Camtek Ltd. (Nasdaq: CAMT; TASE:CAMT) saw its share price tumble 13.6% in Nasdaq trading yesterday on seven times the average turnover in the share, and 5.5% in today's TASE trading. The reason for the drop in the share was the filing of a final version of a shelf prospectus to the US Securities and Exchange Commission (SEC). Camtek, run by CEO Rafi Amit, is to raise $50 million through an issue of ordinary shares, rights, options, or a combination of all three.
At the same time, Priortech Ltd. (TASE:PRTC), the controlling shareholder in Camtek, is likely to sell up to six million Camtek shares. At the current price, the shares are worth $39.8 million. If the sale indeed takes place, Priortech's stake will fall from 46.9% to 29.2%.
Meitav Dash's holdings for sale
As in the previous shelf prospectus filed by Camtek, the holdings of Meitav Dash Investments Ltd. (TASE:MTDS) will also be up for sale. The company holds options on 1.65 million Camtek shares, all of which are likely to be sold. The options were part of an agreement for an NIS 80 million loan granted by Meitav Dash to Priortech last year, designed to enable Priortech to pay its debt to FIMI Opportunity Funds.
As part of the agreement, Priortech gave Meitav Dash options on 4.5% of Camtek's shares at an exercise price of $2.36 per share (the current share price is $6.63). The options are valid until 2021.
Camtek produces testing systems for the printed circuits industry. Despite yesterday's drop in the share price, the return on the share this year is still 102%. Camtek's market cap is $234 million, and the company had $24.3 million in cash at the end of the first quarter.
Published by Globes [online], Israel Business News - www.globes-online.com - on June 8, 2017
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