RoboGroup T.E.K. Ltd. (ROBO), today announced that it has signed a standby equity distribution agreement for it to issue shares to investment fund Cornell Capital Partners up to a maximum value of $5.5 million.
Under the terms of the agreement, RoboGroup may, at its discretion, issue shares to Cornell at any time over the next two years. The maximum aggregate amount of the equity placements pursuant to the agreement is $5.5 million. Subject to this limitation, RoboGroup may draw down up to $250,000 per week.
The shares will be issued to Cornell at the market price as of the date of the issuance.
Managed by US based Yorkville Advisers LLC, Cornell Capital Partners LP is a key player in structuring and executing equity agreements. Facilities similar to this standby equity distribution agreement are widely utilized by companies in the USA, UK and Australia. To date, the Cornell group has made available in excess of $800 million for over 100 publicly traded corporations.
RoboGroup CEO Rafael Aravot said, "We are delighted to have signed this agreement with Cornell. The advantage of this agreement is that although the funds are secured and available to us, any draw down of the facility will be at our discretion. I believe that this should give shareholders and investors confidence that we have a source for the funds needed for the continuation and the expansion of our operations."
"RoboGroup is an outstanding investment opportunity for us," said Cornell Capital president and portfolio manager Mark Angelo. "In our view, the different sectors, in which RoboGroup operates, show enormous potential, and we believe that RoboGoup is well positioned. We are eager to assist RoboGroup in meeting its ongoing financing needs for growth, and we look forward to a long-term relationship with the company."
RoboGroup engages in three business sectors. The first sector is devoted to RoboGroup's training products and e-learning systems. The second is Yaskawa Eshed Technology (YET), a joint venture with Japan's Yaskawa Electric Corp., which provides industrial motion controls, particularly those based on its patented algorithms. The third focuses on MemCall, a fabless VLSI semiconductor developer with unique Call Out Memory technology for Internet and communications applications requiring intensive search and filter capabilities.
Published by Globes [online] - www.globes.co.il - on Wednesday, June 23, 2004