NXA Inc.

June 12, 2012 15:05 ET

NXA Inc. to Convert Outstanding Debentures Into Equity

TORONTO, ONTARIO--(Marketwire - June 12, 2012) - NXA INC. (TSX VENTURE:NXI) ("NXA" or the "Company") further to its press release on May 14, 2012, the Company announces the conversion of the 10% unsecured convertible debentures issued on December 16, 2010 and February 28, 2011 (collectively, the "Debentures") into common shares of the Company (the "Common Shares").

The Company issued the Debentures in the aggregate principal amount of $1,086,000 in connection with a private placement of units, each of which consisted of $1,000 principal amount (the "Principal Amount") and 5,000 share purchase warrants at an interest rate of 10% per annum (the "Interest").

Today, the Company will issue a total of 10,860,000 Common Shares on account of the Principal Amount at a conversion price of $0.10 per Common Share in accordance with the terms of the Debentures (the "Conversion").

Additionally, the Company intends to satisfy the payment of accrued and unpaid Interest in the amount of $158,297 as of the date of Conversion of the Principal Amount through the issuance of 1,055,316 Common Shares to the holders of the Debentures at a deemed price of $0.15 per Common Share pursuant to the "shares for debt" policies (the "Shares for Debt Transaction") of the TSX Venture Exchange (the "TSXVE"). Completion of the Shares for Debt Transaction is subject to approval by the TSXVE and the receipt of any required regulatory approvals.

Prior to the Conversion, there are approximately 4,676,733 Common Shares issued and outstanding. After giving effect to Conversion, there will be approximately 15,536,733 Common Shares outstanding. After giving effect to the Shares for Debt Transaction, it expects to have approximately 16,592,049 Common Shares issued and outstanding.

Cautionary Statement Regarding Forward-Looking Statements:

This press release contains forward-looking statements regarding a proposed consolidation of the common shares of NXA and the conversion of convertible securities. Actual developments may differ materially from those contemplated by these statements depending upon, among other things, the decisions made by regulators. The forward looking statements contained in this press release represent the Company's views and expectations as of the date of this release and should not be relied upon as representing its views and expectations at any subsequent date.

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 this release.

Contact Information

  • NXA Inc.
    Paul Van Damme
    Chief Financial Officer
    (647) 629-0136