TEL AVIV, Israel, March 12, 2008 (PRIME NEWSWIRE) -- Top Image Systems (Nasdaq:TISA) (TASE:TISA) today announced that its Board of Directors has approved the payment of up to US$2.5 million (NIS 9 million) to repurchase outstanding Series A convertible debentures that the Company issued on December 18, 2006 on the Tel Aviv Stock Exchange. These repurchases may be in open market transactions, privately negotiated transactions or a combination of the two.
"This debt repurchase represents our belief in the Company's long-term financial strength," commented Dr. Ido Schechter, CEO of Top Image Systems. "Given the current market price, the board and I share the view that this debt repurchase is a very sound investment decision for the company. Additionally, the repurchase will enable us to lower our financial expenses and improve our profitability going forward."
The original public offering of NIS 61.9 million of Series A convertible debentures was comprised of 112,500 convertible debentures, each with a par value of NIS 528, bearing interest at the annual rate of six-month LIBOR minus 0.3%. The Company also issued 0.5 million par value debentures carrying the same terms for one of its underwriters. The principal amount of the Series A convertible debentures is repayable in four annual installments beginning December 31, 2009.
About Top Image Systems
Top Image Systems is a leading innovator of enterprise solutions for managing and validating content entering organizations from various sources. Whether originating from mobile, electronic, paper or other sources, TIS solutions deliver the content to applications that drive the organization. TIS's eFLOW Unified Content Platform is a common platform for the company's solutions. TIS markets its platform in more than 30 countries through a multi-tier network of distributors, system integrators, value added resellers as well as strategic partners. Visit the company's website www.TopImageSystems.com for more information.
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Caution Concerning Forward-Looking Statements
Certain matters discussed in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially including, but not limited to, risks in product development plans and schedules, rapid technological change, changes and delays in product approval and introduction, customer acceptance of new products, the impact of competitive products and pricing, market acceptance, the lengthy sales cycle, proprietary rights of the Company and its competitors, risk of operations in Israel, government regulation, dependence on third parties to manufacture products, quarterly fluctuations in sales of products in the Data Capture market (where in general the fourth quarter is the strongest and the first quarter is the weakest), the Company's ability to successfully integrate the businesses it recently acquired, litigation (including litigation over intellectual property rights), general economic conditions and other risk factors detailed in the Company's most recent annual report on Form 20-F and other subsequent filings with the United States Securities and Exchange Commission. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.