NovaDX to Provide Administrative Management and Marketing Services to the Canadian Small Cap Resource Funds
| January 15, 2007 NovaDX to Provide Administrative Management and Marketing Services to the Canadian Small Cap Resource Funds |
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| NovaDX Ventures Corp, President & CEO, Neil MacDonald, reports: (Vancouver, BC, January 15, 2007) NovaDX Ventures Corp ("NovaDX") is pleased to announce that it has entered into a letter of intent with Western Resource Funds Ltd. ("Western") to acquire certain contractual rights pursuant to which it will provide administrative, management and marketing services to Canadian Small Cap Resource Funds ("CSCRF") 2006 No. 1 and No. 2 Limited Partnerships. The arrangement will also entitle NovaDX to sponsor and provide such services to all future CSCRF Limited Partnerships. The total consideration to be paid by NovaDX to Western for the acquisition is CDN $200,000, to be satisfied through the issuance of 800,000 units at a price of $0.25. Each unit will consist of a common share of NovaDX and one-half (1/2) of one nontransferable share purchase warrant. Each whole warrant will entitle Western to purchase one common share of NovaDX at a price of $0.40 per share for a period of 12 months, subject to acceleration in certain events. The transaction remains subject to the approval of the TSX Venture Exchange. "This acquisition marks an important milestone in our strategy of becoming one of Canada's leading providers of merchant banking and investment management services in the junior resource sector," said NovaDX CEO Neil MacDonald. "CSCRF offers a unique flow-through LP platform for the junior resource market in Canada, with investment strategies and objectives that are closely aligned with those of NovaDX. We are confident we can help CSCRF become an even greater force in the resource exploration industry at a time when Canada's commodity sector continues to show long-term promise." Western's CEO, Stephen Wilkinson, who also serves as a director of NovaDX, says that Western will be very pleased to be part of the NovaDX structure following the completion of the transaction. Sargent Berner, a director of NovaDX, is also a director of Western. "NovaDX offers a broad range of financing, management, consulting and other services in a sector which we believe will continue to provide opportunities for high rewards for investors over the next several years," said Wilkinson, who helped found the predecessor funds to the CSCRF group and has been involved ever since. "We've done well with the CSCRF platform on our own, raising more than $22 million over the past three years. We believe that the NovaDX structure should allow for even more success in the future." About NovaDX NovaDX is a newly created merchant banking firm whose primary focus is on small and micro-cap natural resource issuers, a largely overlooked but important sector of the equity markets. NovaDX's business plan involves seeking out investment opportunities in companies that have quality management and projects that demonstrate an above average opportunity for new resource discovery. NovaDX works closely with management of these companies with the objective of mitigating risk and enhancing the value of its investments. NovaDX intends to pursue opportunities in North America and abroad. As a merchant bank, NovaDX seeks a return on its investments supplemented with revenue derived from providing investment banking and advisory services. ON BEHALF OF THE BOARD 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 Rick Peterson at 604-684-2883. |
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You can view the Next NovaDX Corporate News item: Mon Feb 19, 2007, NovaDX Arranges Loan Facility You can view the Previous NovaDX Corporate News item: Thu Nov 30, 2006, Novadx Announces First Quarter Results |