TEL AVIV, Israel, March 14, 2013 /PRNewswire/ --
RiT Technologies (NASDAQ: RITT) today announced that it has signed a private Share Purchase Agreement with STINS COMAN Inc., ("STINS COMAN"), its principal shareholder, under which it will convert an outstanding loan in the amount of approximately $4.5 million into 1,021,166 of the Company's ordinary shares at an average price of $4.44 per share.
This transaction is an addition to the previous conversions completed from May 2010 - December 2012, and is being executed under the terms stipulated in the Loan Agreement between RiT and STINS COMAN dated June 11, 2009, as amended. The completion of this transaction is subject to customary conditions, and the issuance of shares is expected to take place on March 29, 2013. Upon completion, STINS COMAN's holding (including through affiliated company) will rise to approximately 87% of the Company's voting power.
Commenting on the news, Dr. Vadim Leiderman, RiT's President and CEO, said, "We are completing this transaction as an initial step in correcting Nasdaq's Shareholders' Equity requirement, as we reported earlier today. This transaction demonstrates, once again, STINS COMAN's confidence in our prospects. We believe that the launch of our two new breakthrough solutions - Beamcaster™ and PatchView™+ will bring the Company to a whole new era of rapid growth and profitability."About RiT Technologies RiT is a leading provider of intelligent infrastructure management (IIM) solutions and a developer of a new revolutionary indoor optical wireless technology solution. Our IIM products provide and enhance security and network utilization for data centers, communication rooms and work space environments. They help companies plan and provision, monitor and troubleshoot their communications networks, maximizing utilization, reliability and physical security while minimizing unplanned downtime. RiT's IIM solutions are deployed around the world, in a broad range of organizations, including: data centers, enterprises, corporations, government agencies, financial institutions, airport authorities, healthcare institutions, and education institutions. RiT's indoor optical wireless technology solution will help our clients streamline deployment, reduce infrastructure design, installation and maintenance complexity and enhance security in a cost effective way. RiT's shares are traded on the Nasdaq exchange under the symbol RITT.