Nexus Telocation Systems Ltd., a provider of Location Based Services (LBS), has signed with DBSI Investment Ltd. and certain other purchasers a Share Purchase Agreement (SPA) for an investment in the company of approximately $2.5 million. The closing is subject to the completion of certain requirements and conditions.
In connection with the SPA, Nexus has also concluded agreements to restructure its approximately four million dollar debts to the bank mainly by converting a short-term facility into long-term loans, its agreement with AMS Electronics Ltd., its major manufacturer, including a conversion of approximately $700 thousand convertible debenture to equity, and other debts and liabilities.
According to the SPA, four new directors will be nominated to Nexus' board of directors after the closing, to be appointed by DBSI. Shlomo Sadowsky, President and CEO of Nexus said: "The anticipated final conclusion of the transaction with DBSI, the recently completed sale of NexusData upon which more than eight million dollars net liabilities were taken off our balance sheet and the restructuring of the major facilities and debts will definitely strengthen our financial position, both from the capital structure stand point and cash flow wise."
Nexus Telocation Systems Ltd. develops manufactures and markets low energy and cost effective wireless communications and location based information systems through the application of digital spread spectrum technologies. Nexus Telocation security services business is performed through business partners in Israel, Venezuela, Argentina, and Russia. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
