TORONTO, June 24 /CNW/ - LOREX Technology Inc. ("LOREX" or the "Company")
(TSX: LOX) is pleased to announce that is has agreed to the issue of a minimum
of $1.6 million and a maximum of $2 million principal amount secured
subordinate series A convertible debentures (the "Debentures") pursuant to a
The Debentures, which will be issued to an arm's length party, shall have
the following features:
- convertible into common shares in the capital of the Company at a
conversion price of $0.10 per share resulting in the issuance of a
minimum of 16,000,0000 and a maximum of 20,000,000 common shares;
- have a term of 36 months and shall have no interest; and
- secured against all the assets of the Company, but shall be
subordinate to the Company's senior secured credit facilities.
The subscriber to the Debentures would be entitled to nominate one (1)
person to the Company's Board of Directors and to separately nominate one
Board observer. The issuance of the Debentures is conditional on the investor
completing due diligence to its satisfaction and the Company receiving TSX and
Proceeds from the private placement will be used for general working
capital and to satisfy the 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, 2012.
Closing is scheduled for June 30, 2009 or such other day that the
investor, the Company and its lender may agree to.
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.
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 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
For further information:
For further information: Adam Levin, Director, LOREX Technology Inc.,
Phone: (216) 595-9828 ext 105, www.lorextechnology.com