90 Percent of All Available Rights Were Exercised For Gross Proceeds
of $22 Million
Israel Corporation, a Major Shareholder, has Invested $7 Million to
Exercise Rights and has Committed to Exercise all of its Series 8
Warrants for Additional Proceeds of $10 Million by July 22, 2013
MIGDAL HAEMEK, Israel--(BUSINESS WIRE)--Jun. 30, 2013--
Tower Semiconductor Ltd. (NASDAQ: TSEM; TASE: TSEM), the global
specialty foundry leader, announced the completion of its previously
announced rights offering to eligible security holders. The company
received gross proceeds of $22 million out of maximum possible amount of
approximately $24 million offered, representing a 90% participation
rate. Israel Corporation Ltd., a major shareholder of the Company,
exercised its Rights in full and has further committed to exercise all
of its Series 8 warrants on or before July 22, 2013, for an additional
investment in TowerJazz of approximately $10 million.
"In the past weeks, we had opportunities to meet with multiple investors
and discuss company strategies, tactics and performance. There was an
overall understanding, appreciation and belief in the direction the
company is taking and of the strong traction within the strategic
initiatives that the company has announced over the preceding years.
This appreciation and belief is best evidenced, and we are most pleased
to announce, that 90% of all available rights were exercised. We
appreciate this strong vote of confidence by our
stakeholders," said Russell Ellwanger, chief executive officer of the
Company. "We will continue to focus on analog technology leadership with
strategic steps driving deeper and broader offerings within the
industrial mega trends of 1) green everything, 2) wireless everything,
and 3) integrated smart systems and hence provide unique value to our
customers with strong financial models."
A total of approximately 1.1 million rights were exercised in the rights
offering. Each right is exercisable for four ordinary shares, six
short-term Series 8 warrants exercisable at $5.00 per share until July
22, 2013 and five Series 9 warrants exercisable at $7.33 per share until
June 27, 2017. Both the Series 8 warrants and the Series 9 warrants will
be listed for trade on the Tel Aviv Stock Exchange and its CUSIP numbers
are M87915 407 and M87915 415, respectively.
About TowerJazz
Tower Semiconductor Ltd. (NASDAQ: TSEM, TASE: TSEM), its fully owned
U.S. subsidiary Jazz Semiconductor Ltd., and its fully owned Japanese
subsidiary TowerJazz Japan, Ltd., operate collectively under the brand
name TowerJazz, the global specialty foundry leader. TowerJazz
manufactures integrated circuits, offering a broad range of customizable
process technologies including: SiGe, BiCMOS, Mixed-Signal/CMOS, RFCMOS,
CMOS Image Sensor, Power Management (BCD), and MEMS capabilities.
TowerJazz also provides a world-class design enablement platform that
enables a quick and accurate design cycle. In addition, TowerJazz
provides (TOPS) Transfer Optimization and development Process Services
to IDMs and fabless companies that need to expand capacity. TowerJazz
offers multi-fab sourcing with two manufacturing facilities in Israel,
one in the U.S., and one in Japan. For more information, please visit www.towerjazz.com.
Safe Harbor Regarding Forward-Looking Statements
This press release includes forward-looking statements, which are
subject to risks and uncertainties. Actual results may vary from those
projected or implied by such forward-looking statements. A complete
discussion of risks and uncertainties that may affect the accuracy of
forward-looking statements included in this press release or which may
otherwise affect TowerJazz’s business is included under the heading
"Risk Factors" in Tower’s most recent filings on Forms 20-F and F-3, as
were filed with the SEC and the Israel Securities Authority, and Jazz’s
most recent filings on Forms 10-K and 10-Q, as were filed with the SEC.
Tower and Jazz do not intend to update, and expressly disclaim any
obligation to update, the information contained in this release.
Source: TowerJazz
CCG Investor Relations
Kenny Green, 646-201-9246
towersemi@ccgisrael.com
or
TowerJazz
Investor Relations Contact:
Noit Levi, noit.levi@towerjazz.com
