ROSH HA'AYIN, Israel,
May 28 /PRNewswire-FirstCall/ -- BVR Systems (1998)
Ltd., (OTCBB: BVRSF.OB), a diversified world leader in advanced military
training and simulation systems, today announced, entering into an agreement
with Yuval Golan Investments Ltd. and Michael Golan Securities Holdings Ltd.
(collectively the "Investor") pursuant to which the Investor shall provide to
the Company
$3,500,000 by way of a debenture (the "Debenture Amount"). Of the
Debenture Amount
$2,000,000 shall be provided to the Company no later than
May 31, 2009 and the balance of
$1,500,000 shall be provided on
June 21, 2009.
The Company shall repay the debenture twelve months from the date of its
issuance by payment to the Investor of $3,850,000.
In the event of a M&A transaction during the 12 months period commencing
as of the provision of the Debenture Amount the Company shall immediately
repay the debenture by payment to the Investor of $4,550,000.
In addition, the Company shall grant to the Investor an option to
purchase 3,000,000 Ordinary Shares of the Company, at an exercise price per
share of $0.18, exercisable for a period of five years.
It is agreed that if the Company shall not repay the Debenture Amount 12
months from the date of its provision then (a) as of the commencement of the
second year the Debenture Amount shall bear a return rate of 15% per annum;
(b) upon a M&A transaction during the second year as of the provision of the
Debenture Amount the Company shall repay to the Investor an amount of
$5,600,000; and (c) the Company shall issue to the Investor additional
options to purchase 6,000,000 Ordinary Shares, at an exercise price per share
of $0.18, exercisable for a period of four years commencing as of the date of
entitlement.
The Debenture Amount to be provided by the Investor shall be secured by a
pledge of rights and payments due to the Company under a certain license
agreement.
About BVR Systems
BVR Systems (1998) Ltd. is a world leader in advanced defense training
and simulation systems. The Company offers highly efficient, cost-effective
solutions to the simulation, training and debriefing needs of modern air, sea
and ground forces.
For more information visit the Company's web site at
http://www.bvrsystems.com
This press release may contain forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on the current
expectations of the management of BVR only, and are subject to a number of
factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements. The
following factors, among others, could cause actual results to differ
materially from those described in the forward-looking statements: changes in
technology and market requirements; decline in demand for BVR's products;
inability to timely develop and introduce new technologies, products and
applications; loss of market share and pressure on pricing resulting from
competition, which could cause the actual results or performance of BVR to
differ materially from those contemplated in such forward-looking statements.
BVR undertakes no obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events. For a more
detailed description of the risk and uncertainties affecting BVR, reference
is made to BVR's reports filed from time to time with the Securities and
Exchange Commission.
Contact:
Ilan Gillies - CEO
BVR Systems (1998) Ltd.
Tel +972-3-900-8000
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