Ellomay Capital Ltd. Announces a Proposed Private Placement of Ordinary Shares to Israeli Institutional and Classified Investors for Approximately NIS 31.7 Million

Rhea-AI Summary

Ellomay Capital Ltd. (NYSE American: ELLO) has announced a private placement of 450,000 ordinary shares to Israeli institutional and classified investors, raising approximately NIS 31.7 million (around $20.4 per share). This follows the Board of Directors' approval, with the share price determined on July 7, 2020. The company intends to utilize the net proceeds for general corporate purposes. Closing of the placement is pending regulatory approvals expected in July 2020. Ellomay specializes in renewable energy projects across Israel and Europe.

Positive

• Successful commitment from Israeli institutional investors for 450,000 ordinary shares.
• Gross proceeds expected from the offering are approximately NIS 31.7 million.
• Share price set at NIS 70.5, slightly above recent trading prices.

Negative

• Closing of the Private Placement is subject to regulatory approvals, introducing uncertainty.
• Private Placement limited to Israeli investors may restrict broader capital access.

TEL AVIV, Israel, July 9, 2020 /PRNewswire/ -- Ellomay Capital Ltd. (NYSE American: ELLO) (TASE: ELLO) ("Ellomay" or the "Company"), a renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel, today announced that it has received and accepted, following the approval of the Company's Board of Directors, commitments from several Israeli institutional and classified investors to buy 450,000 ordinary shares of the Company in a private placement (the "Private Placement").

The price per share in the Private Placement was set at NIS 70.5 (approximately $20.4) and the gross proceeds to the Company are expected to be approximately NIS 31.7 million. The price per share was determined on July 7, 2020. The closing price per share on July 6, 2020 and July 7, 2020 on the Tel Aviv Stock Exchange was NIS 69.52 and NIS 72.04, respectively. The Company intends to use the net proceeds from this offering for general corporate purposes.

The closing of the Private Placement is subject to the receipt of regulatory approvals, which are expected to be obtained during July 2020.

The Private Placement described in this report, if made, will be made in Israel only and not to U.S. persons. The ordinary shares, if sold, will not be registered under the U.S. Securities Act of 1933, as amended, and will not be offered or sold in the United States without registration or applicable exemption from the registration requirements according to the U.S. Securities Act of 1933. Nothing in this press release constitutes a public offering or an invitation to purchase the Company's securities.

About Ellomay Capital Ltd.

Ellomay is an Israeli based company whose shares are registered with the NYSE American and with the Tel Aviv Stock Exchange under the trading symbol "ELLO". Since 2009, Ellomay Capital focuses its business in the renewable energy and power sectors in Europe and Israel.

To date, Ellomay has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in Israel, Italy and Spain, including:

• Approximately 7.9MW of photovoltaic power plants in Spain and a photovoltaic power plant of approximately 9 MW in Israel;
• 9.375% indirect interest in Dorad Energy Ltd., which owns and operates one of Israel's largest private power plants with production capacity of approximately 860MW, representing about 6%-8% of Israel's total current electricity consumption;
• 51% of Talasol, which is involved in a project to construct a photovoltaic plant with a peak capacity of 300MW in the municipality of Talaván, Cáceres, Spain;
• 100% of Groen Gas Goor B.V. and of Groen Gas Oude-Tonge B.V., project companies developing anaerobic digestion plants with a green gas production capacity of approximately 375 Nm3/h, in Goor, the Netherlands and 475 Nm3/h, in Oude Tonge, the Netherlands, respectively;
• 75% of Ellomay Pumped Storage (2014) Ltd. (including 6.67% that are held by a trustee in trust for us and other parties), which is involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel.

Ellomay Capital is controlled by Mr. Shlomo Nehama, Mr. Hemi Raphael and Mr. Ran Fridrich. Mr. Nehama is one of Israel's prominent businessmen and the former Chairman of Israel's leading bank, Bank Hapohalim, and Messrs. Raphael and Fridrich both have vast experience in financial and industrial businesses. These controlling shareholders, along with Ellomay's dedicated professional management, accumulated extensive experience in recognizing suitable business opportunities worldwide. Ellomay believes the expertise of Ellomay's controlling shareholders and management enables the Company to access the capital markets, as well as assemble global institutional investors and other potential partners. As a result, we believe Ellomay is capable of considering significant and complex transactions, beyond its immediate financial resources.

For more information about Ellomay, visit http://www.ellomay.com.

Information Relating to Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties, including statements that are based on the current expectations and assumptions of the Company's management. All statements, other than statements of historical facts, included in this press release regarding the Company's plans and objectives, expectations and assumptions of management are forward-looking statements.  The use of certain words, including the words "estimate," "project," "intend," "expect," "believe" and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  The Company may not actually achieve the plans, intentions or expectations disclosed in the forward-looking statements and you should not place undue reliance on the Company's forward-looking statements. Various important factors could cause actual results or events to differ materially from those that may be expressed or implied by the Company's forward-looking statements, including the impact of the COVID-19 pandemic on the Company's operations and projects, including in connection with steps taken by authorities in countries in which the Company operates, regulatory changes, changes in the supply and prices of resources required for the operation of the Company's facilities (such as waste and natural gas) and in the price of oil, changes in demand and technical and other disruptions in the operations or construction of the power plants owned by the Company. These and other risks and uncertainties associated with the Company's business are described in greater detail in the filings the Company makes from time to time with Securities and Exchange Commission, including its Annual Report on Form 20-F. The forward-looking statements are made as of this date and the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Kalia Weintraub
CFO
Tel: +972(3)797-1111
Email: kaliaw@ellomay.com

 

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SOURCE Ellomay Capital Ltd

FAQ

What is the purpose of the private placement announced by ELLO?

The private placement aims to raise approximately NIS 31.7 million for general corporate purposes.

How many shares is Ellomay Capital offering in the private placement?

Ellomay Capital is offering 450,000 ordinary shares in the private placement.

What is the share price set for the private placement of ELLO?

The share price for the private placement is set at NIS 70.5 (approximately $20.4).

When was the share price for the private placement determined?

The share price was determined on July 7, 2020.

What are the expected proceeds from the private placement for ELLO?

The gross proceeds from the private placement are expected to be approximately NIS 31.7 million.