Business
Luxell Announces Windup of Limited Partnership and New Working Capital Financing Agreement
TORONTO, Jan. 10 /CNW/ - Luxell Technologies Inc. (TSX:LUX) (the "Company" or "Luxell") announced...
About this update from Newlox Gold Ventures Corp.
[{"type":"text","content":"\n\n\n\nTORONTO, Jan. 10 /CNW/ - Luxell Technologies Inc. (TSX:LUX) (the\n"Company" or "Luxell") announced today that it has completed and closed the\npreviously announced windup of the 2005 transaction whereby the Company's\npatented and non-patented intellectual properties ("IP") were transferred to\nLux Operating Limited Partnership (the "Lux Partnership") in exchange for\npromissory notes and cash. The structured transaction provided the Company\nwith approximately $5,000,000 in new working capital.\n\n\nThe 2005 transaction agreement included an option for Luxell to\nre-acquire the transferred IP at the then-prevailing fair market value ("FMV")\nafter the end of 2007. An agreement to exercise the option, wind up the Lux\nPartnership and to return the IP to Luxell was approved by the independent\nmembers of the Board of Directors on July 10, 2007 following an independent\nappraisal of the value of the Lux OLP Units. Approval of this transaction was\nconsidered essential for Luxell to be able to raise critically required equity\nin July 2007 and allow for further conventional financing as the company\ncontinues to grow its sales.\n\n\nThe windup was accomplished without any cost to the Company as the Lux\nOLP Units were exchanged for the Promissory Notes outstanding. The return of\nthe IP will result in a significant tax benefit to the corporation in the form\nof future Capital Cost Allowance which do not expire.\n\n\nNew Working Capital Facility\n\n\nAdditionally, the Corporation today announced that it has reached a\nfinancing agreement with Mercantile Finance Services Ltd., based in Toronto,\nto provide working capital financing supported through the Export Development\nCorporation. Under this facility, which can be expanded as sales increase,\nLuxell will have ready access to working capital for inventory purchases and\naccounts receivable financing for orders originating outside of Canada.\n\n\nJean-Louis Larmor, CEO of Luxell, commented "We are pleased to have\ncompleted this wind up as it improves the Company's ability to attract more\nconventional forms of both equity and working capital financing by returning\nownership of our IP directly to Luxell and by simplifying our capital\nstructure."\n\n\nAbout Luxell\n\n\nLuxell designs, manufactures and licenses fl...