Medis Technologies Ltd. (New York, NY) reported that its recent rights offering was oversubscribed. Stockholders purchased 3,500,000 shares of common stock at a fixed subscription price of $2.00 per share. The company advises that the bet proceeds from the offering will be used for working capital, including for the continued development of Medis' DLE/M fuel cell technology.
Holders of Medis common stock as of February 13, 2002, had received, at no cost, 0.199626083 of a 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. The rights, which were nontransferable, expired March 18, 2002, at 5:00 pm. 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.
Robert Lifton, chairman and CEO of Medis, 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 provide us with ample resources to carry on our business activities.”
