NXA Inc.
NEX BOARD : NXI.H

March 09, 2007 15:02 ET

NXA Inc. Announces Closing of Financing

TORONTO, ONTARIO--(CCNMatthews - March 9, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES OF AMERICA WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES OF AMERICA.

NXA INC. ("NXA" or the "Company") (NEX:NXI.H), further to its press releases of November 27, 2006, December 8, 2006 and January 2, 2007 is pleased to announce the second closing today of the non-brokered offering (the "Offering") of securities of NXA to arm's length purchasers. Pursuant to the second closing of the Offering, the Company issued 2,106,667 units (the "Units"), each such Unit comprised of one common share (a "Share") and one Share purchase warrant (each, a "Warrant") at a price of $0.06 per Unit for aggregate gross proceeds of $126,400. Each Warrant partially comprising the Units shall be exercisable to acquire one Share of the Company for a period of twelve (12) months from the date of issuance of the Warrant at an exercise price of $0.10 per common share.

The Company may complete a third closing of securities early in the second quarter of 2007, subject to stock exchange and regulatory approvals. The proceeds of the Offering will be used to ensure the Company meets minimum listing requirements of Tier 2 of the TSX Venture Exchange (the "Exchange"), for which the Company has applied. Please see the Company's press releases of November 27, 2006 and December 8, 2006 for further information.

ABOUT NXA

The Company's common shares were listed for trading on the NEX board of the Exchange effective February 23, 2005. Since that time, the Company has been exploring new business opportunities with a view to maximizing shareholder value. On November 27, 2006, the Company announced the acquisition (the "Acquisition") of certain mineral properties in British Columbia, Canada (subject to stock exchange, regulatory and shareholder approvals), its application to graduate to Tier 2 of the Exchange in connection with its Change of Business (as defined in applicable Exchange policies) and the Offering.

Completion of the Acquisition is subject to a number of conditions, including Exchange acceptance and shareholder approval. The transactions contemplated by the Acquisition cannot close until the required shareholder approval is obtained. There can be no assurance that the Acquisition will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular to be prepared in connection with the Acquisition, any information released or received with respect to the Change of Business may not be accurate or complete and should not be relied upon. Trading in the securities of NXA should be considered highly speculative.

Shares Outstanding: 18,622,055

The Exchange has in no way passed upon the merits of the proposed Acquisition and has neither approved nor disapproved the contents of this press release.

Contact Information

  • NXA Inc.
    Chuck Lilly
    President and Chief Executive Officer
    (705) 522-2400, ext. 207