Patlex to Acquire Full Ownership of Israeli Firm

Patlex said it agreed to acquire full ownership of Reshef Defense Technologies, a privately held Israeli armaments company, in a stock deal valued at about $11 million.

Patlex, a Chatsworth laser concern, already owns 14% of Reshef, a 2-year-old business that Patlex helped found. Reshef's sales and earnings were not disclosed, but a Patlex spokesman described the company as an electronic-fuse manufacturer that makes a small profit on "rather limited sales."

To acquire the rest of Reshef, Patlex said, it will offer 0.8 shares of its stock for each of the about 930,000 shares of Reshef that it does not already own. About 65,000 more Patlex shares will be offered in exchange for some limited partnership interests in Reshef.

The Patlex spokesman said his company has about 5.4 million shares outstanding and will issue about 800,000 new shares to execute the transaction.

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