PETACH-TIKVA, Israel,
Jan. 9, 2019 /PRNewswire/ -- Eltek
Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of
technologically advanced solutions in the field of printed circuit
boards, announced today that the Company obtained a loan of
NIS 2 million (approximately
US$530,000) from Nistec Golan, the
Company's controlling shareholder, in order to decrease Eltek's
debt to one of its banks.
The loan agreement between the Company and Nistec was approved
by the Company's Audit Committee and Board of Directors. The
principal terms of the loan are:
- The loan will bear interest of Prime+ 1.35%. Since Nistec
obtained a loan from a commercial bank for a repayment on behalf of
Eltek, should Eltek fail to repay the loan and accrued interest on
the due date, the interest shall be increased to the interest
determined by the bank with respect to the underlying loan received
by Nistec.
- The loan will be repaid by April
30, 2019. However, Eltek has the option to extend the
term of the loan until March 31, 2020
in the event that its Audit Committee determines that such
extension is required for the Company's orderly operations.
- In the event of an equity investment in the Company, Nistec may
demand immediate repayment of the loan, provided that such
repayment will be used only for a conversion of the loan into the
Company's ordinary shares.
- Nistec may demand immediate repayment of the loan upon the
occurrence of certain customary events of default or in the event
of a change of control.
- The loan (or any part thereof) may be repaid at any time at the
Company's discretion.
In addition, the Audit Committee and Board of Directors have
approved Nistec's guarantee of Eltek's NIS
2.0 Million (approximately US$530,000) existing debt to the same bank, which
debt to such bank will be repaid by Eltek by April 30, 2019. Consequently, this guarantee will
expire on April 30, 2019. Eltek may
request that Nistec pay its debt to the bank, and in such event,
the guarantee will convert into a loan to Eltek, which will be
repaid by March 31, 2020. The terms
of the loan will be back-to-back with the terms of the loan taken
by Nistec for such payment, or with "Risk-free" Israeli government
bonds interest, or with no interest, at Nistec's discretion. The
terms of the loan agreement will be the same as the terms of the
loan agreement described above, with required
amendments.
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.
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.
For more information, visit Eltek's web site at
www.nisteceltek.com.
Investor Contact:
Eli
Yaffe
|
|
Amnon
Shemer
|
Chief Executive
Officer
|
|
Chief Financial
Officer
|
eliy@nisteceltek.com
|
|
amnons@nisteceltek.com
|
+972-3-9395023
|
|
+972-3-9395023
|
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SOURCE Eltek Ltd.