News Release Issued: May 25, 2021 (8:30am EDT)
To view this release online and get more information about oti Investor Relations visit: investors.otiglobal.com/...ed-Rights-Offering-to-Shareholders
OTI Announces Completion of Oversubscribed Rights Offering to Shareholders
Approximately 19 million shares issued raising $3.3 million in gross proceeds strengthening balance sheet
YOKNEAM, Israel, May 25, 2021 /PRNewswire/ -- On Track Innovations Ltd. (OTI) (OTCQX: OTIVF), a global provider of near field communication (NFC) and cashless payment solutions, today announced that its previously announced rights offering (the "Rights Offering"), closed on May 19, 2021. The offering was oversubscribed and generated $3.3 million in gross proceeds. OTI intends to use the proceeds from the Rights Offering primarily to support its working capital needs and fund its operations and to a lesser degree for new product development activities.
OTI issued an aggregate of 18,965,517 ordinary shares at $0.174 per share. It is noted that this includes 10,869,304 shares issued to the Company's controlling shareholder, The Jerry Ivy, Jr. Descendants' Trust (Ivy) and its affiliates, upon exercise of its basic subscription rights and over-subscription rights. Following the offering, Ivy and its affiliates own 35.9% of issued and outstanding shares. Also, Ivy has an existing right to purchase additional shares from OTI upon conversion of a $1.5 million loan that Ivy extended to OTI and interest accrued, which may increase his percentage of holdings in OTI.
Yehuda Holtzman, CEO of OTI commented: "I would like to thank all our shareholders and long-term supporters for their show of confidence in OTI and in our strategic plan. We see significant long-term potential in our business, and we see this capital raise as an important step in securing our future."
To view this release online and get more information about oti Investor Relations visit: investors.otiglobal.com/...ed-Rights-Offering-to-Shareholders
OTI Announces Completion of Oversubscribed Rights Offering to Shareholders
Approximately 19 million shares issued raising $3.3 million in gross proceeds strengthening balance sheet
YOKNEAM, Israel, May 25, 2021 /PRNewswire/ -- On Track Innovations Ltd. (OTI) (OTCQX: OTIVF), a global provider of near field communication (NFC) and cashless payment solutions, today announced that its previously announced rights offering (the "Rights Offering"), closed on May 19, 2021. The offering was oversubscribed and generated $3.3 million in gross proceeds. OTI intends to use the proceeds from the Rights Offering primarily to support its working capital needs and fund its operations and to a lesser degree for new product development activities.
OTI issued an aggregate of 18,965,517 ordinary shares at $0.174 per share. It is noted that this includes 10,869,304 shares issued to the Company's controlling shareholder, The Jerry Ivy, Jr. Descendants' Trust (Ivy) and its affiliates, upon exercise of its basic subscription rights and over-subscription rights. Following the offering, Ivy and its affiliates own 35.9% of issued and outstanding shares. Also, Ivy has an existing right to purchase additional shares from OTI upon conversion of a $1.5 million loan that Ivy extended to OTI and interest accrued, which may increase his percentage of holdings in OTI.
Yehuda Holtzman, CEO of OTI commented: "I would like to thank all our shareholders and long-term supporters for their show of confidence in OTI and in our strategic plan. We see significant long-term potential in our business, and we see this capital raise as an important step in securing our future."