Herzliya, Israel 23 April 2004 –VCON (ISIN Code: IL 00 108 30540), a worldwide leader in visual communications solutions, today announced the closing of the private placement of its shares for US$10 million by certain venture capital funds. The signing of the transaction and additional information concerning the transaction were announced on January 27, 2004 and February 27, 2004, respectively. Following the closing of the transaction, the investors paid, in aggregate, US$10 million (€ 8.4 million) in cash to VCON in consideration for the issuance of 14,880,953 ordinary shares of VCON, reflecting a purchase price of approximately US$0.67 (€ 0.56) per share. This price represents the lowest average price per share of VCON's shares traded on the Nouveau Marché over a period of ten consecutive trading days out of the twenty trading days preceding the closing of the transaction. The issuance of these shares resulted in VCON having 32,016,648 ordinary shares in issue; while the total number of shares issued pursuant to the transaction represents 46.5% of VCON's issued and outstanding share capital. The effect of this issuance of shares on a shareholder holding, pre-transaction, 1% of the share capital of VCON, and have not subscribed in the placement, will be to reduce such holding to 0.535%, post-transaction. Based on VCON's audited balance sheet for December 31, 2003 (i) the total consolidated equity per share has increased from US $0.60 (€ 0.50) (pre-transaction) to US $0.63 (€ 0.53) (post-transaction) and (ii) the total shareholders' capital per share has decreased from US $4.13 (€ 3.47) (pre-transaction) to US $2.53 (€ 2.12) (post-transaction). Post-closing of the transaction, two groups of shareholders, Index Ventures and Pitango, each holds or controls, respectively, directly or indirectly, approximately 24% and 22% of VCON’s share capital and the total number of shares held by the public through Euroclear now represents approximately 25% of VCON’s share capital (pre-transaction, the public float held through Euroclear represented approximately 47% of the issued share capital of VCON). VCON intends to apply for the listing of the newly issued shares on Le Nouveau Marché. For the purposes of such listing, a prospectus describing the transaction will be submitted to the Autorité de Marchés Financiers for approval. (All US $ amounts in this press release are, for convenience, converted to € amounts based on an exchange rate of 1 € = 1.1915 US $). |
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About VCON
VCON develops and manufactures visual communications solutions that bridge distances between people. Our award-winning technology ensures the highest audio and video performance over your enterprise IP and ISDN networks. VCON’s meeting and collaboration solutions include desktop and group videoconferencing products, along with an advanced IP video PBX that operates as a management, administration, and billing tool. The company markets its products and services through a network of reseller partners, OEMs and value-added resellers worldwide. Headquartered in Israel, VCON holds subsidiaries in six continents and is publicly traded on Le Nouveau Marché (ISIN Code: IL 00 108 30540).
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