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Radview raises $2 million in private placement with

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midastouch017   Saturday, 03/31/07 03:31:03 PM
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Radview raises $2 million in private placement with Israeli institutionals
31.3.07 | 16:18 By Omri Cohen
Israel's institutional investors are evidently not afraid of small technology companies with a big name for losses and flops. Radview (Nasdaq:RDVWF.OB), a small software house, raised about $2 million on Thursday in a private placement of shares and warrants, led by Meitav Underwriting.

During 2006 Israeli institutionals invested about $12.7 million in VoIP systems provider VocalTec (Nasdaq: VOCL) in two financing rounds, in which the company sold shares and warrants.

As for Radview, the institutionals received 32.9 million shares at the market price of 6 cents per share, and 5-year warrants convertible into 23 million more shares at the same price.

Radview said it will be using the money to finance its activities.

The company specializes in software solutions to test the performance of enterprise software in Internet environments.

A year ago a group of investors headed by the investments fund Fortissimo took over the company, which was teetering on the brink of collapse. The takeover ended the reign of Ilan Kinreich, founder and chief executive, and of the Zisapel brothers Zohar and Yehuda, at Radview.

Since taking control, Fortissimo has injected $3.2 million in exchange for shares and warrants at about 3-4 cents per share. It could ultimately invest up to $6.75 million.

Fortissimo manager Yuval Cohen commented in a statement, "We believe that the performance testing market is ready for a fresh perspective and with RadView's proven technology and solid customer base, we hope to bring exciting new offerings and solutions to the market in innovative ways."

Perhaps. Meanwhile business has not been taking off. For the year 2006 Radview reported a 24% slide in revenues to $4.3 million. It did however cut costs by 25% to $5.7 million in 2006, compared with $7.5 million the year before. Its 2006 loss therefore narrowed 27% compared with 2005 to $1.8 million. At the end of December 2006, it had only $240,000 cash left and a $2 million hole in its shareholders equity.


http://www.haaretz.com/hasen/spages/844242.html

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