Offering includes warrants; proceeds will be used for working capital
By Devika Patel
Knoxville, Tenn., Dec. 20 - Magic Software Enterprises Ltd. said it negotiated definitive agreements for a private placement of stock. The deal will raise about $21.2 million.
The company will sell about 3.26 million ordinary shares at $6.50 apiece. The price per share is a 14.81% discount to the Dec. 17 closing share price of $7.63.
The investors will also receive three-year warrants for approximately 1.13 million shares, which are each exercisable at $8.26. The strike price represents an 8.26% premium to the Dec. 17 closing share price.
Rodman & Renshaw, LLC is the agent.
Settlement is expected Dec. 23.
Proceeds will be used for working capital purposes.
Based in Or Yehuda, Israel, Magic Software develops, markets, sells and supports an application platform and business and process-integration solutions.
| Issuer: | Magic Software Enterprises Ltd.
|
| Issue: | Ordinary shares
|
| Amount: | $21.2 million (approximate)
|
| Shares: | 3.26 million (approximate)
|
| Price: | $6.50
|
| Warrants: | For approximately 1.13 million shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $8.26
|
| Agent: | Rodman & Renshaw, LLC
|
| Pricing date: | Dec. 20
|
| Settlement date: | Dec. 23
|
| Stock symbol: | Nasdaq: MGIC
|
| Stock price: | $7.63 at close Dec. 17
|
| Market capitalization: | $218.94 million
|
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