TEL AVIV, Israel, February 27, 2012 /PRNewswire/ --
Elbit Imaging Ltd. (NASDAQ: EMITF) ( " Elbit " " Company " ) announced that it's subsidiary, Elbit Medical Technologies Ltd. (TASE: ELMDT) (" EMT"), (in which the Company holds approximately 90% and approximately 93% on a fully diluted basis), announced today that InSightec Ltd. (in which the Company together with EMT holds approximately 66%) (" InSightec"), and InSightec's wholly owned subsidiary have entered into long term funding agreements with GE Healthcare (" GE") pursuant to which GE would provide financing to InSightec in the form of convertible loans up to a total of $13,750,000, as will be agreed between the InSightec and GE from time to time, to support the InSightec's R&D, Sales & Marketing, business development, legal and operational needs (" GE Funding Agreement").
GE Funding Agreement will be in similar terms and conditions to the financing previously provided by EMT and the Company (as will be amended simultaneously to the signing of the GE Funding Agreement). InSightec and GE have agreed that the long term funding will be in a form of Convertible Notes (" GE Notes") that will bear interest at 6% (or interest rate equivalent to the interest rate applicable to the financing provided by the Company and EMT) and which will be secured as set forth below. The GE Notes would be convertible into Series B-1 Preferred Shares, and the outstanding balance that shall not be so converted, shall be payable by October 1, 2016.
In addition, the existing financing granted to InSightec by the Company and EMT during 2010 and 2011, will be amended, subject to required corporate approvals, to provide similar loan terms and security mechanism as for the GE Funding Agreement. The Company and EMT will receive Convertible Notes (" Notes") convertible on the same terms as the GE Notes, as specified above. Such Notes, as well as the GE Notes, will be secured by Floating Charge and Security Agreements (" Charge Agreements") over InSightec's and its wholly owned subsidiary's assets, pari passu with GE's Charge Agreements.About InSightec