1 July 2013

TowerJazz raises $22m in rights offering; major shareholder to invest a further $10m

Specialty foundry TowerJazz (which has fabrication plants at Tower Semiconductor Ltd in Migdal Haemek, Israel, and at its subsidiaries Jazz Semiconductor Inc in Newport Beach, CA, USA and TowerJazz Japan Ltd) has completed its rights offering to eligible security holders (announced at the end of May).

The firm received gross proceeds of $22m out of a maximum possible amount of about $24m offered, representing a 90% participation rate. Major shareholder Israel Corporation Ltd exercised its rights in full (representing an investment of $7m) and has further committed to exercise all of its Series 8 warrants on or before 22 July, for an additional investment of about $10m.

“In the past weeks, we had opportunities to meet with multiple investors and discuss company strategies, tactics and performance,” says CEO Russell Ellwanger. “There was an overall understanding, appreciation and belief in the direction the company is taking and of the strong traction within the strategic initiatives that the company has announced over the preceding years… We appreciate this strong vote of confidence by our stakeholders,” he adds. “We will continue to focus on analog technology leadership, with strategic steps driving deeper and broader offerings within the industrial mega trends of (1) green everything, (2) wireless everything, and (3) integrated smart systems.”

A total of about 1.1 million rights were exercised in the rights offering. Each right is exercisable for four ordinary shares, six short-term Series 8 warrants exercisable at $5.00 per share until 22 July 2013, and five Series 9 warrants exercisable at $7.33 per share until 27 June 2017. Both the Series 8 warrants and the Series 9 warrants will be listed for trade on the Tel Aviv Stock Exchange, and its CUSIP numbers are M87915 407 and M87915 415, respectively.

Tags: TowerJazz SiGe

Visit: www.towerjazz.com