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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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F O R M 6-K
Pursuant to Section 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of August 2002
RADA ELECTRONIC INDUSTRIES LTD.
(Name of Registrant)
7 Giborei Israel Street, Netanya 42504, Israel
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F __
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes __ No X
This Form 6-K is being incorporated by reference into the Company's Form F-3
Registration Statement File No. 333-11716.
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RADA ELECTRONIC INDUSTRIES LTD.
6-K Items
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1. RADA Electronic Industries Ltd. Interim Consolidated Balance Sheet as of
June 30, 2002 (Unaudited).
ITEM 1
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RADA ELECTRONIC INDUSTRIES LIMITED
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INTERIM CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2002
(UNAUDITED)
F-1
RADA ELECTRONIC INDUSTRIES LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEET
(In thousands of U.S. dollars, except share and per share data)
June 30,
2002
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Current assets
Cash and cash equivalents $ 255
Trade receivables (net of allowance for
doubtful accounts of $189) 681
Other receivables and prepaid expenses 173
Receivables in respect of shares to be issued (Note 2) 130
Costs and estimated earnings in excess of
billings on uncompleted contracts 103
Inventories 2,303
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Total current assets 3,645
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Long-term assets
Severance pay fund 1,353
Long-term receivables 1,144
Leasing Deposits 22
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2,519
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Property and equipment
Cost 18,674
Less - accumulated depreciation 12,460
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Total property and equipment 6,214
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Other assets, net 3,782
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Total assets $ 16,160
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The accompanying notes are an integral part of this consolidated balance sheet.
F-2
RADA ELECTRONIC INDUSTRIES LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEET
(In thousands of U.S. dollars, except share and per share data)
June 30,
2002
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Current liabilities
Short-term bank credits $ 5,270
Trade payables 634
Other liabilities and accrued expenses 2,888
Unearned income 2,265
Billings in excess of costs and estimated
earnings on uncompleted contracts 34
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Total current liabilities 11,091
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Long-term liabilities
Accrued severance pay 1,860
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1,860
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Minority interest 649
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Shareholders' equity
Share capital
Ordinary shares of NIS 0.005 par value:
Authorized - 26,000,000 shares; issued and
outstanding 13,816,839 shares 103
Additional paid-in capital 56,646
Receipts on account of shares, net (Note 2) 2,232
Accumulated deficit (56,421)
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Total shareholders' equity 2,560
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Total liabilities and shareholders' equity $ 16,160
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The accompanying notes are an integral part of this consolidated balance sheet.
F-3
RADA ELECTRONIC INDUSTRIES LIMITED
NOTES TO THE UNAUDITED CONSOLIDATED BALANCE SHEET
(In thousands of U.S. dollars, except per share data)
NOTE 1 - GENERAL
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The accompanying unaudited balance sheet has been prepared in accordance with
generally accepted accounting principles for interim financial information.
Accordingly, it does not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Although the Company believes that the disclosure presented herein is adequate
to make the information presented not misleading, it is suggested that this
balance sheet be read in conjunction with the 2001 annual financial statements
and footnotes.
NOTE 2 - PRIVATE PLACEMENT
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On June 30, 2002 the Company concluded a private placement of its ordinary
shares under the following terms:
(A) A Purchase Agreement between the Company and certain investors according to
which such investors purchased 1,938,776 ordinary shares at a price of
$0.49 per share, for a total of $950. In addition, such investors will be
issued warrants to purchase 4,302,041 of the Company's ordinary shares.
Such warrants will be valid for five (5) years and be exercisable during
the first 36 months after issuance at an exercise price of $2 per share,
and thereafter, during the following 24 month period, at an exercise price
which will be equal to the higher of: (i) $2 per share or (ii) 50% of the
average closing price during the ten (10) trading days prior to an exercise
date. The warrants contain certain anti-dilution provisions that could
reduce the exercise price of the warrants in the event that the Company
issued securities at a price below the exercise prices of the warrants. As
of June 30, 2002 the Company received $820 in cash and a total of $130 is
presented as receivable from shareholders (this amount was received
subsequent to balance sheet date); and
(B) The conversion of $1,350 of the principal amount of loans granted by Mr.
Howard P.L. Yeung, one of the Company's controlling shareholders into
2,755,102 ordinary shares at a price of $0.49 per share. In addition, the
Company will issue to Mr. Yeung warrants to purchase 8,265,306 ordinary
shares. Such warrants will be valid for five (5) years and will be
exercisable during the first 36 months at an exercise price of $2 per
share, and thereafter, during an additional period of 24 months, at an
exercise price which shall be equal to the higher of: (i) $2 per share or
(ii) 50% of the average closing price of our ordinary shares during the ten
(10) trading days prior to the exercise date.
(C) The Company incurred $68 of expenses in connection with the issuance of the
shares.
F-4
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
RADA Electronic Industries Ltd.
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(Registrant)
By: /s/Herzle Bodinger
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Herzle Bodinger, Chairman
Date: August 13, 2002