Netanya, Israel, August 25, 2017 – RADA Electronic Industries Ltd. (NASDAQ: RADA) announced that following recent capital raising activity with institutional investors, the conversion of loans to equity and exercise of warrants by its primary shareholder, it has increased its net cash position by $13.3 million while reducing its ongoing annual interest payments by approximately $250,000.
On August 21, RADA completed a $10 million capital raise under an existing shelf prospectus, issuing 4,604,500 shares. The investors included leading Israeli institutional investors, including Yelin-Lapidot Investment House, More Investment House, Noked Capital, and The Phoenix Insurance Company.
From August 17 until September 5, DBSI, the Company’s primary shareholder exercised warrants and converted a loan to equity. It sold a portion of the shares gained to institutional investors including Optimus Fund and others. On a net basis over the period, DBSI increased its shareholding in RADA by 1,168,782 shares to approximately 12.2 million shares, representing 35% of the Company’s equity (on a fully diluted basis).
Yossi Ben Shalom, RADA’s Chairman, commented: “Our recent activity has significantly strengthened RADA’s capital base and our efforts have brought in a number of important and long-term focused institutional investors to the company, joining DBSI. At the same time, DBSI has also increased its shareholdings of the Company. These investments from leading players in the local capital market, demonstrate a shared belief in RADA’s strategy going forward, management’s ability to realize that strategy and the potential for significant shareholder value creation in the future.”