Gilat Satellite Networks Secures $66 Million in Private Placement from Israeli Investors
Gilat Satellite Networks has raised $66 million through a private placement of shares to Israeli institutional and accredited investors, providing significant capital for general corporate purposes while expanding its investor base.
Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) has secured commitments from Israeli institutional and accredited investors for a $66 million private placement of ordinary shares. The company's board of directors approved the transaction, which involves the issuance of 7,058,820 ordinary shares at $9.35 per share, representing a 6.3% discount over the 7-day volume weighted average price.
The newly issued shares are expected to represent approximately 11% of the company's outstanding ordinary shares following the transaction's completion. Gilat anticipates receiving net proceeds of approximately $65 million after deducting offering expenses, which the company intends to use for general corporate purposes. The closing of the transaction is subject to customary closing conditions and is expected to occur in September 2025.
This private placement is significant as it provides Gilat with substantial capital infusion during a period of global market uncertainty. The funding comes exclusively from Israeli investors under Regulation S of the U.S. Securities Act, meaning the offering is not available to U.S. persons. The shares will be subject to transfer restrictions and will not be registered under the Securities Act, limiting their availability in the United States without proper registration or exemption.
The transaction demonstrates continued investor confidence in Gilat's satellite networking technology and services despite the ongoing geopolitical challenges mentioned in the company's forward-looking statements. These statements caution that actual results may differ from expectations due to risks including the war and hostilities between Israel and Hamas, Hezbollah, Iran, and the Houthi movement. For more information about Gilat's comprehensive satellite solutions, visit http://www.gilat.com.
This capital raise positions Gilat to strengthen its market position in satellite-based broadband communications, supporting its commercial and defense divisions that serve government, mobility, broadband access, and critical infrastructure clients worldwide. The private placement represents a strategic move to bolster the company's financial resources while expanding its investor base within Israel's institutional investment community.