(Nasdaq:BVRS) which is controlled by
, announced on Monday that it is to convert its
(Nasdaq:NXUS) bonds into shares.
The conversion refers to bonds worth $2.5 million, which were issued to BVR in June of 1999. Nexus will allocate 3.2 million shares at a conversion rate of one share for every $0.78 of debt. Afterwards, BVR's stake in Nexus will increase from 25% to 34%.
Nexus, which specializes in cellular locating systems, announced three weeks ago that it intends holding a private placement in the near future among its shareholders to raise $3 million to $5 million. The new funding is to be used in order to finance the firm's activities in 2001. The company ended the year 2000 with cash reserves of just $4.1 million.
In addition, Nexus also announced today a one for three reverse stock split of the company's shares. As a result, each of the firm's three outstanding ordinary shares, with a par value NIS 0.01 each, will be converted into one ordinary share, with a par value NIS 0.03 apiece.