Gilat Satellite Networks Ltd. (NASDAQ:GILT, TASE: GILT))) ("Gilat" or the "Company"), a worldwide leader in satellite networking technology, solutions, and services, announced today that it has received and accepted commitments from Israeli institutional investors, as defined under Israel’s Securities Law, 5728-1968 (the "Investors"), to participate in a private placement (the "Private Placement") of convertible notes issued by the Company (the "Notes"). Subject to the terms and conditions of the Notes, the Notes will be convertible into ordinary shares, par value NIS 0.20 per share, of the Company (the "Ordinary Shares").

The gross proceeds from the sale of the Notes are expected to be approximately $100 million, before deducting fees and estimated offering expenses. Gilat intends to use the net proceeds for general corporate purposes, with a particular focus on accelerating investments in next-generation satellite and space technologies, supporting initiatives and the continued expansion of its multi-orbit, mobility, ground and defense technology capabilities.

"This financing further strengthens Gilat’s financial flexibility and provides us with additional capital to accelerate investment in the technologies shaping the future of space and satellite communication," said Adi Sfadia, Gilat’s CEO. "We see significant opportunities across innovative space technologies and multi-orbit connectivity, advanced ground technologies, mobility and defense. This additional capital enhances our ability to invest organically, expand our technology portfolio and pursue opportunities that can broaden our capabilities and addressable markets."

The conversion price will be $16.00 per Ordinary Share, representing a conversion premium of approximately 60% above the last reported sale price of $9.94 per Ordinary Share on the Nasdaq Global Select Market ("Nasdaq") on August 28, 2026. However, if the sale price per Ordinary Share on Nasdaq equals or exceeds $20.00 for 10 consecutive trading days, Gilat may elect, from time to time, to cause the holders of the Notes to convert the Notes (subject to certain limitations), on or after September 1, 2027.

The Notes will be senior unsecured obligations of Gilat and will bear interest at a rate of 3.75% per annum from and including the date of the Closing, with interest payable annually on September 1 of each year, beginning on September 1, 2027. If the sale price per Ordinary Share on Nasdaq does not equal or exceed an average of $15.00 for a consecutive 30-day period ending 18 months after the issuance date (the "Measurement Date"), the interest rate for the period beginning on the Measurement Date will increase by 1.25%. The Notes will mature on September 1, 2031, unless redeemed or converted earlier.

The Private Placement is expected to close on September 1, 2026 (the date of the closing, the "Closing"), subject to the satisfaction of customary closing conditions.