Warning regarding forward-looking information - The aforementioned assessments regarding the discovery of significant oil marks and other aspects relating to drilling are based on information, estimates and hypotheses received from the operator, including on the basis of the tests carried out as aforementioned above, and are forward-looking information. The aforementioned estimates and hypotheses are based, inter alia, on engineering, economic, geological, geophysical and other information, received from the operator and about which there is no certainty. The Company has not carried out an independent evaluation or examination of the assessments and hypotheses, does not express a position regarding their accuracy, and they may be updated as additional information accumulates and/or as a result of a combination of factors related to the project.
..." (Hereinafter: Report dated September 8, 2013) [emphases in original, M.R.]
- On September 16, 2013, the company published another report titled "Details regarding the plan to carry out production tests in the "Yam 3" drilling in the area of license 387 / oil". As part of this report, the company provided details regarding the plan to conduct production tests shortly after the report, noting that the estimated budget for conducting production tests is approximately US$24.4 million. It was also reported that as of that date, the company did not have sufficient financial means to finance its full share of the estimated budget, and that it would need additional sources that it believes will be able to raise through a private allocation or the sale of up to 5% of the rights in the license.
On September 22, 2013, Shemen published a report on "private offers for the allocation of 'blocked shares.'" Shemen reported that on September 21, 2013, it entered into agreements with institutional entities and allocated them 'blocked shares' as part of a private offering. The company reported that the sums it receives are expected to complete the financing of its part of the estimated budget for conducting production tests. On September 23, 2013, Shemen reported additional private offerings in which blocked shares would be allocated to additional investors. The Company reported that the Company's Board of Directors approved the engagement in the aforementioned agreements (hereinafter: the report dated September 22, 2013 and the report dated September 23, 2013, respectively, Appendix 3 to the plaintiff's affidavit).