TORONTO, March 4 /CNW/ - Luxell Technologies Inc. (TSX:LUX) (the "Corporation") announced that it has decided to exercise Luxell's option to convert promissory notes issued to creditors. In accordance with the terms of the notes, the aggregate principal amount of $1,381,947 will be converted to approximately 3,454,868 common shares of the Corporation at a price of CDN$0.40 per common share, subject to regulatory approval. The shares will be subject to a hold period of 4 months plus 1 day.
In addition, Luxell has written down to $263,364 a government loan note in the principal amount of $957,761, in accordance with the terms of this note. The write down of this note will produce a gain on restructuring of $694,377 in the second quarter. The Company's Board of Directors has authorized management to meet with government officials to resolve the outstanding amount of $263,364.
Jean Louis Larmor, CEO of Luxell commented, "Luxell has made substantial headway in advancing our ruggedized display business and in executing our strategic initiatives, particularly over the last 5 months. While tangible progress is being made, we have not yet fully realized the substantial benefits we expect to see from our actions and the substantial range of new business proposals to existing and prospective customers over the last 90 days. We expect that this improvement in our balance sheet will also assist the company in growing its market position and achieving our objectives."
About Luxell
Luxell designs, manufactures and licenses flat panel display technologies and product solutions for the aerospace and defense sectors. Luxell is an ISO certified company. More information can be found at www.luxell.com. (C) Luxell Technologies Inc., Luxell and Black Layer are trademarks of Luxell Technologies Inc. All other company and/or product names are trademarks and/or registered trademarks of their respective manufacturers.
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