Prospective investment in Metal-Tech (4767P)
October 04 2011 - 2:00AM
UK Regulatory
TIDMMTT
RNS Number : 4767P
Metal-Tech Ltd
04 October 2011
4 October 2011
Metal-Tech Ltd.
("Metal-Tech" or "the Company")
Prospective investment in Metal-Tech
Metal-Tech Ltd., the producer and recycler of speciality metals
such as Tungsten and Molybdenum, provides the following information
on a potentialinvestment in and funding of the Company.
Today Metal-Tech signed a memorandum of understanding ("MOU")
with Technoplus Ventures Ltd., an Israeli investment company that
has been publicly traded on the Tel-Aviv Stock Exchange (TASE:
TNPV) since 1999 ("Technoplus"), which states Technoplus' intention
to provide finance to the Company totaling 5 million US dollars in
consideration for the allocation of ordinary shares in the Company
which will represent 27.5% to 35% of the share capital of the
Company. The transaction is subject to the fulfillment of certain
conditions precedent, including the completion, by Technoplus and
its consultants, of a due diligence investigation of the Company
and its business to Technoplus' satisfaction; the drafting of the
definitive agreements stipulating the parties' understandings; and
shareholders' approval. Notwithstanding the intentions of the
parties to the MOU, there can be no certainty that the prospective
fundraising will be completed on the basis set out in the MOU.
The fundraising will primarily support the Company's increasing
requirement for working capital. As stated at the time of the
interim results on 26 September, 'the Company continues to maintain
tight control of cash and cost, whilst driving the business forward
by increasing its recycling and production activities.' The
fundraising will support this growth as well as facilitate the
purchase of raw materials that have experienced an increase in
price. The Company is looking for savings from other areas of the
business and in this respect is considering delisting from the AIM
market to save on costs.
Under the terms of the MOU, it is expected that the parties
shall seek to complete the transaction within 120 days from the
execution date of the MOU, during which the Company and anyone
acting on its behalf will refrain from negotiating with third
parties any transaction which involves issuance of shares and/or
options in the Company's equity.
Subject to closing, Technoplus will be given the rights to
appoint representatives to the Board of Directors of the Company,
and shall be involved in the management of the Company's business
operations.
Technoplus is an independent, Israeli-based investment company
that commenced its investment activities in 1997 and has been
publicly traded on the Tel-Aviv Stock Exchange (TASE: TNPV) since
1999. FBR Infinity II Ventures Partners Ltd. ("Infinity") holds the
majority stake of Technoplus' controlling group. Infinity leverages
its strong network and experience in both Israel and China to bring
added value to Israeli and Chinese companies, and Infinity's
Chinese partners, including inter alia CSVC, China Development Bank
and Digital China, participate alongside Infinity in its
investments in both Israeli and Chinese companies.
Until 2007, Technoplus operated as a venture capital fund and
currently manages a portfolio of 10 hi-tech companies. More
recently, Technoplus has focused on identifying and investing in
small- to mid-size profitable growth companies that are seeking to
raise funds in support of growth.
Under its new strategy, Technoplus has to date invested in two
companies, namely: D-LED Illumination Technologies Ltd., a leading
LED illumination company in Israel, and Shekel Electronic Scales
Ltd., a leading digital scales company in Israel. Both of these
companies have manufacturing facilities in China.
Upon closing, and based on its contacts in the Chinese market,
Technoplus aims to establish commercial collaborations for the
Company in China with the intention to expand Metal-Tech's business
operations in the Chinese market.
The Company will keep the market updated on any developments in
a timely manner.
Enquiries:
Metal-Tech Ltd. +972 544 215454
Ariel (Aik) Rosenberg
Panmure Gordon +44 20 7459 3600
Aubrey Powell
Hannah Woodley / Charles Leigh-Pemberton
Corfin Public Relations +44 20 7618 9100
Harry Chathli, Alexis Gore
This information is provided by RNS
The company news service from the London Stock Exchange
END
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