NexgenRx Inc.
TSX VENTURE : NXG

NexgenRx Inc.

November 29, 2010 15:57 ET

NexgenRx Announces Completion of Debt Retirement Transactions

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2010) - NEXGENRX INC. ("NexgenRx" or the "Corporation") (TSX VENTURE:NXG) is pleased to announce the completion of a series of transactions that retire an aggregate of $2,000,000 of debt and reduce the Corporation's interest payment obligations on its remaining $500,000 debenture to Prime + 1%. Of the aforementioned $2,000,000 of indebtedness, all of which was maturing under outstanding convertible secured debentures that were initially issued on October 12, 2007 (the "Debentures"), an aggregate of $500,000 of indebtedness has been converted into 1,666,667 Common Shares at a price of $0.30 per share. The remaining $1,500,000 principal amount of the foregoing Debentures has been repaid in accordance with the terms thereof using the proceeds of the unit financing that the Corporation completed on Friday, November 26, 2010. As noted in the Corporation's news releases issued on Friday, November 26, 2010, the following noteworthy milestones have been achieved by NexgenRx:

  • Extension of its initial $500,000 principal amount debenture for one year, in addition to a reduction of interest payable thereunder from a fixed rate of 8% to a floating rate equal to the Prime Rate + 1%;
  • Completion of a private placement financing for aggregate gross proceeds of $1,550,050;
  • Amendment of the conversion price of the Debentures from $0.35 to $0.30;
  • Repayment of $1,500,000 of the Debentures; and
  • Conversion of $500,000 of the Debentures into an aggregate of 1,666,667 Common Shares at a price of $0.30 per share.

The net effect of these transactions results in a significant reduction of debt and debt servicing costs on the Corporation's balance sheet.

Ron Loucks, President and CEO of NexgenRx stated, "The combination of transactions that have been completed over recent days mark a substantial development in the Corporation's progress in improving its balance sheet, cash position and profitability and is recognition of the support and confidence of equity investors, both inside and outside of the Corporation. The net effect of extending our initial $500,000 debenture at a reduced interest rate and converting and paying out the balance of our $2,000,000 principal amount debentures results in a 90% reduction in debt servicing costs and is expected to enhance our positive cashflow position. We look forward to building on these developments with further reports of progress and profitability in the near future."

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. More information on NexgenRx can be found at www.nexgenrx.com.

Caution Regarding Forward-Looking Statements – This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Corporation. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements.

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 the release.

Contact Information

  • NexgenRx Inc.
    Ronald C. Loucks
    President and CEO
    (416) 695-3393 x 801
    (647) 722-2920 (FAX)
    www.nexgenrx.com