TORONTO, July 18 /CNW/ - Luxell Technologies Inc. (TSX: LUX) (the "Corporation") is pleased to announce the closing of the final tranche of its previously announced private placement financing. The Corporation's press release of July 5, 2007 reported that Kingsmill Capital Partners Inc. (the "Agent") had exercised its over-allotment option to increase the aggregate offering by an additional 20% to a total of $1,200,000, and that the first tranche of the private placement had closed on June 29, 2007 for proceeds of $782,400. The second tranche of the private placement, being announced today, saw the Corporation issue an additional 3,930,000 common shares for total additional proceeds of $471,600. Proceeds from this financing will be used to meet increasing working capital demands resulting from the recent growth in sales and production activity.
The Corporation has issued an aggregate of 10,000,000 common shares from the closing of the first and second tranches of this financing, and also issued to the Agent broker warrants entitling the Agent to purchase up to 1,000,000 common shares at a price of $0.13 per common share exercisable for a period of twenty-four months from the date of issuance of such warrants. The Corporation also paid to the Agent a cash commission of 7% of the total gross proceeds realized from the offering.
The Corporation also reports that Mr. Max Rutherford has advised the Corporation that he would be unable to accept election to the Corporation's Board of Directors due to conflicts between his forthcoming schedule and the Board's 2007-2008 schedule of meetings and committee requirements. As a result, at the present time, the Corporation's Board of Directors is comprised of six directors, being Anthony DeCristofaro, David Pasieka, John MacDonald, Dr. Robert Bajcar, Giulio Vitali and Christopher Carl.
About Luxell Technologies Inc.
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The Corporation has its origins in the research and development of optical improvement technologies (contrast enhancement) known collectively as the Black Layer(TM) Technology. Application of this technology is in Flat Panel Display (FPD) devices. These devices are used in a wide array of products requiring outdoor or ambient sunlight conditions and usually in a rugged environment. To date, the Corporation has concentrated on aircraft and ground vehicle installations in the defense industry in North America and Europe.
The Corporation's products can already be found in aircraft built by Boeing, Airbus and McDonnell Douglas and direct sales contracts have been and are being executed with Tier 1 companies (integrators) that supply OEM parts to aircraft manufacturers such as Northrop Grumman-Lital and Rheinmetall in Europe and Lockheed Martin in North America.
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