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BVR Systems Announces Raising of $3.5 Million

Written by thomas · Filed Under Aeronautics News 

May 28, 2009

thomas

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.

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