HERZLIYA, Israel--Optibase Ltd. (NASDAQ:OBAS) (the "Company" or Optibase"), a leader in advanced digital video solutions, today announced that its board of directors approved a private issuance by the Company of newly issued ordinary shares of the Company to Mr. Shlomo (Tom) Wyler, the Chief Executive Officer and Executive Chairman of the Board of Directors in consideration for US$5 million in cash, in the aggregate. The purchase price per share will be determined based on the average of the Company's closing price on the Nasdaq Global Market during the 30-day period preceding the issuance date of the shares. The Company undertook to make its best efforts to register for resale the shares under the Securities Act of 1933 within 6 months as of the issuance date.
The private issuance is subject, among others, to the approval of the Company's shareholders, and there can be no assurance that the private placement will be consummated. For further information see the Company's Proxy Statement to be filed with the Securities And Exchange Commission on Form 6-K.
About Optibase
Optibase provides professional encoding, decoding, video server upload and streaming solutions for telecom operators, service providers, broadcasters and content creators. The company’s platforms enable the creation, broadband streaming and playback of high quality digital video. Optibase’s breadth of product offerings are used in applications, such as: video over DSL/Fiber networks, post production for the broadcast and cables industries, archiving; high-end surveillance, distance learning; and business television. Headquartered in Israel, Optibase operates through its fully owned subsidiary in Mountain View, California and offices in, Japan, China, India and Singapore. Optibase products are marketed in over 40 countries through a combination of direct sales, independent distributors, system integrators and OEM partners. For further information, please visit www.optibase.com.
This press release contains forward-looking statements concerning our marketing and operations plans. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. All forward-looking statements in this press release are made based on management's current expectations which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements. These statements involve a number of risks and uncertainties including, but not limited to, risks related to the video technologies market in general, and the evolving IPTV market in particular, competition, our ability to manage growth and expansion, general economic conditions and other risk factors. For a more detailed discussion of these and other risks that may cause actual results to differ from the forward-looking statements in this news release, please refer to Optibase's most recent annual report on Form 20-F. The Company does not undertake any obligation to update forward-looking statements made herein.
