TORONTO, March 5 /CNW/ - Luxell Technologies Inc. (TSX:LUX) (the "Corporation") is pleased to announce that it intends to proceed with a non-brokered private placement of units ("Units") in the capital of the Corporation. Each Unit is comprised of one (1) common share in the capital of the Company ("Common Share") and one half (1/2) Common Share Purchase Warrant ("Warrant"). Each whole Warrant entitles the holder to purchase one (1) Common Share at a price of $0.25 for a period of two (2) years from the Closing Date. The Units will be subject to a 4-month plus one day hold period.
In addition, the Corporation is pleased to announce that it intends to proceed with a rights offering to shareholders of Luxell. Each shareholder who is an accredited investor would receive the right to subscribe for 1.25 Units for each Luxell share that they own as of the Record Date, and would have an additional subscription privilege to subscribe for any Units not taken up on the exercise of rights.
The other details of the private placement and the rights offering will be determined by the Board of Directors of Luxell prior to filing the final rights offering circular. Luxell will use net proceeds from the offerings for working capital for continued sales growth, to retire the debt recorded on the balance sheet as $3.75 million of Notes and for general corporate purposes.
The private placement and rights offering is subject to regulatory approval, including that of the Toronto Stock Exchange. Rights certificates will not be delivered to shareholders who are resident in provinces other than British Columbia, Alberta, Manitoba, Ontario or Quebec, or who are resident of jurisdictions outside of Canada. Notwithstanding the foregoing, ineligible shareholders who establish, to the satisfaction of the Company, that the receipt by them of rights and the issuance to them of shares upon the exercise of the Rights will not be in violation of the laws of the jurisdiction of their residence will be allowed to exercise the rights.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any province, state or jurisdiction, including the United States, in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.
About Luxell
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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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