PETACH-TIKVA, Israel,
Dec. 7, 2020 /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 November 2020, we issued
subscription rights to purchase up to an aggregate of 1,460,089
shares to the holders of our ordinary shares, such that each
shareholder received one subscription rights for every three
ordinary shares owned on the record date, with a subscription price
of $3.90 per share. The subscription
period ended on December 2,
2020. We received subscriptions for approximately $7.3 million, or 128% of the offering, therefore
we were able to allocate only portion of the over-subscription
demand. Our shareholders purchased 1,460,089 ordinary shares
in this offering providing gross proceeds of $5.7 million to the Company. Our principal
shareholder beneficially acquired a total of 1,203,389 ordinary
shares of the Company, increasing his direct and indirect voting
interest from 65.4% to 69.6%.
Mr. Eli Yaffe, CEO,
commented: "We are glad that there was a strong demand and over
subscription to the offering resulting in 100% of the offered
shares being purchased in this offering. The proceeds from the
offering will reduce our indebtedness to Nistec (our controlling
shareholder) which will improve our financial position and will be
used for working capital and other general corporate purposes,
including possible investment in plant and equipment to allow the
Company to accelerate its long-term growth plans."
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
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:
Some of the statements included in this press release may be
forward-looking statements that involve a number of risks and
uncertainties including, but not limited to expected results in
future quarters, the impact of the Coronavirus on the economy and
our operations, 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. Any
forward-looking statements set forth in this press release speak
only as of the date of this press release. The information found on
our website is not incorporated by reference into this press
release and is included for reference purposes only.
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Investor Contact:
Alon Mualem
Chief Financial
Officer
alonm@nisteceltek.com
+972-3-9395023
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SOURCE Eltek Ltd.