Standby Equity Agreement
This agreement (as of May 8, 2018) is for the reciprocal agreement of yA II PN, LTD. (investor) and MICRONET ENERTEC TECHNOLOGIES, INC. (the “company”) be confirmed to terminate standBY EQUITY DISTRIBUTION AGREEMENT between the parties as of August 22, 2017 in the agreement collectively executed by the “SEDA” contract of November 17, 2017. Subject to its terms, the $5 million SEDA facility may be used at the company`s discretion. Under the agreement, Ariana can take funds over a period of up to three years in exchange for the issuance of new common shares. Common shares issued by the Company receive a 5% discount on the prevailing market price during the 10 days of pricing. The company can also set a minimum price for each drop. The maximum advance that can be requested is equal to 200% of the average daily volume of common shares multiplied by the average price weighted by the volume of these shares for each of the ten trading days preceding the counting request. The installation can only be used once every 10 days. A $150,000 tax on the first draw ensures the SEDA facility. Yorkville has offices in Jersey City, New Jersey; Jupiter, Florida; Denver, Colorado; London and Hong Kong, as well as a joint enterprise agreement in Milan, Italy.
Yorkville adapts its financing to the needs of each business and offers a mix of debt structures, bridge financings, asset-backed loans, capital facilities and, in some cases, capital inflows. Founded in January 2001 by Mark Angelo, Yorkville specializes in flexible and innovative investment and equity investments and financings in publicly traded companies in a variety of sectors such as energy, mining, media and telecommunications technologies (TMT), health and shipping. In Finance, SEDA is synonymous with a standby sales agreement. This is an agreement under which a small publicly traded company collects additional capital by selling new shares without a formal secondary market offer. Under a SEDA, a financial company undertakes to acquire a defined maximum of shares that will be offered in lots (slices) on a specified period of time. The buyer receives the stock with a discount to the current market price (often 5 percent) and the SEDA usually indicates a maximum price of the stock that the company is willing to pay. If the company discovers that it never needs more funds, it may decide not to sell shares at all or to sell only part of the maximum.