RADA Electronic Industries Ltd. Announces Results of Extraordinary Meeting
On October 19, 2022, RADA Electronic Industries held an Extraordinary General Meeting where crucial decisions were made. The shareholders approved the merger with Leonardo DRS, making RADA a wholly-owned subsidiary of DRS. Additionally, the meeting validated the purchase of a seven-year insurance endorsement for directors and officers, the payment of a transaction bonus to the CFO, and the granting of retention awards to certain office holders. However, proposals for transaction bonuses to the CEO and Executive Chairman were rejected.
- Approval of merger with Leonardo DRS, strengthening strategic positioning.
- Secured seven-year liability insurance endorsement enhances executive protection.
- Transaction bonus to CFO indicates confidence in leadership.
- Rejection of transaction bonuses for CEO and Executive Chairman may indicate shareholder discontent.
NETANYA, Israel, Oct. 19, 2022 (GLOBE NEWSWIRE) -- On October 19, 2022, RADA Electronic Industries Ltd. (the “Company”) held an Extraordinary General Meeting of Shareholders (the “Meeting”) at the Company’s offices located at 7 Giborei Israel Street, Netanya, Israel.
At the Meeting, the following resolutions were adopted as follows:
- The approval and adoption of the Agreement and Plan of Merger, dated as of June 21, 2022 (the “Merger Agreement”), by and among Leonardo DRS, Inc. (“DRS”), RADA and Blackstart Ltd, a company organized under the laws of the State of Israel and a wholly owned subsidiary of DRS (“Merger Sub”); (ii) the merger contemplated by the merger agreement (the “Merger”), by which Merger Sub will be merged with and into RADA in accordance with the provisions of Sections 314-327 of the Companies Law 1999 of the State of Israel, with RADA as the surviving company of the Merger and thereby becoming a wholly owned subsidiary of DRS; and (iii) all other transactions contemplated by the Merger Agreement, all upon the terms and subject to the conditions set forth in the Merger Agreement.
- The approval of the purchase of a seven-year “tail” endorsement to RADA’s current directors’ and officers’ liability insurance policy.
- The approval of payment of a transaction bonus to RADA’s Chief Financial Officer.
- The approval of the grant of retention awards by DRS to certain office holders of RADA.
The following proposals were not approved:
- A payment of a transaction bonus to RADA’s Chief Executive Officer.
- A payment of a transaction bonus to the Executive Chairman of the RADA board of directors
About RADA
RADA is a global defense technology company focused on proprietary radar solutions and legacy avionics systems. The Company is a leader in mini-tactical radars, serving attractive, high-growth markets which include active military protection (SHORAD, C-RAM), counter-UAS missions, critical infrastructure protection and border surveillance.
| Company Contact: Avi Israel, CFO Tel: +972-76-538 6200 mrkt@rada.com www.rada.com | Investor Relations Contact: EK Global Investor Relations Ehud Helft Tel: 1 212 378 8040 rada@gkir.com |
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