On January 24, 2018, Formula Systems (1985) Ltd. reported to the Israeli Securities Authority and the Tel Aviv Stock Exchange that it has entered into agreements with qualified investors in Israel for the private placement to those investors of an additional, aggregate ILS 150 million principal amount of the company’s non-convertible, secured Series A Debentures, at a price of ILS 1,034.7 for each ILS 1,000 principal amount. The total aggregate gross proceeds to be received by the Company from the investors will be ILS 155.2 million. The additional debentures will be sold by means of an increase in the outstanding principal amount of Series A Debentures, which series was initially offered publicly on September 10, 2015, under a shelf offering report pursuant to Formula’s Israeli shelf prospectus, dated August 7, 2015, as amended on September 3, 2015, the effectiveness of which has been extended until August 6, 2018. As a result of the Private Placement, the total outstanding principal amount of the Series A Debentures will increase to approximately ILS 239.5 million. The Series A Debentures to be sold in the Private Placement will be subject to the terms of the Deed of Trust, entered into on September 3, 2015, by and between Formula, as the issuer of the debentures, and Reznick Paz Nevo Trusts Ltd., as trustee on behalf of the debenture holders. The terms of the Series A Debentures to be sold in the Private Placement will be identical in all respects to those of the Series A Debentures sold in Formula’s September 2015 public offering under the Israeli Shelf Prospectus. The terms of Formula’s two series of debentures were previously described in the Company’s Report of Foreign Private Issuer on Form 6-K furnished to the Securities and Exchange Commission on September 16, 2015. The content of that Form 6-K is incorporated by reference herein. The consummation of the Private Placement is subject to the approval by the TASE of the listing, on the TASE, of the Series A Debentures to be sold, and final approval from Formula’s board of directors.