WILMINGTON, Del., Feb. 8, 2006 (PRIMEZONE) -- m-Wise, Inc. (OTCBB:MWIS), a leading technology provider of mobile content solutions for operators, ASPs and content providers, today announced that Elron Electronic Industries Ltd. (Nasdaq:ELRN), a multinational technology group, has entered into a termination and release agreement converting $1 million of debt to m-Wise restricted common stock.
Following similar terms of a transaction recently completed with Syntek Capital, m-Wise will issue a minimum of 5,561,994 shares of common stock in exchange for terminating m-Wise's years-old debt to Elron, Ltd. The conversion of this debt was for restricted shares at market value with no discount relative to the 30 days average trading price of the common stock.
Furthermore, m-Wise will issue Elron a warrant of 5,263,158 shares of common stock at an exercise price of $0.19 per share, which can be exercised for up to a period of three years.
Shay Ben-Asulin, chairman of m-Wise said, "We are pleased to announce that at the conclusion of this transaction m-Wise's balance sheet is now almost debt free. We see this transaction with a dominant investor like Elron, together with the recent transaction with Syntek, as a major vote of confidence in m-Wise's business strategy and technology."
Mr. Ben-Asulin further noted, "m-Wise's new client wins in the past six months demonstrates the MOMA platform's adaptability in serving as the backbone for content management and delivery on a global level."
About Elron Electronic Industries, Ltd.
Elron is a multinational technology group, which takes an active role in the development and growth of its subsidiaries and affiliates. Since 1962, Elron has been building technology leaders and creating shareholders value through its corporate direction.
Elron activities over the years were a major force in development of defense electronics, communications, semiconductors and medical imaging technologies. In recent years Elron have focused on medical devices, communication, semiconductors and advanced materials.
About m-Wise
Founded in February 2000, m-Wise has rapidly established itself as a leading technology provider with the de facto Service Delivery Platform and related value-added data engines for Mobile Operators, Wireless ASPs, and large content and media providers.
Working closely with leading operators, ASPs and content providers, m-Wise is committed to take the lead and keep up to date with the latest industry headways in areas as diverse as content management and delivery, infotainment, mobile gaming and mobile community services. For more information, please visit www.m-wise.com.
Safe-Harbor Statement
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