Azimuth to Allocate 20% of Shares for $2m

A week and a half after Azimuth Technologies saw its share price shoot up by 101 percent in one day's trading, the reason for the company's meteoric rise transpired over the weekend when it announced it had signed a deal with two foreign investors to allocate 20 percent of the company's shares for $2 million.

The investors will pay 65 agorot per share, some 20 percent under the military technology company's current market price.

The investment will be made at a company valuation of $10 million before the money, reflecting the company's current valuation. The two will each appoint a director on their behalf.

Azimuth's equity will increase from $3.5 million to $5.5 million as a result of the investment. The company is expected to release a report detailing the deal within the next few days.

The controlling shareholder in the company, which develops and manufactures navigation and target acquisition systems, is the company's chairman, Shlomo Reisman, with a 74 percent stake.

In 2003, Azimuth lost NIS 8 million on revenues of NIS 49 million, down from a profit of NIS 3 million of turnover of NIS 62 million in the previous year.

Azimuth Technologies floated on the Tel Aviv Stock Exchange in July 2000, a few months before the start of the intifada, raising NIS 33 million at a value of NIS 108 million