The deal values EZ Energy USA at $19 million, before money.
EZ Energy Ltd. (TASE:EZ) subsidiary EZ Energy USA Inc. has signed a non-binding agreement with foreign investors for a $19 million investment at a company value of $19 million before money. The company did not disclose the investors' names.
The investors will provide a 36-month loan convertible into EZ Energy USA shares at a company value of $19 million. The loan will bear interest of six-month LIBOR + 2.25%. The loan will be repaid in full in a single payment at the end of the period, unless the investor converts the loan to shares beforehand. Early repayment is possible.
The foreign investors will appoint two directors to EZ Energy USA's board, will have veto rights on any stock transfers by the company, and will guarantee the company's liabilities.
Published by Globes [online], Israel business news - www.globes-online.com - on September 8, 2008
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