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Thursday May 14, 11:23 am Eastern Time
Company Press Release
Xenotech Inc. Announces Private Placement
CALGARY, Alberta--(BUSINESS WIRE)--May 14, 1998-- Xenotech(Alberta Stock Exchange:XEN. - news)
XENOTECH INC. (the ''Company'') announces that The Liverpool Limited Partnership (''Liverpool'') and Westgate
International, L.P. (''Westgate''), private investment partnerships under common management with Elliott Associates,
L.P. a New York based investment firm, have agreed to subscribe for 25,000,000 Units of the Company, at a price of Cdn.
$0.30 per Unit, for total subscription proceeds of Cdn$7,500,000. Each Unit is comprised of one common share of the
Company and one-half of one common share purchase warrant, each warrant entitling the holder to acquire one common
share of the Company at a price of $0.40 for a period of two years.
In conjunction with the private placement, Liverpool and Westgate have agreed to convert Convertible Notes in the
principal amount of US$1,500,000 and accrued interest in the approximate amount of US$50,000 into common shares of
the Company at the conversion rate of US$0.20 per common share. This will result in the issuance of an additional
7,750,000 common shares.
After the issuance of the units and the conversion of the Notes, Westgate and Liverpool will each hold approximately
16,375,000 common shares, or 19.9 percent of the issued and outstanding capital of the Company of approximately
82,143,000 common shares.
The Company intends to utilize the proceeds of the private placement primarily for the ongoing marketing and
development of its proprietary 3D technology. A summary of the status of the commercial developments was announced
by the Company in its press release dated April 27, 1998. The Company has also allocated $1,900,000 of the proceeds
from the private placement for the purposes of a normal course issuer bid through the facilities of The Alberta Stock
Exchange to enhance the liquidity of the Company's common shares. The Company intends to file the required notice with
the Exchange within 30 days of the completion of the private placement.
Following completion of the private placement, the Company also intends to take steps to consolidate its issued and
outstanding capital on a one for five basis, which will result in total common shares issued and outstanding of
approximately 16,500,000.
The private placement and conversion of debt transactions are scheduled to be completed on or about May 15, 1998. All
of the above transactions remain subject to the approval of The Alberta Stock Exchange.
The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.
Contact:
Xenotech Inc.
Mr. Robert Baker, 011/6189-446-3366
bobbaker@xenotech.com.au
Fred McCutcheon |
