The new Russian controlling shareholder of RIT Technologies Ltd. (Nasdaq: RITT), Stins Coman Inc., has extended the company an unsecured $4 million owners' loan. RIT's board approved the short-term loan on Friday. Moscow-based Stins Coman has been RIT's Russian distributor since 2004. RIT develops physical network infrastructure control and management solutions.
Under the loan terms, RIT can call up the loan through the end of 2008, but no more than $2 million at any one call, and at intervals of at least 30 days between each call. RiT intends to call $2 million in the next few weeks. The outstanding principal amount will accrue interest 2.47% a year, and RIT will repay the loan, plus interest, in a single payment 12 months after receiving the money.
Stins Coman acquired 7% of RIT in early June after making an offer to purchase at least 734,000 shares at $0.86 per share. The successful offer to purchase gave Stins Coman just over one million RIT shares out of the company's 14.7 million outstanding shares. A week later RIT chairman Yehuda Zisapel, Zohar Zisapel, and director Dr. Meir Barel sold 5.1 million shares at $0.86 per share to Stins Coman, amounting to 34.9% of the company, for $4.4 million.
Altogether, Stims Coman bought 6.5 million shares, or 41.8% of the company.
Stins Coman president Sergey Anisimov has been appointed chairman of RIT. Yehuda Zisapel and Meir Barel resigned from the RIT's board, and were replaced by Sergey Anisimov and Boris Granovsky. RIT VP sales Avi Kovarsky was appointed as CEO, replacing Doron Zinger.
RIT rose 1.5% on Friday to $0.66. The share has risen 65% since the beginning of 2008, to a market cap of $9.9 million
Published by Globes [online], Israel business news - www.globes-online.com - on June 15, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008