Scitex Invests $5 Million in Majority-Owned Subsidiary Scitex Vision
Press release from the issuing company
TEL AVIV, Israel, June 29 -- Scitex Corporation Ltd. announced today that it has agreed to invest approximately $5 million, in accordance with its prorata share, in a rights offering of Scitex Vision, its majority-owned subsidiary, and has signed today 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 $1 million, 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% coverage of its loan, exercisable over a 5-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.
Commenting on the rights offering, Dov Ofer, Scitex Vision's President and CEO, stated: "The additional funds will be used, among other needs, to strengthen our cash position and support the company's penetration into new markets, as well as reinforcing our key positioning in the Graphic Arts market."
Nachum ("Homi") Shamir, the newly-appointed President and CEO of Scitex Corporation, added: "The rights issue demonstrates the commitment of Scitex and other key shareholders of Scitex Vision to the continued development and growth of Scitex Vision. The additional investment in Scitex Vision is in line with Scitex's overall strategy of strengthening its industrial inkjet digital printing activities."
WhatTheyThink is the global printing industry's leading independent media organization with both print and digital offerings, including WhatTheyThink.com, PrintingNews.com and WhatTheyThink magazine versioned with a Printing News and Wide-Format & Signage edition. Our mission is to provide cogent news and analysis about trends, technologies, operations, and events in all the markets that comprise today’s printing and sign industries including commercial, in-plant, mailing, finishing, sign, display, textile, industrial, finishing, labels, packaging, marketing technology, software and workflow.