By Jennifer Chiou
New York, March 29 - Orckit Communications Ltd. announced that it entered into purchase agreements to sell up to $10.62 million of units via placement agent via Roth Capital Partners, LLC.
The company will sell up to 2.81 million units, consisting of one ordinary share, one quarter-share warrant and one contingent quarter-share warrant, at $3.78 apiece.
The quarter-share warrants are exercisable for five years at an exercise price of $5.66 per share while the contingent quarter-share warrants are exercisable at $11.32 per share, also for a five-year term. Each set of warrants is exercisable for 702,500 ordinary shares.
The warrants and contingent warrants will not be separable from each other, but will be immediately separable from the ordinary shares.
If, one year after issue, the closing price of Orckit's ordinary shares for any 20 trading-day period within a 30 trading-day period is equal to or greater than $11.32 per share, the company may elect to require the exercise of all unexercised primary warrants.
Among the investors in the offering are Izhak Tamir and Eric Paneth, who are founders, executive officers and directors of Orckit. They have agreed to purchase 100,000 and 75,000 units, respectively, subject to shareholder approval.
Proceeds are earmarked for increased research and development activities as well as working capital and other general corporate purposes.
Settlement is slated for April 1.
Orckit, is a Tel-Aviv, Israel-based maker of broadband telecommunications equipment.
| Issuer: | Orckit Communications Ltd.
|
| Issue: | Units of one ordinary share, one quarter-share warrant and one contingent quarter-share warrant
|
| Amount: | $10,621,800
|
| Units: | 2.81 million
|
| Price: | $3.78
|
| Warrants: | Quarter-share warrants exercisable for 702,500 shares and contingent quarter-share warrants exercisable for 702,500 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $5.66 for quarter-share warrants; $11.32 for contingent quarter-share warrants
|
| Agent: | Roth Capital Partners, LLC
|
| Pricing date: | March 26
|
| Stock symbol: | Nasdaq/Tel Aviv Stock Exchange: ORCT
|
| Stock price: | $4.81 at close March 26/NIS 18.66 at close March 28
|
| Market capitalization: | $65.44 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
