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Eltek Ltd., a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, has provided an update regarding the Company's recently completed rights offering.
In November 2020, we issued subscription rights to purchase up to an aggregate of 1,460,089 shares to the holders of our ordinary shares, such that each shareholder received one subscription rights for every three ordinary shares owned on the record date, with a subscription price of $3.90 per share. The subscription period ended on December 2, 2020. We received subscriptions for approximately $7.3 million, or 128% of the offering, therefore we were able to allocate only portion of the over-subscription demand. Our shareholders purchased 1,460,089 ordinary shares in this offering providing gross proceeds of $5.7 million to the Company. Our principal shareholder beneficially acquired a total of 1,203,389 ordinary shares of the Company, increasing his direct and indirect voting interest from 65.4% to 69.6%.
Eli Yaffe, CEO, commented: "We are glad that there was a strong demand and over subscription to the offering resulting in 100% of the offered shares being purchased in this offering. The proceeds from the offering will reduce our indebtedness to Nistec (our controlling shareholder) which will improve our financial position and will be used for working capital and other general corporate purposes, including possible investment in plant and equipment to allow the Company to accelerate its long-term growth plans."