RiT Technologies Strengthens its Capital Structure Through Debt-to-Equity
Stins Coman, RiT's Controlling Shareholder, to Convert $4.5M of the
Outstanding Loan Amount into Ordinary Shares
TEL AVIV, Israel, March 14, 2013
TEL AVIV, Israel, March 14, 2013 /PRNewswire/ --
RiT Technologies (NASDAQ: RITT) today announced that it has signed a private
Share Purchase Agreement with STINS COMAN Inc., ("STINS COMAN"), its principal
shareholder, under which it will convert an outstanding loan in the amount of
approximately $4.5 million into 1,021,166 of the Company's ordinary shares at
an average price of $4.44 per share.
This transaction is an addition to the previous conversions completed from May
2010 - December 2012, and is being executed under the terms stipulated in the
Loan Agreement between RiT and STINS COMAN dated June 11, 2009, as amended.
The completion of this transaction is subject to customary conditions, and the
issuance of shares is expected to take place on March 29, 2013. Upon
completion, STINS COMAN's holding (including through affiliated company) will
rise to approximately 87% of the Company's voting power.
Commenting on the news, Dr. Vadim Leiderman, RiT's President and CEO, said,
"We are completing this transaction as an initial step in correcting Nasdaq's
Shareholders' Equity requirement, as we reported earlier today. This
transaction demonstrates, once again, STINS COMAN's confidence in our
prospects. We believe that the launch of our two new breakthrough solutions -
Beamcaster™ and PatchView™+ will bring the Company to a whole new era of rapid
growth and profitability."
About RiT Technologies
RiT is a leading provider of intelligent infrastructure management (IIM)
solutions and a developer of a new revolutionary indoor optical wireless
technology solution. Our IIM products provide and enhance security and network
utilization for data centers, communication rooms and work space environments.
They help companies plan and provision, monitor and troubleshoot their
communications networks, maximizing utilization, reliability and physical
security while minimizing unplanned downtime. RiT's IIM solutions are deployed
around the world, in a broad range of organizations, including: data centers,
enterprises, corporations, government agencies, financial institutions,
airport authorities, healthcare institutions, and education institutions.
RiT's indoor optical wireless technology solution will help our clients
streamline deployment, reduce infrastructure design, installation and
maintenance complexity and enhance security in a cost effective way. RiT's
shares are traded on the Nasdaq exchange under the symbol RITT.
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 the expansion of our sales and marketing efforts
and the development of exciting new product lines in 2013 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.
Elan Yaish, CFO
SOURCE RiT Technologies Ltd
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