By Sheri Kasprzak
New York, Nov. 1 - On Track Innovations Ltd. said it concluded a private placement of units for $22,210,515.
The company issued 1,828,026 units at $12.15 each to a group of institutional investors from the United States, Switzerland and England. The price per unit is equal to the average closing price of OTI's shares for the five trading days before pricing.
Of the units sold, 1,544,568 are comprised of one share and one warrant for 0.6 of a share and 283,458 are comprised of one share and one half-share warrant. The whole warrants are exercisable at $14.58 each for five years.
However, the warrants do not become exercisable until May 1, 2006.
On Track may redeem the warrants after two years if its stock trades above $26.25 per share.
RBC Capital Markets Inc. was the bookrunner for the offering with Andrew Garrett, Inc. as co-agent.
OTI plans to use the proceeds to support large-scale implementation of projects in the identity and payments markets.
Based in Fort Lee, N.J., On Track makes microprocessor-based smart cards used for payment systems, homeland security, electronic passports and other services.
| Issuer: | On Track Innovations Ltd.
|
| Issue: | Units of one share and one warrant for 0.6 of a share or units of one share and one half-share warrant
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| Amount: | $22,210,515
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| Units: | 1,828,026
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| Price: | $12.15
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| Warrants: | For either 0.6 of a share or 0.5 of a share per unit
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| Warrant expiration: | Five years
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| Warrant strike price: | $14.58
|
| Placement agents: | RBC Capital Markets Inc. (lead), Andrew Garrett, Inc.
|
| Settlement date: | Nov. 1
|
| Stock price: | $13.06 at close Oct. 31
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