Motti Zisser's Elbit Medical Imaging (Nasdaq:EMITF) will convert $2 million worth of VCON (Nouveau Marche:022021) bonds into 2 million regular shares of the Paris-traded company.
VCON will also issue $2 million in new bonds to Elbit Imaging, carrying 2% annual interest.
Upon completion of the deal and the share allocation, Elbit Imaging will have a 20% stake in VCON's float, or a fully diluted 37% stake.
VCON is a public company traded in France, which develops video conferencing equipment. Elbit Imaging is a subsidiary of Europe Israel (M.M.S.) (TASE:EURO) which focuses on four main areas: entertainment and commerce through its subsidiary Plaza Centers, tourism through its subsidiary Elscint, medical imaging guided treatment via Insightec, and hi-tech communication investments, including those in VCON and in Olive Software.