Greenberg Shneor – Residential Apartments Rental Ltd signed a letter of intent to acquire New Horizon Group Ltd. (TASE:NERZ-L) from Yaakov Ofek, control holder of New Horizon Group and others in a reverse merger transaction on June 28, 2016. According to the letter of intent subject to pre-conditions, New Horizon Group will allot to Greenberg Shneor’s shareholders in exchange for ILS 2 million, shares of New Horizon Group representing after issuance, about 68.7% of New Horizon Group. The debt balance of New Horizon to Yaakov Ofek amounting up to ILS 1.7 million, will be sold to Greenberg Shneor or its shareholders. Additionally, Ofek will sell to the Greenberg Shneor’s shareholders a total of 0.22 million shares of New Horizon which he currently owns, in exchange of ILS 0.71 million. As a result, Ofek will hold about 4.9% of New Horizon Group which may be increased if Ofek participates on the allotment. Greenberg Shneor’s shareholders will grant Ofek with an option to acquire 0.26 million of New Horizon Group ’s shares, valid after two years from completion and for three months, at an exercise price per share of ILS 5.82. New Horizon Group, Greenberg Shneor and the Greenberg Shneor’s shareholders will carry out a due diligence for 30 days from letter of intent. Pre-conditions for completion should be completed within 120 days from the letter of intent, and are as follows: due diligence completion, court’s approval, approval from the corporate organisms of Greenberg Shneor and New Horizon, commencement of validity of the RUN OFF insurance policy, capital unification of New Horizon’s capital, cancellation of the management agreement and the lease agreement between New Horizon and entities owned by Ofek.