Herzliya, Israel – 27 January 2004 – VCON (ISIN Code: IL 00 108 30540), a worldwide leader in visual communications solutions, today announced the signing of an agreement for a private placement of its shares for up to US$10 million by a group of venture capital funds comprising Index Ventures, Pitango, Genesis, Catalyst and SFK. On the closing of the transaction, the investors will pay, in aggregate, up to US$10 million (€ 7.9 million) in cash to VCON in consideration for the issuance of 12,683,402 ordinary shares of VCON, reflecting a purchase price of approximately US$0.79 (€ 0.63) per share. This price represents the lowest average price per share of VCON's shares traded on the Nouveau Marché over a period of ten consecutive trading days out of the twenty trading days preceding the signing of the agreement. The purchase price per share on closing may be subject to downwards adjustment in the event that the lowest average closing price per share of VCON's shares during the ten consecutive trading days out of the twenty days preceding closing is lower than the aforementioned price per share. (All US$ amounts in this press release are, for convenience, converted to € amounts based on an exchange rate of 1 € = 1.26 US$). The transaction has received the approval of both the audit committee and the board of directors of the Company. The closing of the transaction is subject to the satisfactory completion of the investors’ due diligence process, the consent of VCON’s principal banks and the receipt of governmental approvals from the Office of the Chief Scientist and the Investment Center of the State of Israel. For the purposes of listing the shares to be issued to the investors on the Nouveau Marché, a prospectus describing the transaction will need to be submitted to the Autorité de Marchés Financiers for approval. Yair Shamir, Chairman and CEO of VCON, stated, “This significant injection of cash into the Company is an important milestone. Our recent technology acquisitions, announced in 2003, were important building blocks in our strategy, and going into 2004, supported by a worldwide economic recovery, we believe that this addition to our cash provides VCON with financial strength and solid balance sheets and positions us well to capitalize on the market trends for meeting our goals.” |
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About VCON
VCON develops and manufactures visual communications solutions that bridge distances between people. Our award-winning technology ensures the highest audio and video performance over your enterprise IP and ISDN networks. VCON’s meeting and collaboration solutions include desktop and group videoconferencing products, along with an advanced IP video PBX that operates as a management, administration, and billing tool. The company markets its products and services through a network of reseller partners, OEMs and value-added resellers worldwide. Headquartered in Israel, VCON holds subsidiaries in six continents and is publicly traded on Le Nouveau Marché (ISIN Code: IL 00 108 30540).
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