Key Developments For MET'ALINK BE`AM
MET'ALINK BE`AM (MTLK.O) (Consolidated Issue listed on NASDAQ Capital Market)
Metalink Ltd. Draws Down $2.25 Million Under Short Term Secured Loan
Metalink Ltd. announced that it has drawn down $2.25 million under its previously announced short term secured loan agreement with an institutional investor. Concurrently with the draw down of the $2.25 million, Metalink and the lender entered into an amendment to the loan agreement, whereby Metalink shall receive the loan of $4.5 million contemplated in the original loan agreement to be provided in one tranche, in two tranches of $2.25 million each - the first partial tranche which was provided immediately, and a second tranche which shall be provided at the request of Metalink, within 60 days following the completion of certain terms and conditions which must occur on or before June 30, 2009.
Metalink Ltd. Announces $8 Million Short Term Secured Loan
Metalink Ltd. announced that it has entered into a short term secured loan agreement with an institutional investor. According to the loan agreement, the lender agreed to extend to the Company a loan of $3.5 million at the first stage (First Loan) and, at the request of the Company, an additional loan of up to $4.5 million (Second Loan). The key terms of the loan agreement are as follows: The outstanding principal amount (including of the Second Loan, if any) is due and payable in one payment 12 months after the first closing; The outstanding principal amount will accrue interest at an annual rate of 10% payable, in cash or ordinary shares, at the Company's election, on a quarterly basis; The loan may be prepaid by the Company at any time and is subject to a mandatory prepayment upon a change of control; and The loan is secured by a first priority fixed charge on all of the Company's intellectual property and a first priority floating charge on all of its other assets.
Metalink Ltd. Unveils Strategic Plan; Announces Significant Decrease In Its Workforce
Metalink Ltd. announced that it is evaluating number of strategic and financial options for its future development, as well as the potential sale of the Company, and in parallel, is deploying a comprehensive plan to reduce its ongoing operating expenses. The Company is also actively involved in capital raising activities, including through a private placement. The Company is in the process of implementing a cost reduction plan aimed at further reducing its operating expenses and preserve cash reserves until the expected ramp-up of its revenues from the sale of its WLAN chipsets materialize, a development which is currently expected to occur only in the later part of 2009. As part of its plan to achieve these objectives, the Company will be implementing a significant decrease in its workforce, and will be making a number of management changes.
Metalink Ltd. To Place $19.2 Million In Securities With Institutional Investors
Metalink Ltd. announced that it has entered into definitive agreements with institutional investors for a $19.2 million private placement of its ordinary shares and warrants to purchase its ordinary shares. Pursuant to the purchase agreements signed, the Company will sell 3,200,000 ordinary shares at $6.0 per share. The investors will also receive five-year warrants to purchase 800,000 ordinary shares at an exercise price of $8.0 per share, subject to adjustments. The Company is entitled to force the exercise of the warrants in the event the market price for its ordinary shares exceeds $12.0 per share for 20 out of 30 consecutive trading days. Closing of the transaction is anticipated within three business days.
Metalink Ltd. Introduces Advanced Intel Architecture-Based Reference Design
Metalink Ltd. announced a reference design for Residential Gateways (RG) that meets the strict requirements. The new platform integrates the Intel IXP4XX network processor family, which is based on Intel XScale technology, with Metalink's 802.11n-compliant WLANPlus chipset. The new RG design offers simultaneous support for both the 2.4GHz and 5GHz frequency bands, enabling it to transmit High-Definition (HD) multimedia content over the 5GHz band while concurrently supporting data networking and other legacy applications over the 2.4GHz band.
