Tuesday, April 26, 2011

Bethel Finances: Defense co Arotech files $35m Nasdaq shelf prospectus

www.bethelfinance.com

Bethel Finance news:

Defense company Arotech Corporation (Nasdaq: ARTX) has filed a shelf prospectus with the US Securities and Exchange Commission (SEC) to raise up to $35 million in an offering of shares, warrants, or bonds. The company will use proceeds from the offerings for general business purposes, R&D, production, and acquisitions.

Arotech had just $6.3 million in cash at the end of 2010, and an additional $1.8 million in restricted deposits. The company develops simulators, armor kits for vehicles, and zinc-air and lithium batteries through its units in Israel and the US. Its armor kits unit is located in Lod.

In the prospectus, Arotech mentioned the investment risks, which include its accumulated debt - $170.7 million, since it was founded in the early 1990s. The company added that the employment contract with chairman and CEO Robert Ehrlich expires at the end of the year.

Arotech's revenue fell 1% to $73.7 million revenue in 2010 from $74.5 million, and its net loss narrowed 64% to $1.1 million ($0.18 per share) from $3.1 million. At the conference call following the publication of the results, Ehrlich said that the company was examining new fields of activity, including medical imaging and the development of batteries for storing solar and wind-generated energy.

Arotech's share price rose 3.2% yesterday to $1.31, giving a market cap of $19 million.

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