Business
Luxell Technologies Inc. announces structured financing with Lux Operating Limited Partnership
Luxell Technologies Inc. announces structured financing with Lux Operating Limited Partnership.
About this update from Newlox Gold Ventures Corp.
[{"type":"text","content":"\n\n\n\n\nTORONTO, Nov. 11 /CNW/ - Luxell Technologies Inc. (TSX:LUX) (the\n\"Company\" or \"Luxell\") announced today that it has completed a transaction\nwhereby the Company's patented and non-patented intellectual properties (\"IP\")\nwere transferred to Lux Operating Limited Partnership (the \"Lux Partnership\")\nin exchange for promissory notes and cash. The structured transaction will\nmake available approximately $5,000,000 in new working capital. In addition,\nLuxell issued 1,772,800 common share warrants.\nThe structured transaction will provide the funds necessary to execute\nthe Company's five-point business plan. The plan's principal objective is to\nbring the Company to profitability in fiscal 2006 and position the Company to\nexploit its Black Layer(TM) technology as the organic light emitting diode\nmarket moves to commercialization in 2007 or 2008. This investment comes at a\ncritical period in the Company's development and provides it with the\nresources needed to pursue newly emerging Black Layer(TM) technology business\nopportunities and pursue new production contracts for the Aktelux display\ndesign and engineering division.\nIncluded in the agreement is an option for Luxell to re-acquire the\ntransferred IP at the then-prevailing fair market value (\"FMV\") by or before\nDecember 31, 2008. Common shares of Luxell will be issued at the then-\nprevailing market price to re-acquire the transferred IP only to the extent\nthat the FMV of the transferred IP exceeds $26,000,000. The number of common\nshares issued cannot exceed 20% of the then-outstanding common shares, and any\nexcess amounts owing on the re-acquisition of the IP will be paid through the\nissuance of a debenture. The debenture will bear interest at 8% for the first\nfive years of its term and is convertible into shares of Luxell upon\nshareholder approval. It is the Company's plan to re-acquire the IP in 2008.\nIntegral to the agreement with Lux Partnership is the Company's continued\nbusiness development of the Black Layer(TM) technology and its display design\nand engineering expertise. A goal of both the Company and Lux Partnership is\nto have Luxell exercise the option to re-acquire the transferred IP within a\nperiod of 28 months. The transaction has received the required regulatory\napproval.\nPursuant to the transaction, the Company announc...