NexgenRx Inc.

NexgenRx Inc.

October 18, 2007 11:06 ET

NexgenRx Completes Convertible Debenture Offering

TORONTO, ONTARIO--(Marketwire - Oct. 18, 2007) - NEXGENRX INC. (TSX VENTURE:NXG) ("NexgenRx" or the "Corporation") is pleased to announce that it has completed its previously announced arm's length non-brokered private placement of convertible debentures ("Debentures"), resulting in gross proceeds to the Corporation of $2 million. The Debentures are to be secured, mature on the date that is three (3) years from the date of issuance (if not otherwise converted) and bear interest at a rate of 8% per annum, which shall be accrued and paid quarterly. The Debentures are convertible into common shares of the Corporation ("Common Shares") at a conversion rate of $0.35 per share at any time prior to maturity and are redeemable at any time after the date that is twelve (12) months from the date of issuance, at a redemption price that is equal to the principal amount and accrued interest outstanding thereunder at the time of redemption, provided that the holder is first given the opportunity to convert the principal amount that is outstanding. The foregoing private placement is subject to receipt of final approval from the TSX Venture Exchange. In accordance with applicable securities laws, the Debentures and any Common Shares issued upon conversion thereof are subject to four-month hold periods that will expire on February 17, 2008.

About NexgenRx

NexgenRx is a growing health benefits management company engaged in the design, management and administration of health benefit plans offered by employers and other plan sponsors for the benefit of their employees and plan members. NexgenRx provides an efficient, cost-effective alternative for Canadian plan sponsors who provide an adminstration services only, or "ASO" health benefit plan to their plan members. NexgenRx also provides a competitive alternative for the provision of health benefit claims adjudication services to third party administrators who manage and administer benefit plans on behalf of a number of plan sponsors and whose services to such plan sponsors include, but are not limited to, the adjudication and payment of health benefit claims made under the plans managed and administered by them.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • NexgenRx Inc.
    Ronald C. Loucks
    President and CEO
    (416) 695-3393 x 801
    (647) 722-2920 (FAX)
    NexgenRx Inc.
    Jeff Dawley
    VP Finance, CFO and Corporate Secretary
    (416) 695-3393 x 803
    (647) 722-2921 (FAX)