Ability’s Line of Credit to be Repaid and Converted into Equity
December 28 2018 - 6:00AM
Ability Inc. (NASDAQ: ABIL) (the “Company”), a provider of
innovative tactical communications intelligence solutions, today
announced that Anatoly Hurgin and Alexander Aurovsky, founders and
officers and directors of the Company, have entered into an
agreement with the Company pursuant to which the amount outstanding
under the Company’s line of credit (NIS 5.5 million, or
approximately $1.5 million), which is secured with funds of Messrs.
Hurgin and Aurovsky, will be repaid and converted into equity.
Under the terms of the agreement, the Company’s
outstanding line of credit with an Israeli commercial bank (NIS 5.5
million, or approximately $1.5 million) will be repaid using funds
to be transferred to the Company by Messrs. Hurgin and Aurovsky. In
return, the Company will issue, in a private placement, to each of
Messrs. Hurgin and Aurovsky 226,426 ordinary shares (452,852
ordinary shares in the aggregate) and warrants to purchase 226,426
ordinary shares (452,852 ordinary shares in the aggregate) at a
conversion price of $3.25, the same price per unit of the Company’s
recently closed public offering. The warrants will be immediately
exercisable at a price of $3.25 per ordinary share, subject to
adjustment in certain circumstances, expire five years from the
date of issuance and contain substantially similar terms to the
warrants issued in the recently closed public offering. Closing is
expected to take place on or around January 3, 2019.
The securities to be issued in the private
placement described above will be offered in a private placement
pursuant to an exemption from the registration requirements under
Regulation S and/or Section 4(a)(2) of the Securities Act of 1933,
as amended (the “Act”), Rule 506 of Regulation D promulgated
thereunder. The offer and sale of the securities will be made
without any form of general solicitation or advertising. The
securities have not been registered under the Act or applicable
state securities laws. Accordingly, the securities, and may not be
offered or sold in the United States except pursuant to an
effective registration statement or an applicable exemption the
such registration requirements of the Act and such applicable state
securities laws.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy any of the
securities described herein. There shall not be any offer,
solicitation of an offer to buy, or sale of securities in any state
or jurisdiction in which such an offering, solicitation, or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About Ability Inc.
Ability Inc. is the sole owner of Ability
Computer & Software Industries Ltd. (“ACSI”) and Ability
Security Systems Ltd. Headquartered in Tel Aviv, Israel, ACSI was
founded in 1994. ACSI provides advanced interception, geolocation
and cyber intelligence tools used by security and intelligence
agencies, military forces, law enforcement and homeland security
agencies worldwide. ACSI has sold to governments and government
agencies in over 50 countries. ACSI offers a broad range of lawful
interception, decryption, cyber and geolocation solutions for
cellular and satellite communication, including ULIN, or Ultimate
Interceptor, which to our knowledge, is the first-to-market SaaS
strategic interception system with voice and geolocation
capabilities without geographic limitation. State-of-the-art
technology underpins ACSI’s scalable offerings, which can be
tactical-and-portable, or strategic-and-fixed, depending on its
customers’ needs. Additional information regarding ACSI may be
found at http://www.interceptors.com.
Caution Regarding Forward-Looking
Statements
Any statements contained in this press release
that do not describe historical facts may constitute
forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements include, among other thing, statements regarding the
acquisition. Forward-looking statements should not be read as a
guarantee of future performance or results and may not be accurate
indications of when such performance or results will be achieved.
Forward-looking statements are based on information that the
Company has when those statements are made or management’s good
faith belief as of that time with respect to future events, and are
subject to risks and uncertainties that could cause actual
performance or results to differ materially from those expressed in
or suggested by the forward-looking statements. The Company assumes
no obligation to publicly update or revise its forward-looking
statements as a result of new information, future events or
otherwise.
Contact at Ability:
Avi Levin
CFO
+972-3-6879777
avi@ability.co.il
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