Israel’s Scitex Corporation Ltd. Has decided to invest approximately five million dollars, in accordance with its prorata share, in a rights offering of Scitex Vision, its majority-owned subsidiary, and has signed a convertible loan agreement for the investment.
Clal Industries and Investments Ltd. and Discount Investment Corporation Ltd., two principal shareholders of Scitex Corporation that are also shareholders of Scitex Vision, agreed to invest an aggregate of approximately one million dollars, in accordance with their prorata share, in the rights offering. The transaction is subject to several closing conditions and is expected to be completed within several business days.
According to the terms of the loan agreement, the loan, which has a five-year term, may be converted into shares of Scitex Vision at a conversion price that reflects the same valuation of the transaction pursuant to which Scitex Vision was combined with Aprion Digital Ltd. earlier this year.
In addition, each lender will be granted warrants to purchase additional shares of Scitex Vision with 25 percent coverage of its loan, exercisable over a five-year term at a price equal to the conversion price. Other key terms of the agreement include the subordination of the loan to Scitex Vision's senior bank loans and the grant of registration rights to each lender with respect to the securities underlying the loan and warrants.
Scitex Vision is a developer, manufacturer and service provider of advanced digital printing presses and consumables for industrial applications including wide format graphic arts, packaging and textile.
Scitex Corporation Ltd. is a world leader in industrial inkjet digital printing solutions. Scitex shares trade on NASDAQ and The Tel Aviv Stock Exchange. — (menareport.com)
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