Business
MedX Health Corp. Announces Private Placement
Formation of MedX Health Financing Limited Partnership Maximum subscription: $2,500,000 MISSISSAU...
About this update from Medx Health Corp.
[{"type":"text","content":"\n\n\n\n Formation of MedX Health Financing Limited Partnership\n\n Maximum subscription: $2,500,000\n\n\nMISSISSAUGA, ON, July 14 /CNW/ - MedX Health Corp. ("MedX Corp.")\n(TSXV.MDX), a global leader in drug free, non-invasive low level laser and\nlight therapy for tissue repair and pain relief, announced today that, subject\nto TSX Venture Exchange approval, it plans to form a limited partnership, MedX\nHealth Finance Partnership ("MedX LP"). The general partner of MedX LP will be\na wholly-owned subsidiary of MedX Corp. incorporated for this purpose. The\nterm of MedX LP is expected to end on December 31, 2019. MedX Corp. is\nexpected to make an offer in 2013 to acquire all the MedX LP units outstanding\nat that time at fair market value, as determined by an independent firm of\nCanadian chartered accountants, in exchange for common shares of MedX Corp. at\na price based on the average trading price of MedX Corp.'s common shares over\n20 trading days.\n\n\nPursuant to the terms of a royalty agreement to be entered into between\nMedX LP and MedX Corp., MedX LP will market all of MedX Corp's.light-related\nproducts. MedX LP will receive 100% of the revenue from all global sales of\nthese products and will pay MedX Corp. a 10% royalty fee on gross sales of the\nproducts. Pursuant to the terms of the management services agreement to be\nentered into between MedX LP and MedX Corp., MedX LP will use these revenues\nto pay MedX Corp. all of its costs associated with the manufacturing and sale\nof the products plus an annual incentive fee. The annual incentive fee shall\nbe calculated based on 15% of sales until net income is achieved, and after\nnet income is achieved it will be based on a percentage of net income ranging\nfrom a low of 0% for net income below $1 Million to a high of 80% for net\nincome exceeding $ 8 Million. MedX Corp. will provide MedX LP with management,\nadministrative, and marketing services, plus customer lists under the terms of\nthe management services agreement.\n\n\nMedX LP and MedX Corp. plan to sell by non-brokered private placement up\nto 2,500 units ("Units") to qualified investors at a price of $1,000 per Unit,\neach Unit being comprised of one limited partnership unit in MedX LP and one\nthousand warrants to purchase common shares of MedX Corp., with first closing\noccur...