IDAN SOFTWARE INDUSTRIES -- I.S.I. SIGNS PURCHASE AGREEMENTS
IDAN SOFTWARE INDUSTRIES -- I.S.I. SIGNS PURCHASE AGREEMENTS RAMAT GAN, Israel, April 2 /PRNewswire/ -- Idan Software Industries -- I.S.I. Ltd. (NASDAQ: IDANF) announced today that it has signed definitive purchase agreements with Formula Systems (1985) Ltd. and certain other shareholders of Elitech Industries (77) Ltd., pursuant to which Idan will issue an aggregate of 6,520,000 ordinary shares of Idan to Formula, Eliezer Jesselson, Dan Goldstein and Amiram Harel for a purchase price of US$.30 per share and US$1,956,000 in the aggregate, and Idan will grant to Formula options to purchase 10,000,000 shares of Idan at an exercise price of US$.30 per share and US$3,000,000 in the aggregate. Pursuant to the agreements, Idan will purchase 267,129 ordinary shares of Elitech for US$6.20 per share and US$1,656,200 in the aggregate, and Formula will grant to Idan options to purchase an additional 483,871 shares of Elitech at an exercise price of US$6.20 per share and US$3,000,000 in the aggregate. The options granted to Idan and Formula may be exercised at any time until June 30, 1993. As a result of these transactions, Formula and Jesselson, Goldstein and Harel will own in the aggregate 50.64 percent of Idan's ordinary shares prior to the exercise of the option granted to Formula and 72.22 percent of Idan's ordinary shares after exercise of Formula's option. Idan will own 17.79 percent of Elitech's ordinary shares prior to the exercise of the option granted to Idan and 50.004 percent of Elitech's ordinary shares after exercise of Idan's option. The transactions are subject to a number of customary conditions, including approval of the transactions by shareholders of Idan. The transactions are expected to be consummated by June 1, 1992. Elitech is an Israeli company which sells computer equipment and provides communications operations services. Formula is an Israeli company engaged in computer software development. Elitech's and Formula's shares are traded on the Tel Aviv Stock Exchange. The definitive agreements signed by the parties amend the previously announced agreement in principle between Idan, Formula and the other shareholders, pursuant to which Idan would have issued 1,500,000 ordinary shares to Formula for an aggregate purchase price of US$300,000 and Idan would have issued an additional 15,000,000 shares to Formula and Jesselson, Goldstein and Harel in exchange for 751,000 ordinary shares of Elitech. Upon consummation of the original transaction, Idan would have owned 50.004 percent of the outstanding ordinary shares of Elitech, and Formula and Jesselson, Goldstein and Harel would have owned approximately 72 percent of the outstanding shares of Idan. -0- 4/2/92 /CONTACT: Michael Temkin president of Idan Software Industries, 011-972-3-730-237/ (IDANF) CO: Idan Software Industries -- I.S.I. Ltd.; Formula Systems ST: IN: CPR SU: TNM
SM-KW -- NY074 -- 4597 04/02/92 17:21 EST EST electroshock therapy.