NovaDX Closes Brokered Private Placement
| May 03, 2006 NovaDX Closes Brokered Private Placement |
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| May 03, 2006 -- NovaDX Ventures Corp. is pleased to announce that the Company has closed a brokered private placement of 2,677,500 subscription receipts at $0.30 per receipt, for gross proceeds of $803,250. Blackmont Capital Inc. acted as agent. Each subscription receipt is exercisable into one unit of the Company upon the completion of the Company's acquisition of the portfolio assets of the Canadian Small Cap Resource Fund 2004 Limited Partnership (the "Fund"), as previously announced on March 31, 2006 and the graduation of NovaDx from the NEX Board to the TSX Venture Exchange as an Investment Issuer. Each unit is comprised of one common share and one half of one share purchase warrant. Each full warrant is exercisable into an additional common share at any time up to the close of business on April 28, 2007 at a price of $0.40 per share, subject to acceleration in certain circumstances. The proceeds of the private placement are being held in escrow pending satisfaction of the above conditions. The subscription receipts and underlying securities are subject to a four month hold period expiring August 29, 2006. Upon release from escrow, Blackmont will receive a 7% cash commission and a corporate finance fee of 1.5% of the gross proceeds raised from the offering. In addition, Agent Warrants equal to 10% of the total number of subscription receipts sold in the offering were granted to the agents. The Agent Warrants are exercisable into units of NovaDx at a price of $0.30 per unit, on or before April 28, 2007. Each underlying unit has the same terms as the units underlying the subscription receipts. The proceeds of the private placement will be used to fund the acquisition of the portfolio assets of the Fund and for further investment purposes. The acquisition and associated Change of Business by NovaDx remains subject to regulatory approval. The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The company cautions readers that forward-looking statements, including without limitation those relating to the company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. For more information, please contact Scott Ackerman at 1-866-824-8938. |
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You can view the Next NovaDX Corporate News item: Wed May 17, 2006, NovaDX Completes Acquisition of Resource Portfolio and Graduates to TSX Venture Exchange |