20th Feb 2014 09:58
LONDON (Alliance News) - Technology group Emblaze Ltd said Thursday that Israel 18 B.V has entered into an agreement with Fortissimo Capital Fund, to exercise Fortissimo's call option for a share in Emblaze.
Fortissimo has a 8.08% interest in Emblaze. Israel 18 has paid USD5 million for 3.3 million shares in Emblaze, and will receive these shares shortly. It will acquire two further portions of 2.8 million shares for USD4.1 million on March 31 and April 30 respectively.
Emblaze extended the period in which the call option could be exercised.
As consideration for the extension period Emblaze granted Israel 18 will pay an additional USD250,000 sum with both instalments in March and April, and a further USD700,000 upon completing the purchase of Fortissimo's entire shareholding in Emblaze.
The deadline for the USD700,000 payment is December 31 2014, even if it has not completed the purchase of Fortissimo's shareholding.
In August 2013, BGI Investments Ltd entered into agreements to buy 20.01% of Emblaze's share capital. Chabad 770 B.V, now called Israel 18, is owned by Alexander Granovski. Granovski is the controlling shareholder of ZBI Ltd, which is the controlling shareholder of BGI.
In December BGI made a cash offer to Emblaze shareholders for a 5% interest in the company. At that time the company said its board would make no recommendation for or against the offer due to the personal interests of its directors. Emblaze directors Avraham Wolff, Yossi Schneorson, Amnon Ben-Shay, and Hanoch Winderboim all are directors of BGI.
The deadline for the offer was extended twice in January due to technical issues caused by the Christmas period, and Ben-Shay stepped down from the board due to other commitments preventing him from fulfilling the requirements of his position.
BGI Investments now has a 25.02% interest in Emblaze.
Shares in Emblaze last traded flat at 39.75 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares: