Migdal Ha'Emek, Israel--December 18, 1996--LanOptics Ltd. announced that it has applied for the necessary approvals in Israel to allow it to repurchase up to 10 percent of its outstanding shares (up to approximately 600,000 shares) in the open market from time to time, at prevailing prices. The company, which has cash reserves of approximately $18 million, has allocated up to $6 million for such purchases.
As the company announced on Oct. 23, 1996, management believes that the company's shares represent an attractive investment opportunity at current market prices. At the time, the Board of Directors instructed the company's advisors to explore ways to use a portion of the company's cash reserves to purchase outstanding shares in the open market.
Israeli corporate law, in contrast to U.S. corporate law, requires prior court and shareholder approval for share repurchases. Accordingly, the company's general counsel has filed a motion with the Tel-Aviv District Court requesting approval of the repurchase. The company will also convene a shareholders meeting in the near future.
The motion notes that the company has approximately $18 million in cash reserves, has no long-term debt and has only minimal short-term debt (primarily to suppliers). The motion further notes that the company is of the view that in light of current market conditions and the share price on Nasdaq, an investment in the company's shares is an advisable business and financial opportunity. Any shares to be acquired by the company will be available for the exercising of employee stock options.
Migdal Ha'Emek, Israel
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