Mazor Surgical Technologies Ltd. (TASE:MZOR) has signed a $15 million standby equity purchase agreement (SEPA) with Yorkville Advisors LLC unit YA Global Investments LP. Mazor will allot shares to Jersey City-based Yorkville as it draws on the equity line at its discretion.
The investments will be made on the basis of periodic requests by Mazor at its discretion, with each investment not exceeding $750,000. Mazor is not obliged to exploit the entire credit line or any part thereof. Mazor has the right to set a minimum share price for an investment, in which case the investment will be reduced by 10% that the share price is less than the minimum price.
Mazor also limits Yorkville's stake in the company to 4.99%.
Mazor CEO Ori Hadomi said, "I consider the equity line to be an insurance policy. Every company needs an insurance policy, through revenue or investment, to ensure it enough money to repay its debts and for its regular operations. I looked at what happened to foreign companies that used this instrument and saw that the markets responded favorably to them. Even though there is no obligation to draw on this money, we are pleased to have the option."
Mazor's share rose 1% today to NIS 8.67, giving a market cap of NIS 124 million.
Published by Globes [online], Israel business news - www.globes-online.com - on September 6, 2009
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