TORONTO, July 5 /CNW/ - Luxell Technologies Inc. (TSX:LUX) is pleased to report that it has closed the first stage of the financing announced in its press release of June 4, 2007 and that Kingsmill Capital Partners Inc. ("Agent") has exercised its over-allotment option for an additional 20%. The private placement totaling $1,200,000 will close in two stages with the first having closed on June 29, 2007 for proceeds of $728,400 and the second expected to close on or about July 9, 2007. Proceeds from this financing will be used to meet increasing working capital demands resulting from the recent growth in sales and production activity.
The financing will see the Corporation issue a maximum of 10,000,000 common shares upon receiving proceeds of up to $1,200,000. As additional compensation, the Corporation will issue to the "Agent", broker warrants entitling the Agent to purchase up to 10% of the aggregate number of common shares sold under the offering at a price of $0.13 per compensation share exercisable for a period of twenty-four months from the date of issuance of the warrants. The Corporation has also agreed to pay to the Agent a cash commission of 7% of the total gross proceeds realized from the offering.
At the same time, the Corporation today announced that a committee of independent directors had reviewed an early windup of the LUX Operating Limited Partnership ("LUX OLP"/"Partnership"). The Partnership which was originally announced on November 10, 2005, was a structured transaction whereby the Corporation's patented and non-patented intellectual properties ("IP") were transferred to LUX OLP and which provided the Corporation with approximately $5,000,000 in new working capital. These funds were critical to Luxell's on-going operations at that time. Based on a review of the original transaction and that the financing was contingent upon an early windup, the committee of independent directors determined that an early windup would unlock additional and important financing opportunities for the Corporation and would also be in the best interests of the Corporation's shareholders. The Corporation also confirmed that no additional shares will be issued as a result of the windup.
About Luxell
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Luxell 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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