TORONTO, March 30 /CNW/ - Luxell Technologies Inc. (TSX:LUX) ("Luxell") has received conditional approval from the Toronto Stock Exchange (the "TSX") for a non-brokered private placement (the "Offering") of up to $3,750,000 in series A notes (the Notes"). The Notes will have an initial term of 6 months from the date of issue which can be extended at the option of Luxell for a further 3 months.
The Notes will bear an interest rate of 6% per annum and will also contain provisions for the payment of a bonus (the "Share Bonus") through the issuance of common shares in the capital of Luxell ("Common Shares") equal to 40% of the value of the Notes per annum. The cash interest will be paid quarterly in arrears and the share bonus will be paid quarterly based on the 5-day weighted average trading price of the Common Shares on the TSX for the five trading days preceding the date on which the Share Bonus is payable. The number of Common Shares issued in connection with the Share Bonus will not exceed 11,178,415 unless prior regulatory approval is received. Insiders may participate in the Offering but at no time will the number of Common Shares issuable to insiders under the Offering exceed 10% of the current issued and outstanding common shares of Luxell.
The funds received by Luxell will be used to first pay existing debt, to refinance currently outstanding debt, with the balance of approximately $900,000 to be applied toward Luxell's business development, production operations and general working capital.
In connection with the Offering Luxell will pay a finders' fee equal to 3% of the gross proceeds of the Offering through the issuance of Common Shares.
Concurrent with this announcement, Luxell reports that order completion and shipments are continuing and that Luxell has recently received repeat and new orders from three existing customers for Maintenance Data Panels, large format display units for land defence applications and Loadmaster prototype variants. Additionally, decisions are pending on another $1.5M in short-term proposals from other current customers.
Luxell also confirms that its Annual and Special Meeting will be held on May 7, 2007. Complete details will be included with the shareholders material mailing scheduled to be sent out on or about April 9, 2007.
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.
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