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PETAH TIKVA, Israel - Satellite networking technology provider Gilat Satellite Networks Ltd. (NASDAQ:GILT, TASE:GILT), currently trading at $10.57 with a market capitalization of $591 million, announced Tuesday it has secured commitments from Israeli institutional and accredited investors for a private placement of 7,058,820 ordinary shares at $9.35 per share.
The offering price represents a 6.3% discount over the company’s 7-day Volume Weighted Average Price. The newly issued shares will constitute approximately 11% of Gilat’s outstanding ordinary shares after the transaction closes. The stock has shown remarkable momentum, gaining 13% in the past week and 72% year-to-date, now trading near its 52-week high of $10.65. According to InvestingPro analysis, which offers 15+ additional insights, the stock appears fairly valued at current levels.
The company expects to receive approximately $65 million in net proceeds after deducting expenses. According to the press release, Gilat intends to use the funds for general corporate purposes.
The private placement is being conducted only in Israel and not to U.S. persons, under a registration exemption provided by Regulation S of the U.S. Securities Act of 1933. The shares will be subject to certain transfer restrictions.
The transaction, which has received approval from Gilat’s Board of Directors, is expected to close in September 2025, subject to customary closing conditions.
Gilat Satellite Networks provides satellite-based broadband communications solutions for commercial and defense applications, with operations spanning over 35 years in the industry.
In other recent news, Gilat Satellite Networks Ltd. reported strong financial results for the second quarter of 2025, significantly surpassing analyst expectations. The company achieved an earnings per share of $0.21, compared to the anticipated $0.04, marking a 425% earnings surprise. Revenue also exceeded forecasts, reaching $105 million against a projected $100.99 million. In addition to its robust earnings performance, Gilat’s subsidiary, Gilat DataPath, secured a substantial contract with the U.S. Department of Defense. The contract, valued at over $7 million, involves the delivery of transportable satellite communication terminals. These developments underscore Gilat’s recent momentum in both financial performance and strategic partnerships.
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