The private placement planned for Mashov Computers Ltd of Israel has been reduced in size. Originally set to raise $5m from three investors, the sum has been reduced to $3m from only two investors. According to sources at Mashov, the third investor, Shamrock, pulled out because it was not allowed by Israel’s Securities Authority to make the investment using shares it owns in Magic Software. The other two investors who remain are Formula and Dowland. Formula will invest $1.8m for 1.5 million shares (approximately 5% of the company) at $1.20 per share. Formula has an option to invest a further $11.9m for 9.45 million shares at $1.26 per share (31.1% of Mashov shares making Formula’s overall share 36.3% of the company). Dowland will invest $1.1m for 900,000 shares (approximately 3% of the company), also at $1.20 per share. Dowland has the option of investing a further $700,000 for another 2% of Mashov. The options expire at the end of February next year.
