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.
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- 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.
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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|]]]|]
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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
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DGAP-Adhoc: Electronics Line 3000 Ltd.: Electronics Line 3000 announces financing offer from Risco Ltd.
| Source: EQS Group AG