ANN ARBOR, Mich., Feb. 3, 2016 /PRNewswire/ -- Arotech
Corporation (Nasdaq GM: ARTX) announced today that it has signed a
definitive agreement with internationally-recognized aerospace and
defense investment firm Admiralty Partners, Inc. and closed on the
sale to Admiralty of 1.5 million shares of its stock in a private
placement at a price of $1.99 per
share, resulting in proceeds to Arotech of $2.985 million. The price of $1.99 per share was set by the parties based on
the price of Arotech's stock at the time negotiations commenced. In
conjunction with this investment, Jon B.
Kutler, Admiralty Partners Chairman and CEO, will join
Arotech's Board of Directors. Additional details regarding the
material terms of the transaction will be disclosed in a Current
Report on Form 8-K expected to be filed today.
"We are truly flattered and excited by this vote of confidence
from a legend in the aerospace and defense investment world, and we
are thrilled to welcome Jon to our Board of Directors," commented
Steven Esses, Arotech's President
and CEO. "Jon's expertise in the fields of aerospace and defense is
expected to help us to grow our business and aid in creating
long-term shareholder value. We look forward to benefiting from
Jon's vast knowledge, experience and contacts," Mr. Esses
concluded.
"Arotech is positioned at the confluence of two trends in the
defense industry – disproportionate government investment in key
growth areas and the consolidation of the fragmented third-tier
supplier base" said Jon B. Kutler,
Admiralty Partners CEO. "Its strong presence in training and
simulation and power systems, combined now with an increased
capability to participate as a consolidator, are expected to
provide multiple opportunities and avenues for growth and enhanced
shareholder value."
Mr. Kutler is a recognized investor, investment banker and
expert in the aerospace and defense industries. After service in
the U.S. Navy and nearly a decade on
Wall Street, Mr. Kutler founded Quarterdeck Investment Partners,
Inc., a leading international investment bank focused exclusively
on the global aerospace and defense markets. He sold Quarterdeck to
Jefferies & Company in 2002 to focus on private equity
investments under Admiralty Partners (www.admiraltypartners.com).
Mr. Kutler has been profiled in numerous international trade and
business publications and television and has been a leading voice
regarding trends in the aerospace and defense sectors. He is a
Trustee of the California Institute of
Technology where he serves as Chairman of the Jet Propulsion
Lab Committee. Mr. Kutler is a graduate of the United States Naval Academy and he received his
Masters of Business Administration from Harvard University.
The offer and sale of the shares have not been registered under
the Securities Act of 1933, as amended, and the shares may not be
offered or sold in the United
States absent registration under such act and applicable
state securities laws or an applicable exemption from those
registration requirements. Arotech has agreed to file a
registration statement covering the resale of the common stock
issued in the private placement. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of these securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to the registration or qualification under the securities laws of
any such jurisdiction.
About Arotech Corporation
Arotech Corporation is a leading provider of quality defense and
security products for the military, law enforcement and homeland
security markets, including multimedia interactive
simulators/trainers and advanced zinc-air and lithium batteries and
chargers. Arotech operates two major business divisions: Training
and Simulation, and Power Systems.
Arotech is incorporated in Delaware, with corporate offices in
Ann Arbor, Michigan, and research,
development and production subsidiaries in Michigan, South
Carolina, and Israel. For
more information on Arotech, please visit Arotech's website at
www.arotech.com.
Investor Relations Contacts:
Brett Maas / Rob Fink
Hayden IR
(646) 536.7331 / (646) 415.8972
ARTX@haydenir.com
Except for the historical information herein, the matters
discussed in this news release include forward-looking statements,
as defined in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements reflect management's current knowledge,
assumptions, judgment and expectations regarding future performance
or events. Although management believes that the expectations
reflected in such statements are reasonable, readers are cautioned
not to place undue reliance on these forward-looking statements, as
they are subject to various risks and uncertainties that may cause
actual results to vary materially. These risks and uncertainties
include, but are not limited to, risks relating to: product and
technology development; the uncertainty of the market for Arotech's
products; changing economic conditions; delay, cancellation or
non-renewal, in whole or in part, of contracts or of purchase
orders (including as a result of budgetary cuts resulting from
automatic sequestration under the Budget Control Act of 2011); and
other risk factors detailed in Arotech's most recent Annual Report
on Form 10-K for the fiscal year ended December 31, 2014 and other filings with the
Securities and Exchange Commission. Arotech assumes no obligation
to update the information in this release. Reference to the
Company's website above does not constitute incorporation of any of
the information thereon into this press release.
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SOURCE Arotech Corporation