Israeli electronics systems developer RH Technologies today announced that it raised $5 million from the First Israel Mezzanine Investors (FIMI) fund.
Tel Aviv-listed RH Technologies said it issued five-year, convertible bonds totaling $5 million, with a coupon of 5% in exchange for the investment. The conversion price is NIS 14.5 per share, or 10.4% above the share’s market price at yesterday’s close, the company said in a statement.
FIMI also received five-year options to invest a further $1.5 million to buy additional stock at a strike price of NIS 14.5 per share, RH Technologies added.
If the bonds and options are converted into equity, FIMI will gain an 11.2% stake in the company, RH Technologies said.
RH Technologies chairman Yaakov Rosenberg said, “The company is proud to be part of FIMI’s portfolio of companies. The added value from the fund’s investment is reflected in the synergy between RH Technologies and a significant number of FIMI’s other portfolio companies.”
FIMI CEO Ishay Davidi said, “The investment in RH Technologies is another part of FIMI’s strategy. RH Technologies is a company with excellent management that during the difficult times, over the past two and a half years, succeeded in maintaining profitability.”
Published by Globes [online] - www.globes.co.il - on 18 September, 2003