VANCOUVER, March 23 /CNW/ - Monexa Technologies Corp. (TSX-Venture: MXA) ("Monexa" or the "Company") is pleased to announce a non-brokered private placement of a total of 416,761 of 10% convertible preferred shares (the "Shares") of the Company at a price of $0.12 per Share (the "Offering") for gross proceeds of $50,000. The Company will issue 200,044 common share purchase warrants (the "Warrants") in connection with the Offering, each of which will entitle the investor to acquire a common share of the Company at a price of $0.36 until August 7, 2014.
Investors will be entitled to an annual cumulative cash dividend of 10% of the issue price of the Shares, payable in cash in arrears on December 31 of each year. The Shares will be convertible at the investor's option into common shares of the Company on a 1:1 basis. After February 7, 2011, the Company may elect to convert the Shares into common shares if: (a) the closing price of the common shares is at a price greater than $0.40 per share for a period of 30 consecutive trading days; and (b) the total trading volume over such period is greater than 20% of the common shares issued and outstanding at the beginning of such period, excluding all common shares of the Company held by Pender Growth Fund (VCC) Inc. and by Pender Financial Group Corporation. The Shares will be redeemable at the original issue price, plus accrued and unpaid dividends, on or after August 7, 2014. Investors will have a pro-rata right to participate in subsequent equity or debt financings, to maintain their percentage equity ownership of the Company.
The Offering is subject to the approval of the TSX Venture Exchange. The Closing is expected to occur on or about March 26, 2010. The Shares, and any common shares issued on conversion thereof, as well as any warrant shares issued on exercise of the Warrants, will be subject to a four month hold period.
Monexa intends to use the net proceeds for working capital necessary to advance development and marketing initiatives in respect of the rapidly expanding subscription billing market.
About Monexa Technologies Corp.
Monexa offers a flexible on-demand subscription billing solution that provides a fast and scalable environment for expediting the launch of products, services and applications online. This accelerates our customers' time to market and revenue return.
Monexa pioneered the on-demand subscription billing space and has worked with hundreds of businesses to help monetize their services. Having the most capable and open subscription billing solution in the cloud, combined with proven billing industry expertise, sets Monexa apart from other service providers. Monexa's customers range in size from high growth SaaS and Cloud Infrastructure companies like Untangle and ActiveState to large-scale enterprises like Pitney Bowes, AOL Canada, Sprint, Amway and Bell Mobility. For more information visit http://www.monexa.com.
This news release contains forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties, including changes in financial and product market conditions. Forward-looking statements are based on management's estimates, beliefs, and opinions. The Company assumes no obligation to update forward-looking statements, other than as may be required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE MONEXA TECHNOLOGIES CORP.
For further information: For further information: John Bean, CFO, D (604) 630-5657, E firstname.lastname@example.org