Magal Security Systems (MAGS) Commences Rights Offering
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Magal Security Systems Ltd. (NASDAQ: MAGS) announced today that it has commenced a rights offering for approximate gross proceeds of $24 million. Magal has granted, at no charge to the holders of record of its Ordinary Shares, par value NIS 1.00 per share, as of 5:00 p.m., New York City time, on September 9, 2016, the record date for the rights offering, one non-transferable subscription right for each eight (8) Ordinary Shares owned.
Each subscription right entitles the holder to purchase three (3) Ordinary Shares at a subscription price of $11.58 (reflecting a price of $3.86 per Ordinary Share). In addition, holders of subscription rights who fully exercise their basic subscription rights are entitled to oversubscribe for additional Ordinary Shares that remain unsubscribed as a result of any unexercised basic subscription rights.
The rights offering is expected to expire at 5:00 p.m., New York City time, on September 30, 2016, subject to earlier termination.
Magal intends to use the net proceeds from this offering for general corporate purposes focused on growing our business, including through acquisitions or investments in complementary companies or technologies.
Magal controlling shareholders, certain limited partnerships managed by FIMI, have informed the Company that they intend to exercise their subscription rights in full and, may elect, (and to the extent applicable), to exercise the over-subscription rights to such extent that FIMI's holdings do not equal or exceed 50% of our voting rights following the exercise of such rights.
The terms of the rights offering are more fully described in the prospectus filed with the U.S. Securities and Exchange Commission ("SEC").
Promptly following the record date, Magal will mail rights certificates and copies of the prospectus to all record holders. Magal shareholders who hold through a broker, bank or other nominee will have the rights credited to their accounts at such nominee.
Magal has filed a Registration Statement on Form F-1, which has been declared effective by the SEC, and the rights offering is being effected by means of a prospectus forming part of such registration statement.
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