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Bethel Finance news:
Due to a severe cash flow problem, LifeWave Hi-Tech Medical Devices Ltd. (TASE:LIFE) has decided to exercise the right it has been given to take a loan of up to NIS 4 million from its controlling shareholders Yitzhak Kaufman and Reuven Shulman, on favorable terms. For now, LifeWave will borrow NIS 1 million from the investors, which it will use to cover current liabilities, including salaries and payments to suppliers.
LifeWave had only NIS 3,000 in cash at the end of the third quarter of 2011, and it has no significant income. Aside from NIS 1 million in ongoing expenses, it owes an additional NIS 1 million to an investor, which it hopes to convert into shares.
In the meantime, LifeWave is actively searching for additional funding. If it succeeds, it is possible that LifeWave will renounce part of the amount that it had intended to raise from its controlling shareholders.
It is unusual these days for owners of a company in distress to give a personal loan to the company. Until now, LifeWave has refrained from taking advantage of the line of credit that its shareholders have made available, even though the situation has been worsening. Now, though, it seems that this is the company's last resort to prevent its collapse.
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