NUR Macroprinters to Be Delisted from the Nasdaq SmallCap Market
Press release from the issuing company
LOD, Israel--May 17, 2005-- NUR Macroprinters Ltd., a leading supplier of wide-format inkjet production printing systems for the out-of-home advertising market, today announced that its ordinary shares will be delisted from the Nasdaq SmallCap Market. As previously announced, NUR had secured an extension until May 16, 2004 to report a stockholder's equity of at least $2.5 million in order to maintain its listing and satisfy the Nasdaq SmallCap Market's minimum continued listing requirements. NUR had anticipated meeting the minimum equity requirements through completion of the previously announced investment by Inspire Investments Ltd. and the restructuring of its outstanding bank debt. However, the completion of these transactions has been delayed pending completion of the audit work related to NUR's 2004 financial statements. NUR will seek to have its ordinary shares quoted on the OTC Bulletin Board after delisting from the Nasdaq SmallCap Market and will provide additional information to investors in due course.
Over the past few months, NUR has made significant progress on a financial restructuring that is aimed at making NUR a stronger and more stable company. NUR has reached an agreement with Inspire Investments Ltd. regarding an investment by Inspire of $10 million in NUR. NUR has also reached an agreement with its lender banks regarding the conversion of $15 million of NUR's outstanding bank debt into equity. The combination of the Inspire investment and the restructuring of NUR's outstanding bank debt is expected to strengthen NUR's financial position by infusing $10 million in cash into the business, reducing NUR's current debt burden by 35% and rescheduling NUR's remaining $28 million of debt over the next 7 years under commercial terms that better suit NUR's business model.
The closing of the Inspire investment remains subject to the completion by NUR's independent auditors of the audit work related to its 2004 financial statements, the completion of the due diligence by Inspire and the completion of the restructuring of NUR's outstanding bank debt (as described above). The completion of the restructuring of the NUR's outstanding bank debt is conditioned upon the completion of the Inspire investment. While NUR currently expects the audit work related to its 2004 financial statements to be completed within the next few weeks, there can be no assurance that the Inspire investment and the restructuring of NUR's bank debt will be completed. The debt restructuring agreement will terminate if the closing conditions thereof do not occur by the earlier of June 15, 2005 or two weeks following the date of publication of NUR's 2004 financial statements.
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