PETACH-TIKVA, Israel, July 24, 2017 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today it received an order from a governmental authority for a project that includes, among other things, manufacturing and procurement in an amount of up to approximately US$ 3 million.

The execution of the project will extend over a period of two years, during which Eltek will be required to meet quarterly milestones. The customer has an option to extend the project for an additional twelve month period, during which Eltek will be required to meet additional quarterly milestones.

Payments to Eltek shall be made on a quarterly basis, subject to the fulfillment of each milestone. The project is expected to generate total aggregate revenues of approximately US$ 2.1 million (approximately US$ 3 million if the option is exercised). In addition, to enable the execution of the project, the costumer shall lend the Company, for no consideration, equipment in a total aggregate amount of approximately US$ 1.8 million (approximately US$ 2 million if the option is exercised).

The customer may terminate the project on its first anniversary, but will be required to reimburse Eltek for its direct costs and expenses with regard to the project until such termination.

The Board of Directors has authorized the company to receive bridge financing as may be required to finance part of the project through a bank loan of up to NIS 4,500,000, to be guaranteed by Nistec Ltd., its controlling shareholder.

Mr. Yitzhak Nissan, Chairman of the Board and Chief Executive Officer, commented: "The selection of Eltek by this customer attests to the trust in the Company's technological capabilities. We believe that this order will advance our competitiveness and brings us a step closer to increasing the number of orders from this customer and from additional costumers that value the quality and high reliability of our printed circuit boards".

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