Business
Eltek Announces the Terms of Rights Offering
PETACH-TIKVA, Israel, November 9, 2020 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in
About this update from Eltek Ltd.
[{"type":"text","content":"PETACH-TIKVA, Israel, November 9, 2020 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, today provided the key dates and terms of its rights offering.\n\nA registration statement relating to the rights offering has been filed with the U.S. Securities and Exchange Commission (\"SEC\") and was declared effective today. \nUnder the terms of the rights offering, Eltek is distributing to its holders of ordinary shares as of the record date of November 9, 2020, at no charge, one non-transferable subscription rights for each three ordinary shares held or deemed held on the record date. Each right entitles the holder to purchase one ordinary share, at a subscription price of $3.90 per ordinary share. The subscription rights are non-transferable and may only be exercised during the subscription period of November 9, 2020 through 5:00 PM ET on December 2, 2020.\nThe calendar for the rights offering, unless extended or modified in Eltek's sole discretion, is as follows:\nMonday, November 9, 2020: Record Date and Subscription Period Begins Wednesday December 2, 2020: Subscription Period Ends 5:00 PM ETHolders who exercise their subscription rights in full will be entitled, if available, to subscribe for additional ordinary shares that are not purchased by other shareholders, on a pro rata basis.\nThe estimated net proceeds from the rights offering of approximately $5.6 million, assuming full participation in the rights offering and after deducting expenses related to the rights offering, will be used to repay our existing indebtedness to Nistec (our controlling shareholder), for working capital and other general corporate purposes, including investment in fixed assets.\nThe rights offering, is being made only by means of a written prospectus. A prospectus is available on the SEC's website at https://www.sec.gov. Copies of the final prospectus for the rights offering may be obtained, when available, from D.F. King & Co. Inc., at [email protected], or at (800)-283-2170. \nThis press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these ordinary shares in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualific...