Eltek Announces Pricing of Public Offering of Ordinary Shares.

Rhea-AI Summary

Eltek Ltd. announces the pricing of an underwritten public offering of 625,000 ordinary shares at $16.00 per share, generating $10,000,000 in gross proceeds. The Company plans to utilize the net proceeds for expanding production capabilities and general corporate purposes.

Positive

• Eltek Ltd. successfully prices an underwritten public offering of 625,000 ordinary shares at $16.00 per share.
• The offering results in gross proceeds of $10,000,000 before deducting underwriting discounts and offering expenses.
• ThinkEquity is the sole book-running manager for the offering.
• The Company intends to use the net proceeds for expanding production capabilities and general corporate purposes.
• The securities are offered and sold under a shelf registration statement on Form F-3 filed with the SEC.
• Interested parties should review the prospectus supplement and accompanying documents before investing in the offering.

Negative

• None.

Insights

Financial Analyst

Eltek Ltd.'s announcement of a public offering is a strategic move to raise capital, indicative of a company's growth trajectory and a common practice among public companies seeking to expand operations. The pricing of shares at $16.00 can be seen as a reflection of the company's perceived value and market conditions. Investors typically look at the pricing in relation to the current stock performance to assess the attractiveness of the offering. The gross proceeds of $10 million, before fees and expenses, suggest a significant infusion of capital that could potentially enhance Eltek's financial position.

From a financial perspective, the use of net proceeds for expanding production capabilities indicates an aggressive growth strategy. This could lead to increased revenues in the long-term, although it may also involve risks associated with capital expenditure. The allocation towards general corporate purposes, including working capital, suggests a focus on maintaining liquidity and operational efficiency. Investors should consider how these strategic investments align with the company's overall business objectives and the potential impact on future earnings.

Market Research Analyst

The printed circuit board industry is highly competitive and technology-driven. Eltek's decision to allocate funds from the public offering to expand production capabilities signifies an attempt to stay ahead in the market by adopting advanced manufacturing techniques. This could potentially improve their competitive edge by enabling them to meet increasing customer demands for complex and high-quality printed circuit boards.

However, market analysts would recommend monitoring industry trends to evaluate whether Eltek's expansion aligns with market demand. It's important to assess if there's a growing need for the technologically advanced solutions that Eltek provides, as this would validate the company's strategic direction. Moreover, the choice of ThinkEquity as the sole book-running manager could be seen as a strategic partnership, leveraging their expertise to ensure the success of the offering.

Legal Expert

Eltek's use of a shelf registration statement for this offering is a common legal mechanism that allows issuers to register a new issue of securities without having to go through the SEC review process each time. It's crucial for investors to understand that this process still involves thorough documentation, including a base prospectus and additional filings. The effectiveness of the shelf registration since August 5, 2022, indicates that Eltek had planned for potential capital raising activities well in advance.

The legal framework requires detailed disclosure of the use of proceeds, risks and other material information, which is beneficial for investors conducting due diligence. The prospectus filed with the SEC will contain this information and should be reviewed carefully to understand the legal implications of the offering, including shareholder dilution and the impact on share price.

PETACH TIKVA, Israel, Feb. 12, 2024 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today the pricing of an underwritten public offering of 625,000 ordinary shares at  a public offering price of $16.00 per share, for gross proceeds of $10,000,000, before deducting underwriting discounts and offering expenses. All of the ordinary shares are being sold by the Company. The offering is expected to close on February 15, 2024, subject to satisfaction of customary closing conditions. 

ThinkEquity is acting as sole book-running manager for the offering.

The Company intends to use the net proceeds from this offering to strategically invest in the expansion of its production capabilities and for general corporate purposes including working capital.

The securities are being offered and sold pursuant to a shelf registration statement on Form F-3 (File No. 333-266346), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the "SEC") on July 27, 2022 and declared effective on August 5, 2022. The offering will be made only by means of a written prospectus. A prospectus supplement and accompanying prospectus describing the terms of the offering will be filed with the SEC on its website at www.sec.gov. Copies of the prospectus supplement and the accompanying prospectus relating to the offering may also be obtained from the offices of ThinkEquity, 17 State Street, 41st Floor, New York, New York 10004.

Before investing in this offering, interested parties should read in their entirety the prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

About Eltek

Eltek – "Innovation Across the Board", is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs) and is an Israeli leading company in this industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high-quality PCBs, HDI, multilayered and flex-rigid boards for the high-end market. Eltek is ITAR compliant and has AS-9100 and NADCAP electronics certifications. Its customers include leading companies in the defense, aerospace and medical industries in Israel, the United States, Europe and Asia.

Eltek was founded in 1970. The Company's headquarters, R&D, production and marketing center are located in Israel. Eltek also operates through its subsidiary in North America and by agents and distributors in Europe, India, South Africa and South America.

For more information, visit Eltek's web site at www.nisteceltek.com 

Forward Looking Statement

Some of the statements included in this press release may be forward-looking statements that involve a number of risks and uncertainties including, but not limited to expected results in future quarters, the impact of the Coronavirus on the economy and our operations, the impact of the war and hostilities between Israel and Hamas and Israel and Hezbollah, risks in product and technology development and rapid technological change, product demand, the impact of competitive products and pricing, market acceptance, the sales cycle, changing economic conditions and other risk factors detailed in the Company's Annual Report on Form 20-F and other filings with the United States Securities and Exchange Commission. Any forward-looking statements set forth in this press release speak only as of the date of this press release. The information found on our website is not incorporated by reference into this press release and is included for reference purposes only.

Investor Contact

Ron Freund
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023

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SOURCE Eltek Ltd.

FAQ

What is the offering price of Eltek Ltd.'s underwritten public offering?

The underwritten public offering of Eltek Ltd. is priced at $16.00 per share.

How many ordinary shares are included in Eltek Ltd.'s public offering?

Eltek Ltd.'s public offering consists of 625,000 ordinary shares.

What are the gross proceeds generated from Eltek Ltd.'s public offering?

Eltek Ltd.'s public offering results in gross proceeds of $10,000,000.

Who is the sole book-running manager for Eltek Ltd.'s offering?

ThinkEquity is the sole book-running manager for Eltek Ltd.'s offering.

How does Eltek Ltd. plan to utilize the net proceeds from the public offering?

Eltek Ltd. intends to use the net proceeds for expanding production capabilities and general corporate purposes.

Under which registration statement are the securities being offered and sold by Eltek Ltd.?

The securities are being offered and sold under a shelf registration statement on Form F-3 filed with the SEC.

Where can interested parties obtain more information about Eltek Ltd.'s public offering?

Interested parties can find more information on the SEC's website or at ThinkEquity's offices in New York.