FreshXtend Announces Restructuring Changes and 2 Financings Closed
09 May 2008 - 4:33AM
Marketwired
VANCOUVER, BRITISH COLUMBIA ("FreshXtend" or "the Company")
announces that, as a result of the successful launch of NatureSeal,
Inc. and AgriCoat NatureSeal Limited as announced on April 4, 2008,
the Company has undertaken a review of its ongoing operations and
in particular, its staffing requirements. As the activities
previously undertaken by the Company in connection with its
antioxidant business are now being carried out by employees of
NatureSeal, Inc. and AgriCoat NatureSeal Limited, the Company will
be downsizing and eliminating a significant number of current
positions.
Going forward, the Company anticipates it will be placing an
emphasis on its long established FreshSpan technology as the basis
for its ongoing operations. The Company is exploring a number of
opportunities for the FreshSpan technology in the Asian markets,
particularly in China, and in Europe. Meanwhile, the Company is
continuing a review of its core businesses to determine what
further changes, if any, may be advisable.
The Company is pleased to announce it has closed the first
tranche in the amount of US$600,000 of the private placement of
secured convertible notes announced on March 26, 2008. The notes
bear interest at the rate of 8% per annum and have a term of five
years.
The notes may be converted at any time, at the option of the
holder, into common shares of the Company. The conversion rate is
13 common shares for each US$1.00 converted in the first two years,
11 common shares for each US$1.00 in the third year, 10 common
shares for each US$1.00 in the fourth year and 9 common shares for
each US$1.00 in the fifth and final year. The Company may repay the
principal amount of the convertible notes, together with accrued
and unpaid interest, at any time, without penalty, upon not less
than 15 days notice to the holders. Interest on the convertible
notes is payable semi-annually in cash or shares, at the option of
the holder. Shares issued to pay interest would be issued at the
market price at the time of issuance. The convertible notes are
secured by the Company's shares in NatureSeal, Inc. and AgriCoat
NatureSeal Limited.
Gibsbourne Pty Limited, an existing shareholder holding 10% or
more of the Company's issued and outstanding shares, acquired the
convertible notes for US$600,000 under this private placement. The
convertible notes and the underlying shares issuable on conversion
of the notes, are subject to a hold period until August 1,
2008.
The Company also announces the closing of the private placement
of 3,500,000 common shares at a price of US$0.08 per share, for
proceeds of US$280,000, to Gibsbourne Pty Limited. This private
placement was also announced on March 26, 2008. The common shares
are subject to a hold period until July 29, 2008.
The proceeds from the two private placements will be used to
assist the Company's contributions to NatureSeal, Inc. and AgriCoat
NatureSeal Limited, and to provide the Company with additional
working capital. No finder's fee or commission was payable in
connection with these private placements.
The Company also announces that the 2008 Annual General Meeting
has been scheduled to be held on June 3, 2008. The Notice of
Meeting, information circular and proxy material has been mailed to
all registered shareholders and posted on Sedar.
FreshXtend Technologies Corp.,
R.W. Robinson, Director
FreshXtend Technologies Corp. is a leading provider of life
extension technology to the high-growth fresh produce and flower
industry. FreshXtend's patented technologies naturally place
produce in a state of hibernation while it is being shipped and
extend the shelf-life of fresh produce, flowers and juices.
FreshXtend is based in Vancouver, British Columbia and has a
network of R&D relationships, which include the University of
British Columbia.
Trading symbol: FXT (TSX-V)
Manual Listing S & P's Industrial & Int'l, 12g (3)b
Exemption: #82-2190
The statements in this news release may contain certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Exchange Act of 1934
and are subject to the safe harbour created by these sections.
Actual results may differ materially from the Company's
expectations.
The TSX Venture Exchange has neither approved nor disapproved
the contents of this news release.
Contacts: FreshXtend Technologies Corp. R.W. Robinson Director
(604) 322-0759 (604) 322-0487 (FAX) Website: www.freshxtend.com
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