PETAH TIKVA, Israel, April 10,
2019 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global
manufacturer and supplier of technologically advanced solutions in
the field of printed circuit boards, today provided an update
regarding the Company's recently completed rights
offering.
In March 2019, we issued at no
charge to the holders of our ordinary shares subscription rights to
purchase up to an aggregate of 3,380,920 shares, such that each
shareholders received five subscription rights for every three
ordinary shares owned on the record date, at a price of
$1.464 per share. The subscription
period ended on April 9, 2019. Our
shareholders purchased 2,351,701 ordinary shares providing gross
proceeds of $3.4 million to the
Company. Our principal shareholder beneficially acquired a total of
1,914,076 ordinary shares of the Company, increasing his direct and
indirect voting interest from 56.6% to 69.9%.
Mr. Eli Yaffe, CEO,
commented: "We appreciate that approximately 70%
of the shares were subscribed for in this offering.
The proceeds from the offering will improve our financial
position as we intend to repay a NIS 5.0 million (approximately US$1.4 million) bank line of credit. The
remainder will be used for working capital and other general
corporate purposes, including the possible investment in plant and
equipment."
About Eltek
Eltek – "Innovation Across the Board", is
a global manufacturer and supplier of technologically advanced
solutions in the field of printed circuit boards (PCBs), and is the
Israeli leader in this industry. PCBs are the core circuitry of
most electronic devices. Eltek specializes in the manufacture and
supply of complex and high quality PCBs, HDI, multilayered and
flex-rigid boards for the high-end market. Eltek is ITAR compliant
and has AS-9100 and NADCAP Electronics certifications. Its
customers include leading companies in the defense, aerospace and
medical industries in Israel,
the United States, Europe and Asia.
Eltek was founded in 1970. The Company's headquarters, R&D,
production and marketing center are located in Israel. Eltek also operates through its
subsidiaries in North America and
in Europe and by agents and
distributors in Europe,
India, South Africa and South America.
For more information, visit Eltek's web site at
www.nisteceltek.com.
Forward Looking Statement:
Certain matters discussed
in this news release are forward-looking statements that involve a
number of risks and uncertainties including, but not limited to
statements regarding expected results in future quarters, risks in
product and technology development and rapid technological change,
product demand, the impact of competitive products and pricing,
market acceptance, the sales cycle, changing economic conditions
and other risk factors detailed in the Company's Annual Report on
Form 20-F and other filings with the United States Securities and
Exchange Commission.
Investor Contact:
Alon
Mualem
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Chief Financial
Officer
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alonm@nisteceltek.com
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+972-3-9395023
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SOURCE Eltek Ltd.