Gilat Satellite Networks Secures $66 Million Through Private Placement

Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) has secured commitments from Israeli institutional and accredited investors for a private placement totaling approximately $66 million. The company will issue 7,058,820 ordinary shares at $9.35 per share, representing a 6.3% discount over the 7-day Volume Weighted Average Price. This transaction is expected to increase the company's outstanding shares by approximately 11% upon completion.

The private placement, conducted exclusively in Israel under Regulation S of the U.S. Securities Act, provides Gilat with substantial capital infusion while avoiding the U.S. market. The company anticipates net proceeds of approximately $65 million after deducting offering expenses, which it intends to use for general corporate purposes. This funding comes at a critical time for satellite networking technology companies facing increased capital requirements for research and development in multi-orbit constellations and advanced connectivity solutions.

The transaction's significance extends beyond the immediate financial injection, as it demonstrates institutional investor confidence in Gilat's strategic direction and growth potential. The 6.3% discount to market price reflects typical private placement dynamics while still providing substantial capital for the company's operations. The closing, expected in September 2025, remains subject to customary conditions, including regulatory approvals and market conditions.

This capital raise occurs against the backdrop of ongoing geopolitical tensions that the company acknowledges could impact its operations. As stated in their forward-looking statements, risks include the war and hostilities between Israel and Hamas, Hezbollah, Iran, and the Houthi movement. Despite these challenges, the successful placement indicates strong investor belief in Gilat's ability to navigate current market conditions while advancing satellite networking technology. For more information about the company's comprehensive portfolio, visit http://www.gilat.com.