Magal Raises $16 Million in a Successful Rights Offering

Magal Security Systems, Ltd. MAGS today announced that it has successfully raised $16 million in a rights offering to its shareholders. Taking into account the over subscription rights, there was demand for 133% of the offered shares. Eitan Livneh, President and CEO of Magal S3, commented: "I am pleased that we have successfully completed the offering with broad participation by Magal's shareholders. While a significant portion of the cash raised will be used to repay the outstanding debt owed to our controlling shareholder, we have also strengthened our capital structure. This has improved our ability to compete for large scale projects and pursue new opportunities; it complements our new strategy which is working, as evidenced by our recent large projects wins."