Formula Systems (FORTY): Formula injects $2m into Sapiens to reta...

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Saturday, 07/02/2005 7:51:15 AM

Saturday, July 02, 2005 7:51:15 AM

Formula injects $2m into Sapiens to retain Nasdaq listing

The minimum equity for listing on the main Nasdaq index is $10 million.

Golan Fridenfeld 29 Jun 05 11:31

Formula Systems (Nasdaq: FORTY; TASE: FORT), controlled by chairman Dan Goldstein and the First Israel Mezzanine Investors Fund (FIMI), has decided to inject $2 million into Sapiens International NV (Nasdaq: SPNS; TASE: SPNS). Formula wishes to prevent Sapien’s demotion to the Nasdaq SmallCap Market. Formula will be allocated shares for its investment, increasing its controlling stake in Sapiens to 58%.
Without Formula’s capital injection, Sapiens will be moved from the main Nasdaq list to the SmallCap list. The minimum equity for listing on the main Nasdaq index is $10 million.

”Sapiens has good parents. We decided to prevent demotion of the share to the SmallCap Market. The company has no cash flow shortage,” Goldstein said yesterday. “I believe that the second quarter will be better than the first.”

The capital injection is the second support measure for Sapiens by the Formula controlling shareholders.

Published by Globes [online] - www.globes.co.il - on June 29, 2005

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