A new company/entity by the name Negevtech, Ltd. will exist after the Israel Growth Partners business deal is concluded. The business deal, which was declared on March 9, 2008 comprised the acquisition of Negevtech, Ltd. by Israel Growth Partners Acquisition Corp., or IGPAC.
The write up below throws light onto the business deal. The Israel Growth Partners business deal was announced on the March 9, 2008, and made it clear that Israel Growth Partners Acquisition Corp., or IGPAC, acquired Negevtech, Ltd. Due to the Israel Growth Partners business deal, a new publicly held company will be formed by the name Negevtech, Ltd. Negevtech, Ltd. will gain access to the public markets, allowing the growth strategies of the company to be fanned. Negevtech, Ltd. could also make use of the healthy growth trends prevailing in the market.
Israel Growth Partners Acquisition Corp or IGPAC:
Set up in August 2005, IGPAC is a “SPAC” or Special Purpose Acquisition Corporation. It is entrusted with the responsibility of bringing about capital stock exchanges, mergers, and acquisition of assets and many similar operations.
The company went public on July 18, 2006 by launching an IPO.
A total of 532,500 shares of Series A Unit were offered to the public along with 5,118,000 Series B Units. The Series A Units were priced at $8.50 per unit and the Series B Units were priced at $10.10 per unit.
Negevtech systems are used in the manufacturing of semiconductors, which help in identifying defects pertaining to wafers. This allows manufacturers to improve their revenues, enhance productivity and reduce costs. Their Step & Image (TM) technological know how is employed in the various processes of the company. Embracing a new plan related to the inspection of IC wafer is in the company’s cards.
The Israel Growth Partners Business deal:
Due to the business deal, Negevtech, Ltd. will have access to $55,000,000 in the trust account of IGPAC; this is likely to be utilized as the company’s working capital. This fund would also be used for sales initiatives (present and future), for incurring costs pertaining to the IGPAC acquisition of Negevtech, Ltd., for costs incurred on research and development, and for clearing the debts of Negevtech, Ltd.
Allotment of shares:
The stockholders of IGPAC Class B Common Stock and IGPAC Common Stock would be assigned Negevtech’s ordinary shares against the securities currently held. As a result of the Israel Growth Partners’ business deal, the stockholders of IGPAC would own 51.3% pertaining to Negevtech, Ltd.
The business deal between IGPAC and Negevtech is expected to enhance the effectiveness as well as the efficiency of the policies followed in attaining a place of prominence in the financial markets.