Lorex announces CDN $1.6 million private placement

    TORONTO, June 5 /CNW/ - LOREX Technology Inc. ("LOREX" or "the Company")
(TSX: LOX) announced today that it has entered into a private placement
agreement valued at CDN $1.6 million. The agreement would result in a
subscription of 20,000,000 common shares of the Company at a price of CDN$0.08
per share.
    The subscription agreement is scheduled to close on or before June 15th,
2009. Lorex intends to rely on the financial hardship exemption from the
Toronto Stock Exchange requirement for shareholder approval. The private
placement is conditional on TSX approval being obtained, and there is no
assurance that it will be granted.
    The terms of the private placement were reviewed and approved by an
independent committee of the board of directors of Lorex that was established
in order to review financial alternatives presented to Lorex. The independent
committee retained a financial advisor to assist it, and has received
financial advice on the terms of the placement.
    Henry Schnurbach commented "The increased liquidity will provide the
Company the support to allow the business to continue with its momentum of
growth and LOREX will be in a position to allocate the funding to support its
sales potential. The new Investor should provide industry support and offer
guidance to new opportunities, as having had years of experience in the retail
environment in both Canada and the United States."
    The agreement's subscriber has included in the agreement the condition to
review to the subscriber's satisfaction the current lending agreements. The
agreement, which is conditional upon settlement of a definitive subscription
agreement, was made by the Company in order to comply with a requirement by
its current lender to raise a minimum of US$1 million by June 30th, 2009. By
raising the funds, the Company will also secure a loan extension through May,
    The Company intends to use the net proceeds of the subscription to
support general working capital requirements. Further funding may be required
to support these requirements in the future.

    About LOREX Technology Inc.:

    LOREX Technology Inc. ('LOREX') (TSX:LOX) 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.

    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this release.

    Certain information included in this news release contains statements
that are forward-looking, such as the statements about the proposed private
placement. 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 an
Analysis can be obtained from SEDAR at www.sedar.com

    %SEDAR: 00008315E

For further information:

For further information: Jordan Schwartz, Chief Financial Officer, LOREX
Technology Inc., Phone: (905) 946-8589 ext 168, jordan.schwartz@lorexcorp.com,

Organization Profile

LOREX Technology Inc.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890