TORONTO, May 1 /CNW/ - Luxell Technologies Inc. (TSX:LUX) ("Luxell") today announced it successfully closed a non-brokered private placement (the "Offering") of $3,750,000 in series A notes (the "Notes"). The Notes have an initial term of 6 months from the date of issue which term can be extended at the option of Luxell for a further 3 months.
The Notes bear an interest rate of 6% per annum which will be paid in cash quarterly in arrears. An additional amount of 10% per quarter will be paid through the issuance of common shares in the capital of Luxell ("Bonus Shares") based on the 5 day weighted average trading price of the common shares on the TSX for the five trading days immediately preceding the end of each quarter.
A finder's fee of 3% was paid through the issuance of 750,000 shares at a price of $0.15 per share. The common shares issued in connection with the finders fee are subject to a 4 month resale restriction.
The funds received by Luxell will be used to first pay existing debt, to refinance currently outstanding debt, with the balance to be applied toward Luxell's business development, production operations and general working capital.
"This successful close, demonstrates investor confidence in the potential success of our strategic plan and the progress we have achieved against our plan," said Alec Couckuyt, President and Chief Executive Officer of Luxell.
Luxell also confirms that its Annual and Special Meeting will be held on May 14, 2007. Complete details have been included with the shareholders material mailing or can be obtained by contacting the Company directly.
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. (C) Luxell Technologies Inc. All other company and/or product names are trademarks and/or registered trademarks of their respective manufacturers.
%SEDAR: 00008266E