TAT Technologies completed Private Placement to Israeli Institutional and Accredited Investors

Rhea-AI Summary

TAT Technologies Ltd. (NASDAQ: TATT) completed a private placement of 1,158,600 Ordinary Shares to Israeli institutional and accredited investors, resulting in net proceeds of approximately NIS 36.2 million (or approximately $9.9 million). The private placement was made in Israel only and not to U.S. persons, and the Shares are subject to certain transfer restrictions.

Insights

Financial Analyst

The completion of TAT Technologies Ltd.'s private placement to Israeli institutional and accredited investors represents a strategic move to bolster its capital structure. The infusion of approximately $9.9 million in net proceeds after deducting offering expenses is likely to enhance the company's financial flexibility. This capital may be allocated towards accelerating growth initiatives, deleveraging the balance sheet, or pursuing strategic acquisitions within the aerospace and defense sectors.

Analyzing the price of NIS 31.70 (approximately $8.69) per share, it is essential to compare this with the historical stock performance and current market valuation to assess the attractiveness of the offering. The capital raised through this placement could signal investor confidence in TAT's future prospects, potentially impacting its stock liquidity and long-term shareholder value.

It is noteworthy that the shares are subject to transfer restrictions and are not registered under the U.S. Securities Act. This limitation indicates a targeted investment approach and could imply a certain level of exclusivity and potential demand among Israeli investors. However, the lack of registration also means a narrower investor base and reduced liquidity for these shares in the global market.

Market Research Analyst

The aerospace and defense industries are highly competitive and capital-intensive. TAT Technologies Ltd.'s successful capital raise through a private placement is indicative of its strategic positioning within these sectors. The company's focus on commercial and military aerospace and ground defense indicates a diversified product and service offering that could benefit from global defense spending trends and commercial aviation growth post-pandemic.

Investors may view this capital raise as a positive indicator of TAT's growth trajectory and market opportunities. The company's ability to attract institutional and accredited investors suggests a level of confidence in its management and business model. However, the impact on the stock market will depend on how effectively TAT deploys the capital to generate returns, as well as broader market conditions affecting the aerospace and defense sectors.

Legal Expert

From a legal perspective, the private placement by TAT Technologies Ltd. adheres to the regulatory framework by utilizing Regulation S of the U.S. Securities Act of 1933. This exemption allows the company to raise capital from international markets without the extensive requirements of a public offering in the United States. The legal structuring of this deal ensures compliance with both Israeli and U.S. securities laws, which is crucial for minimizing the risk of regulatory penalties and maintaining corporate governance standards.

The transfer restrictions on the shares and the exclusion of U.S. persons as defined in Rule 902 highlight the legal complexities and the need for precise execution in cross-border securities transactions. It is important for potential investors to understand the implications of these restrictions on their investment liquidity and the legal recourse available in the event of any disputes arising from the transaction.

NETANYA, Israel, Dec. 28, 2023 /PRNewswire/ -- TAT Technologies Ltd. (NASDAQ: TATT) ("TAT" or the "Company"), a leading provider of products and services to the commercial and military aerospace and ground defense industries, reported the completion of its placement to Israeli institutional and accredited investors.

Explanatory Note:

On December 20, 2023, TAT Technologies Ltd., an Israeli company (the "Company"), completed the issuance and sale of 1,158,600 Ordinary Shares, par value NIS 0.90 per share, of the Company (the "Shares"), in a private placement to Israeli institutional and accredited investors (as defined under Israel's Securities Law, 5728-1968) (the "Investors"), for a purchase price of NIS 31.70 per Share (approximately $8.69 per Share*), resulting in net proceeds to the Company, after deducting offering expenses, of approximately NIS 36.2 million (or approximately $9.9 million*).

As previously announced by the Company on December 14, 2023, the private placement was made in Israel only and not to U.S. persons, as defined in Rule 902 of the U.S. Securities Act of 1933, as amended (the "Securities Act"), pursuant to a registration exemption afforded by Regulation S promulgated under the Securities Act, and the Shares are subject to certain transfer restrictions. The Shares will not be registered under the Securities Act and will not be offered or sold in the United States without registration or applicable exemption from the registration requirements according to the Securities Act.

This  press release does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities or a solicitation of any vote or approval nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation, sale, issuance or transfer would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

* Calculated based on the exchange rate of $1.00:NIS 3.648, as published by the Bank of Israel on December 20, 2023.

About TAT Technologies LTD

TAT Technologies Ltd. is a leading provider of services and products to the commercial and military aerospace and ground defense industries. TAT operates under four segments: (i) Original equipment manufacturing ("OEM") of heat transfer solutions and aviation accessories through its Gedera facility; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary. TAT controlling shareholders is the FIMI Private Equity Fund.

TAT's activities in the area of OEM of heat transfer solutions and aviation accessories primarily include the design, development and manufacture of (i) broad range of heat transfer solutions, such as pre-coolers heat exchangers and oil/fuel hydraulic heat exchangers, used in mechanical and electronic systems on board commercial, military and business aircraft; (ii) environmental control and power electronics cooling systems installed on board aircraft in and ground applications; and (iii) a variety of other mechanical aircraft accessories and systems such as pumps, valves, and turbine power units.

TAT's activities in the area of MRO Services for heat transfer components and OEM of heat transfer solutions primarily include the MRO of heat transfer components and to a lesser extent, the manufacturing of certain heat transfer solutions. TAT's Limco subsidiary operates an FAA-certified repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers and the military.

TAT's activities in the area of MRO services for aviation components include the MRO of APUs, landing gears and other aircraft components. TAT's Piedmont subsidiary operates an FAA-certified repair station, which provides aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military.

TAT's activities in the area of overhaul and coating of jet engine components includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps.

For more information of TAT Technologies Ltd., please visit our web-site:
www.tat-technologies.com

Contact:

Mr. Ehud Ben-Yair
Chief Financial Officer
ehudb@tat-technologies.com
Tel: 972-8-862-8503

Safe Harbor for Forward-Looking Statements 

This press release contains forward-looking statements which include, without limitation, statements regarding possible or assumed future operation results. These statements are hereby identified as "forward-looking statements" for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause our results to differ materially from management's current expectations. Actual results and performance can also be influenced by other risks that we face in running our operations including, but are not limited to, general business conditions in the airline industry, changes in demand for our services and products, the timing and amount or cancellation of orders, the price and continuity of supply of component parts used in our operations, the change of control that will occur on the sale by the receiver of the Company's shares held by our previously controlling stockholders, and other risks detailed from time to time in the Company's filings with the Securities Exchange Commission, including, its annual report on form 20-F and its periodic reports on form 6-K. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.

 

 

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SOURCE TAT Technologies Ltd

FAQ

What did TAT Technologies Ltd. (TATT) report?

TAT Technologies Ltd. (TATT) reported the completion of a private placement of 1,158,600 Ordinary Shares to Israeli institutional and accredited investors.

How much were the net proceeds from the private placement?

The net proceeds from the private placement were approximately NIS 36.2 million (or approximately $9.9 million).

To whom was the private placement made?

The private placement was made to Israeli institutional and accredited investors in Israel only and not to U.S. persons.

Are the shares subject to any restrictions?

Yes, the Shares are subject to certain transfer restrictions.

Were the shares offered or sold in the United States?

No, the Shares will not be offered or sold in the United States without registration or applicable exemption from the registration requirements according to the Securities Act.