Top Image Systems Announces a Private Placement of $2.85M Ordinary Shares at $2.00/Share

Top Image Systems Ltd. TISA today announced it has entered into a definitive agreement for the private placement of $2,850,000 of ordinary shares of the Company at a purchase price of $2.00 per share to accredited investors. The investors will also receive 25% warrant coverage to purchase up to 356,250 ordinary shares with an exercise price of $2.20 per share, subject to customary adjustments. The warrants will not be exercisable for 6 months following the closing and may be exercised for five years thereafter. The offering is expected to close June 10, 2011, subject to customary closing conditions. TIS expects the net proceeds to be approximately $2,680,000 after deducting the placement agent fees and the costs associated with the offering. "We believe the Company's cash flow position will be significantly enhanced through the combination of our enhanced operating results and this private placement," commented Dr. Ido Schechter, CEO of TIS. "With the capital raised from this placement, Top Image Systems has the ability to continue to implement its strategy."