Electronics Line 3000 Ltd. / Contract/Liquidity Problem 02.06.2010 17:16 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Interest free loan from Risco Ltd. of USD 1.5 million in order to finance ongoing operations - Acceptance of necessary financing subject to approval of Audit Committee Petach Tikva, Israel (June 02, 2010) - Electronics Line 3000 Ltd. ('EL3K' or 'the Company') (XETRA: ELN), a leading global provider of wireless security with remote management solutions announces a financing offer from the Majority Shareholder Risco Ltd. The Financing foresees an interest free loan from Risco Ltd. to Electronics Line 3000 Ltd. of USD 1,500,000. The Financing became necessary because of the due repayment of invoice factoring loans as well as the due payment of purchases of necessary components and raw materials, and wages of the company's employees for the month of June. Under the current situation, the Company is not in a position to ask for an increase of the current credit facilities provided by the financing banks. With the acceptance of the financing offer, the Company will be able to meet its financial obligations until the end of July 2010. The Board of Directors discussed the cash flow situation of the Company and recommended to accept the offer from Risco. The financing of the Company however is also subject to the prior approval of the Company's audit committee. By Israeli Companies Law, for the purpose of approving a transaction of this kind, the audit committee has to consist of two external directors. The company is therefore currently not able to accept the financing offer from its main shareholder, as the audit committee currently consists of only one external director. In the General Meeting on June 7, 2010, the mandatory second external director is nominated for election. As soon as the second external director is elected, the Company will be able to accept the loan in order to fulfill its financial obligations. As the order situation and the potential of the Company seem promising, the Company intends to raise additional funds in order to grow the business accordingly. At the moment, different sources of funding are being evaluated by the Company's board. --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: About Electronics Line 3000 Electronics Line 3000 Ltd. (EL3K) is a leading global provider of wireless security with remote management solutions for the mass residential and commercial markets. Multiple technologies and applications are integrated in the solutions to enable real-time, two-way data, audio and video solutions. The Company has over 25 years of experience in the electronic security industry, and is well recognized for its technological innovations and for the high quality of its products. The Company partners with leading monitoring companies, distributors and residential service providers to create unique solutions. Disclaimer: 'This release contains forward-looking statements, which express the current beliefs and expectations of management. Such statements involve a number of known and unknown risks and uncertainties that could cause the Company's future results, performance or achievements to differ significantly from those expressed or implied by such forward-looking statements. A number of these risks and other factors that might cause differences, some of which could be material, along with additional discussion of forward-looking statements, are set forth in the Company's Annual Report and its other filings filed with the Israeli Securities Authority. Forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.' Contact: For more information please contact: Electronics Line 3000 Ltd. Romit Barratson Marketing Communication Manager romit.barratson@electronics-line.com For information in German please contact: Claudia Press ir@electronics-line.com 02.06.2010 17:16 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|] --------------------------------------------------------------------------- Language: English Company: Electronics Line 3000 Ltd. 2 Granit St. 49130 Petach Tikva Israel Phone: 00972 3 918 1344 Fax: 00972 3 921 1137 E-mail: ir@electronics-line.com Internet: www.electronics-line.com ISIN: IL0010905052 WKN: A0B5R7 Indices: General All-Share , DAXsector All Technology , DAXsubsector All Communications Technology Listed: Regulierter Markt in Frankfurt (General Standard); Freiverkehr in Berlin, München End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: Electronics Line 3000 Ltd.: Electronics Line 3000 announces financing offer from Risco Ltd.
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