TORONTO, Sept. 22 /CNW/ - LOREX Technology Inc. (the "Company") (TSX: LOX) announces that as a result of a change in the primary lender's position with Lorex the investors will not be proceeding with the $1.25 million CDN principal amount secured subordinate series A convertible debentures (the "Debentures"). The investors have informed the Company that they are committed to working with the Company and wish to continue and expand their relationship with the Company, the terms of which will be negotiated between the parties.
The termination of the issuance of the Debentures was a result of the Company being informed by its lender that the resignation of Mr. Schurbach will become a default under its current credit facilities and as such the Company will have thirty (30) days to find a CEO replacement acceptable to the lender, or 120 days to find a replacement primary lender. The Company has decided to pursue alternative options including replacing the current lender. In addition, the investors have informed the Company that they will make available funds as required by the Company, the terms of which will be negotiated between the parties.
As a result of the lender's position, the investors have deemed that the issuance of the Debentures will not be in the best interest of the Company. The cancellation of the issuance of the Debentures has resulted in the lender advising the Company that it will not be waiving the current defaults under the credit facility.
The Company continues to conduct its business in the ordinary course and is confident that a replacement lender will be procured in due time, and negotiations have already commenced on that basis, although there can be no assurance that one can be found on terms acceptable to the Company.
About LOREX Technology Inc.:
LOREX provides businesses and consumers with leading edge video surveillance security solutions and sells its products through distinct market channels under the LOREX and Digimerge brands. The LOREX brand, which caters to both small business and consumer markets, is available in over 9,000 retail locations across North America and the U.K. and has an established market presence online selling through major e-tailers and through its in-house webstore. The Digimerge division distributes its products through major distributors in both North America and Europe. Both groups concentrate on the sale of wired, wireless and IP security surveillance equipment including cameras, digital video recorders and all-in-one systems.
LOREX subsidiaries include; LOREX Canada Inc., Digimerge Technologies Inc., LOREX Corporation and Strategic Vista Corporation Limited, Hong Kong.
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adequacy or accuracy of this release.
Certain information included in this news release contains statements that are forward-looking, such as the statements about financing alternatives. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the Company. Full financial statements along with Management's Discussion and Analysis can be obtained from SEDAR at www.sedar.com
SOURCE LOREX Technology Inc.
For further information: For further information: Adam Levin, Director, LOREX Technology Inc., Phone: (216) 595-9828 ext 105, www.lorextechnology.com