By Devika Patel
Knoxville, Tenn., Sept. 22 - Lorex Technology Inc. said it will not complete the remaining C$1.25 million tranche of a C$2.5 million private placement of subordinate series A convertible debentures and subscription receipts. The deal priced on June 24 and the company completed a C$1.25 million tranche on Sept. 14.
The company sold 12.5 million subscription receipts at C$0.10 for C$1.25 million on Sept. 14. The receipts are convertible, at no additional cost, into 12.5 million preference shares, which will be convertible into common shares on a one-for-one basis.
Lorex had also planned to sell C$1.25 million of three-year debentures, but the investors have backed out of this tranche.
Proceeds will be used for general working capital. By raising the funds, the company will also secure a loan extension through May 2012.
Lorex is a Markham, Ont.-based company that provides businesses and consumers with video surveillance security solutions and sells its products through two market channels.
| Issuer: | Lorex Technology Inc.
|
| Issue: | Subscription receipts
|
| Amount: | C$1.25 million
|
| Receipts: | 12.5 million
|
| Price: | C$0.10
|
| Warrants: | No
|
| Pricing date: | June 24
|
| Settlement date: | Sept. 14
|
| Stock symbol: | Toronto: LOX
|
| Stock price: | C$0.09 at close June 23
|
| Market capitalization: | C$2.17 million
|
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