Updates Regarding Continued Listing on NASDAQ
TEL AVIV, Israel, September 15 /PRNewswire-FirstCall/ -- RiT Technologies
(NASDAQ: RITT), the world-leading provider of intelligent infrastructure
solutions, today announced that it completed its private placement of
6,153,846 ordinary shares to STINS COMAN Incorporated, the Company's
controlling shareholder, for a total investment of $4 million, reflecting a
$0.65 purchase price per share.
As previously announced, on July 22, 2008, RiT entered into a Memorandum
of Understanding ('MOU') with STINS COMAN for a private issuance by the
Company of newly issued ordinary shares of the Company. As contemplated by
the MOU, the parties entered into a definitive purchase agreement setting
forth the terms of the transaction. Rather than converting the $4 million
short term loan that STINS COMAN agreed to extend to RiT in June 2008, the
purchase agreement provides for a direct investment of $4 million. In
conjunction with the closing, the $2 million short term loan that was
previously extended to RiT was repaid in full and the loan agreement was
terminated.
The closing of the transaction, which was subject, among others, to the
approval of the Company's shareholders (obtained at the 2008 Annual General
Meeting), occurred earlier today. Following the closing, STINS COMAN holds
12,304,182 RiT Shares, representing approximately 59.1% of RiT's outstanding
shares.
NASDAQ Update
RiT also reported today that a Nasdaq Hearings Panel determined to
further extend the period within which RiT may to regain compliance with the
minimum bid price requirement of $1.00 per share to November 26, 2008 (from
November 13, 2008); provided that on or before November 26, 2008, the closing
bid price of the Company's shares will be $1.00 or more for a minimum of 10
prior consecutive trading days. In order to comply with the terms of the
exception, RiT must continue to comply with all other Nasdaq requirements for
continued listing.
About RiT Technologies
RiT is a leading provider of intelligent solutions for infrastructure
management, asset management and network utilization.
