Stins Coman Grants 12 Month Extension to RiT Technologies' Convertible Loan Agreement
Poster: SySAdmin
Posted on April 18, 2011 at 7:07:01 AM
Stins Coman Grants 12 Month Extension to RiT Technologies' Convertible Loan Agreement
TEL AVIV, Israel, April 18, 2011/PRNewswire-FirstCall/ -- RiT Technologies (NASDAQ: RITT) and Stins Coman Inc., RiT's
controlling shareholder, today announced that they have extended the term of
their convertible loan agreement by an additional 12 months until June 11,
2012. During this extended period, RiT may call for any additional portion of
the loan.
The terms of the loan remain unchanged from the original
agreement signed in June 2009.
The term of the original loan was previously extended by 12
months in February, 2010, and is now being extended for an additional 12
months. According to the original loan agreement, Stins Coman has provided
RiT with a credit line of up to $10 million, with the outstanding principal
accruing at an annual interest rate of 2.47%. All amounts drawn, together
with all accrued interest, are payable over a period of 36 months following
the receipt of each loan tranche. The original agreement also granted Stins
Coman the right, at any time, to convert the outstanding principal amount and
accrued interest, in whole or in part, into ordinary shares of RiT, at a
per-share conversion price equal to the market price of RiT shares on NASDAQ
on the day RiT receives the funds plus a 10% premium. All of these original
provisions remain unchanged in the extended agreement.
As of April 18 2011, RiT has drawn approximately $5.8 million
of the loan.
Commenting on the news, Mr. Sergey Anisimov, Chairman of RiT
and President of Stins Coman, said, "This extension demonstrates Stins
Coman's confidence in RiT's high potential, its importance as a member of our
Group, and the long-term strategic plans that we have for the Company."
"Stins Coman's guidance and strong financial support are
essential for the success of the aggressive growth strategy that we have
adopted," commented Eran Ayzik, RiT's President and CEO. "Thanks to this
support, we continue to increase our sales and marketing efforts, create new
partnerships and expand our product portfolio. We are confident that we are
on the right track for achieving renewed growth and profitability."
The extension of the loan term has been approved by RiT's
Audit Committee and Board of Directors. For additional details about the
transaction, shareholders are invited to read the Company's related 6-K
filing that RiT has submitted to the Securities and Exchange Commission
(SEC).
About RiT Technologies
RiT is a leading provider of intelligent solutions for
infrastructure management, asset management, environment and security, and
network utilization. RiT Enterprise solutions address datacenters,
communication rooms and workspace environments, ensuring maximum utilization,
reliability, decreased downtime, physical security, automated deployment,
asset tracking, and troubleshooting. RiT Carrier solutions provide carriers
with the full array of network mapping, testing and bandwidth qualification
capabilities needed for access network installation and service provisioning.
RiT's field-tested solutions are delivering value in thousands of
installations for top-tier enterprises and operators throughout the world.
For more information, please visit our website:
http://www.rittech.com
Safe Harbor Statement
In this press release, all statements that are not purely
about historical facts, including, but not limited to, those in which we use
the words "believe," "anticipate," "expect," "plan," "intend," "estimate",
"forecast", "target", "could" and similar expressions, are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. For example, when we discuss a field trial which could lead to a
multi-million dollar Carrier deal, we are using a forward looking statement.
While these forward-looking statements represent our current judgment of what
may happen in the future, actual results may differ materially from the
results expressed or implied by these statements due to numerous important
factors, including, but not limited to, those described under the heading
"Risk Factors" in our most recent Annual Report filed with the Securities and
Exchange Commission (SEC) on Form 20-F, which may be revised or supplemented
in subsequent reports filed with the SEC. These factors include, but are not
limited to, the following: our ability to raise additional financing, if
required; the continued development of market trends in directions that
benefit our sales; our ability to maintain and grow our revenues; our
dependence upon independent distributors, representatives and strategic
partners; our ability to develop new products and enhance our existing
products; the availability of third-party components used in our products;
the economic condition of our customers; the impact of government regulation;
and the economic and political situation in Israel. We are under no
obligation, and expressly disclaim any obligation, to update the
forward-looking statements in this press release, whether as a result of new
information, future events or otherwise.
COMPANY CONTACT:
Moti Antebi
CFO
+972-3-766-4249
motia@rit.co.il
Source: RiT Technologies Ltd
.
TEL AVIV, Israel, April 18, 2011/PRNewswire-FirstCall/ -- RiT Technologies (NASDAQ: RITT) and Stins Coman Inc., RiT's
controlling shareholder, today announced that they have extended the term of
their convertible loan agreement by an additional 12 months until June 11,
2012. During this extended period, RiT may call for any additional portion of
the loan.
The terms of the loan remain unchanged from the original
agreement signed in June 2009.
The term of the original loan was previously extended by 12
months in February, 2010, and is now being extended for an additional 12
months. According to the original loan agreement, Stins Coman has provided
RiT with a credit line of up to $10 million, with the outstanding principal
accruing at an annual interest rate of 2.47%. All amounts drawn, together
with all accrued interest, are payable over a period of 36 months following
the receipt of each loan tranche. The original agreement also granted Stins
Coman the right, at any time, to convert the outstanding principal amount and
accrued interest, in whole or in part, into ordinary shares of RiT, at a
per-share conversion price equal to the market price of RiT shares on NASDAQ
on the day RiT receives the funds plus a 10% premium. All of these original
provisions remain unchanged in the extended agreement.
As of April 18 2011, RiT has drawn approximately $5.8 million
of the loan.
Commenting on the news, Mr. Sergey Anisimov, Chairman of RiT
and President of Stins Coman, said, "This extension demonstrates Stins
Coman's confidence in RiT's high potential, its importance as a member of our
Group, and the long-term strategic plans that we have for the Company."
"Stins Coman's guidance and strong financial support are
essential for the success of the aggressive growth strategy that we have
adopted," commented Eran Ayzik, RiT's President and CEO. "Thanks to this
support, we continue to increase our sales and marketing efforts, create new
partnerships and expand our product portfolio. We are confident that we are
on the right track for achieving renewed growth and profitability."
The extension of the loan term has been approved by RiT's
Audit Committee and Board of Directors. For additional details about the
transaction, shareholders are invited to read the Company's related 6-K
filing that RiT has submitted to the Securities and Exchange Commission
(SEC).
About RiT Technologies
RiT is a leading provider of intelligent solutions for
infrastructure management, asset management, environment and security, and
network utilization. RiT Enterprise solutions address datacenters,
communication rooms and workspace environments, ensuring maximum utilization,
reliability, decreased downtime, physical security, automated deployment,
asset tracking, and troubleshooting. RiT Carrier solutions provide carriers
with the full array of network mapping, testing and bandwidth qualification
capabilities needed for access network installation and service provisioning.
RiT's field-tested solutions are delivering value in thousands of
installations for top-tier enterprises and operators throughout the world.
For more information, please visit our website:
http://www.rittech.com
Safe Harbor Statement
In this press release, all statements that are not purely
about historical facts, including, but not limited to, those in which we use
the words "believe," "anticipate," "expect," "plan," "intend," "estimate",
"forecast", "target", "could" and similar expressions, are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. For example, when we discuss a field trial which could lead to a
multi-million dollar Carrier deal, we are using a forward looking statement.
While these forward-looking statements represent our current judgment of what
may happen in the future, actual results may differ materially from the
results expressed or implied by these statements due to numerous important
factors, including, but not limited to, those described under the heading
"Risk Factors" in our most recent Annual Report filed with the Securities and
Exchange Commission (SEC) on Form 20-F, which may be revised or supplemented
in subsequent reports filed with the SEC. These factors include, but are not
limited to, the following: our ability to raise additional financing, if
required; the continued development of market trends in directions that
benefit our sales; our ability to maintain and grow our revenues; our
dependence upon independent distributors, representatives and strategic
partners; our ability to develop new products and enhance our existing
products; the availability of third-party components used in our products;
the economic condition of our customers; the impact of government regulation;
and the economic and political situation in Israel. We are under no
obligation, and expressly disclaim any obligation, to update the
forward-looking statements in this press release, whether as a result of new
information, future events or otherwise.
COMPANY CONTACT:
Moti Antebi
CFO
+972-3-766-4249
motia@rit.co.il
Source: RiT Technologies Ltd
.