TORONTO, May 22 /CNW/ - Luxell Technologies Inc. (TSX:LUX) announced that its Annual Meeting held on May 17, 2007 has been adjourned to Monday June 4, 2007, to be held at 5 pm at the offices of WeirFoulds LLP, 15th Floor, Exchange Tower, 130 King Street West, Toronto.
The Board of Directors of Luxell Technologies Inc. ("Luxell") decided to adjourn the Annual Meeting in order to address potential perceived conflict issues in a proposed transaction that essentially unwinds an ongoing arrangement involving LUX Operating Limited Partnership ("LUX OLP"), being a structured transaction which was closed and originally announced on November 5, 2005. In particular, the Board wanted to consider whether Mr. John MacDonald, the Chair of the Board of Directors of Luxell, had a conflict of interest in any proposed transaction involving LUX OLP and whether the Board would be better served in considering any transaction with LUX OLP to have Mr. MacDonald voluntarily step aside as Chairman, at least for the remainder of the period that LUX OLP is negotiating terms with Luxell. The Board felt the adjournment provided an opportunity for all involved in Luxell's management and operations to fully address the issues.
The unwinding of the transaction between LUX OLP and Luxell is being considered because, if completed, it would remove any uncertainty about potential future liability of Luxell to LUX OLP. Once this is completed, it could make Luxell more attractive for raising new equity capital during a period of growth and increased working capital requirements.
Mr. MacDonald stated, "The decision to adjourn was not an easy one but at the very time when we are seeing very promising operating results within our company, we do not want to take any step that could potentially hinder our recent growth or that could slow down our ability to raise new funds for working capital to support that growth. The adjournment of the meeting resulted in only a brief delay and will allow Luxell to proceed in the most responsible manner possible."
About Luxell
Luxell designs, manufactures and licenses flat panel display technologies and solutions for defence and avionics industries. More information can be found at www.luxell.com.
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