RISHON LEZION, Israel, August 25, 2008 (BUSINESSWIRE) B.O.S. Better OnlineSolutions Ltd. (“BOS” or the “Company”) (NASDAQ:BOSC; TASE: BOSC) aleading provider of comprehensive Mobile and RFID Solutions and SupplyChain Solutions, announced today that it has entered into a definitive privateplacement agreement with an Australian investor. The agreement is for theissuance of an aggregate of 816,327 Ordinary Shares (equal to 6.3% of theoutstanding shares of the Company following the investment) at a price pershare of $1.225, or $ 1,000,000 in total. In addition, the Company will issue to theinvestor warrants reflecting 50% warrant coverage, exercisable for two yearsfrom their date of issuance for purchase of ordinary shares at a price of $1.475 per share.
When issued, the Ordinary Shares will not be registered under the Securities Actof 1933 and may not be subsequently offered or sold by the investor withoutregistration or an applicable exemption from the registration requirements. BOShas agreed to grant the investor certain incidental registration rights, to cover theresale of the Ordinary Shares from this transaction, subject to certain terms and conditions.
Shmuel Koren, BOS’s President and CEO said: “We are very pleased with thisnew investment which reflects an international vote of confidence and supportin the Company and its vision going forward. This investment strengthens ourbalance sheet as we continue to implement our strategy of becoming a leadingglobal provider of Mobile & RFID and of Supply Chain Solutions.
BOS’s operations consist of:
(i) Fully integrated Mobile and RFID Solutions that are offered either asstand alone products or as full Solutions combined of:
(a) Hardware Devices – A Mobile and RFID Infrastructure with anautomatic identification and data collection equipment based on RFID andbarcode technology; and
(b) Middleware – A variety of proprietary Servers intended to receivedata from Hardware, process it and transfer it to the SoftwareApplications; and
(c) Software Applications – pointAct application platform forimplementation of various business organizational processes.
(ii) Supply Chain Solutions- reselling electronic systems and components forsecurity, and aerospace manufacturers.
BOS is traded on NASDAQ and on the Tel-Aviv stock exchange. Our website is www.boscorporate.com.
For further information please contact:
B.O.S Better Online Solutions Ltd.
Mr. Eyal Cohen, CFO, +972-3-954-1000
Israeli Investor Relations – please contact
Mr. Zvi Rabin +972 50-560-0140
U.S. Investor Relations – please contact
Grayling GlobalMs. Leslie Wolf-Creutzfeldt
+ 1 +646-284-9472
The forward-looking statements contained herein reflect management’s currentviews with respect to future events and financial performance. These forward-lookingstatements are subject to certain risks and uncertainties that could causethe actual results to differ materially from those in the forward-lookingstatements, all of which are difficult to predict and many of which are beyondthe control of BOS.
These risk factors and uncertainties include, amongst others,the dependency of sales being generated from one or few major customers, the uncertainty of our being able to maintain current gross profit margins, inability to keep up or ahead of technology and to succeed in a highly competitive industry, inability to maintain marketing and distribution arrangements and toexpand our overseas markets, uncertainty with respect to the prospects of legalclaims against BOS; and additional risks and uncertainties detailed in BOS’s periodic reports and registration statements filed with the U.S. Securities Exchange Commission.
BOS undertakes no obligation to publicly update orrevise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.