Tuesday December 23, 3:51 pm Eastern Time
Company Press Release
Xinex Networks Inc.: Terms Set for Bridge
Financing
VANCOUVER, B.C.--(BUSINESS WIRE)--Dec. 23, 1997--(Alberta Stock
Exchange:XNX. - news) Xinex Networks Inc. announced today that a group of investors led by Helix Investments Inc. has completed the terms of a $2 million short term bridge loan.
Under the terms of the loan, $2 million will be advanced to Xinex prior to February 28, 1998, as and when requested by the Company and, subject to conditions of advance relating to the use of the funds.
In lieu of interest payable on the loan, warrants will be issued allowing the lenders to purchase up to 9,523,809 common shares of Xinex Networks, exercisable at a price of $0.21 until December 1, 1999. The bridge loan is part of a larger financing that the Company is currently negotiating. A total of $767,000 has been advanced
to date.
''Helix remains in full support of Xinex,'' said Jim Wooder, Vice President of Helix Investments. ''We believe in the ultimate success of the Company and its Vortex multimedia system and are excited by the role Xinex will play in the workplace of the future.''
''Proceeds will be used to help fund the continuing commercial roll-out of the Vortex System, as well as, the continued support of our sales and marketing effort,'' said Roy Leahy, President and CEO of Xinex Networks.
''The ongoing commitment of knowledgeable investors, such as Helix, is a strong vote of confidence as we commence the commercial launch of our Vortex multimedia system.''
In addition, Xinex announced that the interim restraining order referred to in previous press releases (that was extended by the BC court to December 18, 1997) has been further extended.
The extension was granted to allow the trial of a narrow issue relating to the number of shares voted by one of the shareholders at the past special shareholders meeting.
Management of Xinex Networks continues to be confident that the claim of Xinex Labs (VCC) Inc. is without merit and, will continue to defend itself vigorously against the outstanding claim.
Xinex Networks Inc. (Alberta Stock Exchange: XNX - news) is an emerging provider of advanced communications solutions for the global workplace. Xinex develops and delivers, cost-effective technologies and products such as integrated voice, data, and video communication networks.
Xinex employs 95 people in development, production and sales offices in British Columbia, California, New Jersey, and Florida. Xinex can be reached by visiting xinex.com on the World Wide Web, e-mailing webmaster@xinex.com,
or calling 604/526 1585.
The Alberta Stock Exchange has neither approved nor disapproved of the
information contained here in.
Contact:
Xinex Networks Inc.
Roy Leahy, 604/526-1585
or
Tokenhouse Capital and Research
Brian Ostroff, 514/844-4014 |
