NUR Macroprinters Receives $4.5 Million of Equity Funding
Press release from the issuing company
LOD, Israel, April 1 -- NUR Macroprinters, a leading supplier of wide-format inkjet production printing systems for the out-of-home advertising market, today announced that it has received $4.5 million of equity funding from the sale of ordinary shares. $3 million of the funding was provided from new investors and $1.5 million from investors who last year provided a $3.5 million stand-by convertible loan.
The new investment of $3.0 million was a private placement (or PIPE investment). Under the PIPE investment, NUR issued 2,586,207 of its ordinary shares at $1.16 per ordinary share. NUR expects to receive from the new investment approximately $2.8 million, net of expenses. NUR also issued to the investors warrants to purchase up to 646,552 ordinary shares at an exercise price of $1.54 per share. The warrants are exercisable for five years from the closing date of the PIPE. The securities offered in the PIPE have not been registered under the Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Act. NUR plans to use its best efforts to register all PIPE-related shares (both those purchased and those issuable pursuant to the warrants) for resale under the Act.
Duncan Capital LLC, a NASD registered broker dealer, served as placement agent for the PIPE investment.
Additional funding was provided from investors who exercised their right to purchase ordinary shares of the Company by converting $1.5 million of the $3.5 million stand-by loan. The conversion price was $0.62 per share, approximately 20% higher than the NUR's stock price at the time it accepted the investor term sheet in mid-2003. The investors previously converted the remaining $2.0 million of the standing loan on December 31, 2003.
Mr. Dan Purjes, Chairman of the Board and a majority shareholder in NUR, participated in this stand-by loan in approximately the amount of $1.3 million. Mr. Purjes exercised his right to convert $0.9 million of the standing loan. Mr. Purjes had previously converted $0.4 million of the standing loan on December 31, 2003
This equity investment was initiated by NUR in order to improve its working capital and to meet an anticipated increase in manufacturing volumes in 2004. As an inducement for conversion, NUR offered to register the shares issued under the conversion as soon as possible.
Commenting on the equity funding, Dan Purjes, Chairman of the Board, said, "As our company ramps up to meet the growing demand for our equipment and develop state of the art digital tools to meet our market's needs, the additional funds from the PIPE and the stand-by financings will facilitate our growth efforts. We plan to use these resources to maximize shareholder value. I am pleased to have participated meaningfully in this equity financing."
David Amir, NUR Macroprinter's President and CEO, stated, "The commitment of the new investors and the conversion of the stand-by loan by existing investors demonstrates support for our strategic growth plans. We look forward to optimizing our efforts to increase sales within our target markets."
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