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Luxell Announces Completion of Subscriptions of $1 Million Financing and Decision to wind up LUX OLP
Luxell Announces Completion of Subscriptions of $1 Million Financing and Decision to wind up LUX OLP.
About this update from Newlox Gold Ventures Corp.
[{"type":"text","content":"\n\n\n\nTORONTO, July 5 /CNW/ - Luxell Technologies Inc. (TSX:LUX) is pleased to\nreport that it has closed the first stage of the financing announced in its\npress release of June 4, 2007 and that Kingsmill Capital Partners Inc.\n("Agent") has exercised its over-allotment option for an additional 20%. The\nprivate placement totaling $1,200,000 will close in two stages with the first\nhaving closed on June 29, 2007 for proceeds of $728,400 and the second\nexpected to close on or about July 9, 2007. Proceeds from this financing will\nbe used to meet increasing working capital demands resulting from the recent\ngrowth in sales and production activity.\n\n\nThe financing will see the Corporation issue a maximum of 10,000,000\ncommon shares upon receiving proceeds of up to $1,200,000. As additional\ncompensation, the Corporation will issue to the "Agent", broker warrants\nentitling the Agent to purchase up to 10% of the aggregate number of common\nshares sold under the offering at a price of $0.13 per compensation share\nexercisable for a period of twenty-four months from the date of issuance of\nthe warrants. The Corporation has also agreed to pay to the Agent a cash\ncommission of 7% of the total gross proceeds realized from the offering.\n\n\nAt the same time, the Corporation today announced that a committee of\nindependent directors had reviewed an early windup of the LUX Operating\nLimited Partnership ("LUX OLP"/"Partnership"). The Partnership which was\noriginally announced on November 10, 2005, was a structured transaction\nwhereby the Corporation's patented and non-patented intellectual properties\n("IP") were transferred to LUX OLP and which provided the Corporation with\napproximately $5,000,000 in new working capital. These funds were critical to\nLuxell's on-going operations at that time. Based on a review of the original\ntransaction and that the financing was contingent upon an early windup, the\ncommittee of independent directors determined that an early windup would\nunlock additional and important financing opportunities for the Corporation\nand would also be in the best interests of the Corporation's shareholders. The\nCorporation also confirmed that no additional shares will be issued as a\nresult of the windup.\n\n\nAbout Luxell\n\n\n------------\n\n\nLuxell has i...