TORONTO, ONTARIO--(Marketwire - June 14, 2012) - NXA INC. ("NXA") (NXI.V), further to its press release dated June 12, 2012, is pleased to announce that it has completed the conversion of the accrued and unpaid interest outstanding on 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").
On June 12, 2012, the Company completed the conversion of the Principal Amount through the issuance of a total of 10,860,000 Common Shares at a price of $0.10 per Common Share.
Today, the Company will issue a total of 1,055,316 Common Shares in full satisfaction of the payment of accrued and unpaid Interest in the amount of $158,297 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. Common Shares issued pursuant to the Shares for Debt Transaction are subject to a four-month hold period expiring October 15, 2012.
Prior to the Shares for Debt Transaction, the Company had approximately 15,536,733 Common Shares issued and outstanding and after giving effect to the Shares for Debt Transaction, the Company has approximately 16,592,049 Common Shares issued and outstanding.
Cautionary Statement Regarding Forward-Looking Statements:
This press release contains certain "forward-looking statements" within the meaning of Canadian securities laws. 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 the 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.
Chief Financial Officer