Luxell Announces Closing of Non-Brokered $6.2 Million Financing

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[{"type":"text","content":"\n\n\n\nTORONTO, May 15 /CNW/ - Luxell Technologies Inc. (TSX:LUX) today\nannounced the closing of the non-brokered private placement announced in its\nnews releases of May 2 and 5, 2008 (the "Offering").\n\n\nPursuant to the Offering, the Company has raised $6,191,100 million\nthrough the issuance of units from treasury at $0.10 per unit. Each unit\nconsists of one (1) common share and one-half (1/2) warrant. Each whole\nwarrant entitles the holder to purchase one (1) common share at a price of\n$0.25 per share until the second anniversary of the closing date provided\nthat, if the closing price of the common shares as listed on a recognized\nstock exchange exceeds $0.35 per share for a period of 10 consecutive business\ndays, the expiry date of the warrant will be 30 days from the date of notice\nsent by the Company to the holder.\n\n\nThe Company paid agents an aggregate cash commission of $180,288 plus an\nengagement fee of $25,000. In addition, the Company also granted the agents\n2,590,380 common shares.\n\n\nAssuming all of the warrants are exercised, a maximum of\n92,865,000 common shares will be issued or made issuable pursuant to the\ntransaction representing approximately 145% of the company's issued and\noutstanding common shares on a pre-transaction basis.\n\n\nLuxell will use the net proceeds of the Offering for working capital, for\ncontinued sales growth, to retire $3.75 million of secured Notes and for\ngeneral corporate purposes.\n\n\nSecurities sold under the Offering are subject to a statutory four (4)\nmonth plus 1 day hold period. The Company is relying on the exemption from\nshareholder approval under section 604 (e) of the TSX Company Manual -\nFinancial Hardship.\n\n\nThe following insiders are subscribers to the Offering:\n\n As % of\n Outstanding As % of\nName and Common Shares Outstanding\nPosition (prior to Common Shares\nOf Insider Number of Units Offering)- (post-Offering)\n\nGuilio Vitali 2,100,000 Units 5% 2%\nDirector\n\nJohn MacDonald 4,272,500 Units 6% 3%\nDirector\n\nDavid Pasieka 2,471,000 Units 2% 1%\nDirector\n\n\nThe percentages set forth in the above table assume the exercise by the\ninsider of his warrants.\n\n\nNo new insiders have been created by the Offering, regardless of whether\nthe placees exercise all of their respective warrants. The Offering will have\nno material af...

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