Emblaze Ltd (LSE:BLZ)
("Emblaze" or "the Company")
Company Update
Fortissimo Call Option
Tel Aviv, Israel, 20 February, 2014
Fortissimo Call Option
Capitalised terms will have the meanings ascribed to them in the Company's
announcements of 15 August 2013, 22 August 2013 and 14 February, 2014.
Further to the Company's announcement of 14 February, 2014, Israel 18 B.V.
formerly known as Chabad 770 B.V. ("Israel 18") has informed the Company that
it has entered into agreements with Fortissimo in respect of the Fortissimo
Call Option (the "Amendment Agreements"). Pursuant to the Amendment Agreements,
Israel 18 expects to exercise the Fortissimo Call Option in accordance with the
following time-line and for the following prices:
* 3,342,233 shares of Emblaze for consideration of US$ 5,000,000, which
Israel 18 has already paid. In this regard it should be noted that the said
portion of shares have not yet been transferred to Israel 18 and they are
expected to be transferred to Israel 18's account within the next few days;
* 2,770,762 shares of Emblaze for consideration of US$ 4,145,075, which
Israel 18 expects to pay by 31 March, 2014 (the "March Instalment"); and
* 2,770,762 shares of Emblaze for consideration of US$ 4,145,075, which
Israel 18 expects to pay by 30 April, 2014 (the "April Instalment").
As consideration for the extension of the period for exercise of the Fortissimo
Call Option, Israel 18 will pay, in addition to the above:
* a sum of US$ 250,000 together with payment in relation to each of the March
Instalment and the April Instalment; and
* a sum of US$ 700,000 upon the completion of the purchase by Israel 18 of
all of Fortissimo's holdings in the Company or by the 31st of December,
2014 - whichever is earlier (the "Completion").
The Amendment Agreements contain provision for penalty payments in case of a
delay in payment of the above consideration.
The Company will continue to notify shareholders of any updates with regard to
the Call Options by issuing further announcements via PRN, a Regulatory
Information Service. All such announcements may also be viewed at the same time
on the Company's website at www.emblaze.com.
Enquiries:
Eyal Merdler, CFO: Eyal.Merdler@emblaze.com
The Emblaze Group has been traded on the London Stock Exchange (LSE: BLZ) since
1996.
www.emblaze.com
ERM/424975v1