FreshXtend Technologies Corp.

FreshXtend Technologies Corp.

May 08, 2008 14:33 ET

FreshXtend Announces Restructuring Changes and 2 Financings Closed

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 8, 2008) - FreshXtend Technologies Corp. (TSX VENTURE:FXT) ("FreshXtend" or "the Company") announces that, as a result of the successful launch of NatureSeal, Inc. and AgriCoat NatureSeal Limited as announced on April 4, 2008, the Company has undertaken a review of its ongoing operations and in particular, its staffing requirements. As the activities previously undertaken by the Company in connection with its antioxidant business are now being carried out by employees of NatureSeal, Inc. and AgriCoat NatureSeal Limited, the Company will be downsizing and eliminating a significant number of current positions.

Going forward, the Company anticipates it will be placing an emphasis on its long established FreshSpan technology as the basis for its ongoing operations. The Company is exploring a number of opportunities for the FreshSpan technology in the Asian markets, particularly in China, and in Europe. Meanwhile, the Company is continuing a review of its core businesses to determine what further changes, if any, may be advisable.

The Company is pleased to announce it has closed the first tranche in the amount of US$600,000 of the private placement of secured convertible notes announced on March 26, 2008. The notes bear interest at the rate of 8% per annum and have a term of five years.

The notes may be converted at any time, at the option of the holder, into common shares of the Company. The conversion rate is 13 common shares for each US$1.00 converted in the first two years, 11 common shares for each US$1.00 in the third year, 10 common shares for each US$1.00 in the fourth year and 9 common shares for each US$1.00 in the fifth and final year. The Company may repay the principal amount of the convertible notes, together with accrued and unpaid interest, at any time, without penalty, upon not less than 15 days notice to the holders. Interest on the convertible notes is payable semi-annually in cash or shares, at the option of the holder. Shares issued to pay interest would be issued at the market price at the time of issuance. The convertible notes are secured by the Company's shares in NatureSeal, Inc. and AgriCoat NatureSeal Limited.

Gibsbourne Pty Limited, an existing shareholder holding 10% or more of the Company's issued and outstanding shares, acquired the convertible notes for US$600,000 under this private placement. The convertible notes and the underlying shares issuable on conversion of the notes, are subject to a hold period until August 1, 2008.

The Company also announces the closing of the private placement of 3,500,000 common shares at a price of US$0.08 per share, for proceeds of US$280,000, to Gibsbourne Pty Limited. This private placement was also announced on March 26, 2008. The common shares are subject to a hold period until July 29, 2008.

The proceeds from the two private placements will be used to assist the Company's contributions to NatureSeal, Inc. and AgriCoat NatureSeal Limited, and to provide the Company with additional working capital. No finder's fee or commission was payable in connection with these private placements.

The Company also announces that the 2008 Annual General Meeting has been scheduled to be held on June 3, 2008. The Notice of Meeting, information circular and proxy material has been mailed to all registered shareholders and posted on Sedar.

FreshXtend Technologies Corp.,

R.W. Robinson, Director

FreshXtend Technologies Corp. is a leading provider of life extension technology to the high-growth fresh produce and flower industry. FreshXtend's patented technologies naturally place produce in a state of hibernation while it is being shipped and extend the shelf-life of fresh produce, flowers and juices. FreshXtend is based in Vancouver, British Columbia and has a network of R&D relationships, which include the University of British Columbia.

Trading symbol: FXT (TSX-V)

Manual Listing S & P's Industrial & Int'l, 12g (3)b Exemption: #82-2190

The statements in this news release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934 and are subject to the safe harbour created by these sections. Actual results may differ materially from the Company's expectations.

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.

Contact Information

  • FreshXtend Technologies Corp.
    R.W. Robinson
    (604) 322-0759
    (604) 322-0487 (FAX)