MONTVALE, N.J.-Israel-based RDC-Rafael Development Corp. said it will exchange its interest in PowerSpectrum Technology Ltd. for 1.8 million shares of common stock of Geotek Communications Inc.
PowerSpectrum is a joint venture company that holds the rights to commercial application of the Frequency Hopping Multiple Access technology now being deployed by Montvale, N.J.-based Geotek in the northeastern United States.
In addition, RDC has agreed to purchase an additional 338,028 shares of Geotek common stock for $3 million. Upon consummating the transaction, Geotek will own shares representing about 95 percent of PowerSpectrum, a Haifa, Israel-based firm manufacturing the infrastructure for Geotek’s FHMA digital network.
