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February 19, 2007
NovaDX Arranges Loan Facility
NovaDX Ventures Corp, President & CEO, Neil MacDonald, reports:
(Vancouver, BC, February 19, 2007) NovaDX Ventures Corp ("NovaDX") is pleased to announce that it has arranged a loan facility in the principal amount of $450,000, from an arm's length party (the "Lender"). The loan bears interest at 6.5% and is repayable on or before March 31, 2008.
The proceeds of the loan will be used to fund a secured loan NovaDX has made to the Canadian Small Cap Resource Fund 2006 No. 2 Limited Partnership ("CSCRF 06 LP"). The loan made to the CSCRF 06 LP by NovaDX allows the partnership to maximize the benefit of the partnership's flow through investments to investors in the partnership offering by paying certain costs associated with the prospectus offering of limited partnership units from the loan proceeds rather than the proceeds of the offering. NovaDX has assigned its security provided by CSCRF 06 LP to the Lender to secure the loan made with the Lender.
On January 15, 2007, NovaDX announced that it had entered into a letter of intent with Western Resource Funds Ltd, pursuant to which it will undertake to provide administrative, management and marketing services to Canadian Small Cap Resource Funds ("CSCRF"). The arrangement will also entitle NovaDX to sponsor and provide such services to all future CSCRF limited partnerships, and this loan facility marks the beginning of this new business relationship.
"We are very excited about the relationship we have developed with CSCRF, a unique flow-through platform that is closely aligned with our goal of becoming a leader in providing financing, merchant banking and management advisory services to the resource exploration industry. By making this loan, NovaDX is helping to ensure that the CSCRF 06 LP is able to maximize the overall investment returns to its limited partners by maximizing the Canadian Exploration Expense tax benefits it is able to provide to its limited partners," said NovaDX CEO Neil MacDonald.
In consideration of the loan facility, NovaDX has issued 400,000 warrants to the lender, with each warrant being exercisable into one common share of the Company at $0.25 per share until December 31, 2008.
About NovaDX
NovaDX is a recently 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 Neil MacDonald or Rick Peterson at 604-684-2883 or send us an email at
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