Medis Technologies Ltd. (New York) reported that its recently completed rights offering was over-subscribed. Medis reported stockholders purchased 2,325,600 shares of common stock at a fixed subscription price of $2.15 per share. Net proceeds from the offering will be used for working capital, including for the continued development of Medis' direct liquid fuel cells and attendant refueling cartridges.
Holders of Medis common stock as of February 7, 2003, had received, at no cost, 0.110180929 of a subscription right for each share of common stock they held of record at the close of business on that date, each whole right entitling the holder to purchase one share of Medis common stock. Certificates for the shares sold in connection with the rights offering will be issued, and funds received for over-subscription orders not filled will be returned, to the appropriate stockholders as soon as practicable.
Medis Chairman and CEO Robert Lifton stated, "We are gratified by the response we have received from our stockholders who participated in the rights offering. Based on a current burn rate of approximately $7,000,000 a year, the proceeds from this offering, together with our other cash resources and an unused $5,000,000 revolving credit line, currently provide us with ample resources to carry on our business activities."
