Novato, California-based WordStar International Inc signed a memorandum of understanding with Elron Electronic Industries Ltd of Haifa, Israel, providing for an initial $2m investment in WordStar by Elron and allowing it to raise its stake over the next four years. The pact also requires WordStar to establish an Israeli subsidiary to develop and distribute software products worldwide, through WordStar channels but with Elron’s assistance. The first investment option allows Elron to buy an additional $1m of WordStar shares at 20% of the then market price and under the second, it can buy up to $5m more of the shares at $4.00 to $7.00 per share, depending on time of the investment and the ruling price in the market.
