.com - on March 6, 2011
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