By Sheri Kasprzak
New York, Sept. 12 - NUR Macroprinters Ltd. said it has secured $12,005,000 from a private placement agreement with Fortissimo Capital Fund.
Fortissimo will buy 34.3 million shares of NUR at $0.35 each.
The investor will also receive warrants for up to 25.7 million shares, exercisable at $0.40 each for five years.
The investment will be made in three installments. The first $5 million will be made on closing, the second $5 million within 90 days of closing and the final $2 million on the first anniversary of closing.
The proceeds from the final installment will be used to reduce NUR's bank debt by $2 million.
Upon closing of the deal, NUR will issue shares and warrants for the second and third installments to an escrow agent to be held in trust pending payment of the remaining installments.
NUR has also entered into agreements with its lender banks, Bank Hapoalim BM, Bank Leumi le-Israel BM and Israel Discount Bank Ltd., for the conversion of $14 million in bank debt into five-year warrants for up to 8 million shares. The warrants are exercisable at $0.35 each.
The banks will also convert $5 million of NUR's outstanding bank debt into a zero-coupon subordinated note, payable only if NUR is liquidated. The note will be assigned to Fortissimo under the terms of the agreement.
Once the aforementioned bank debt is paid off, the remaining $22 million in outstanding bank debt will be rescheduled for payment under two new credit facilities.
The first is a short-term credit line for $11 million that matures in six years. The second is a long-term loan for $11 million that matures in 10 years. NUR will not be required to make any principal payments under the long-term loan for two years and the company has the option to repay the long-term loan after six years from the inception date of the new credit facility.
Based in Lod, Israel, NUR makes wide-format inkjet production printing systems for out-of-home advertising materials.
| Issuer: | NUR Macroprinters Ltd.
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| Issue: | Stock
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| Amount: | $12,005,000
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| Shares: | 34.3 million
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| Price: | $0.35
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| Warrants: | For 25.7 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.40
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| Investor: | Fortissimo Capital Fund
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| Announcement date: | Sept. 12
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| Stock price: | $0.62 at close Sept. 12
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