Alexium International Group Limited
Alexium International Group Limited: $8 MILLION 3 YEAR FUNDING COMMITMENT FROM ROSWELL CAPITAL PARTNERS
Alexium International Group Limited / Key word(s): Corporate Action/Private Equity Perth, Western Australia, Greer, South Carolina, (‘Alexium’ or the ‘Company’) (ASX:AJX) today announced the signing of a term sheet for an US$8,000,000, 3 Year Equity Line funding facility with Centurion Private Equity, LLC (‘Centurion’), an institutional investor managed by Roswell Capital Partners, LLC (‘Roswell’) based in, Georgia, USA. The term sheet is subject to (i) the parties entering into formal agreements setting forth their respective rights and obligations, (ii) the completion of due diligence on the Company’s business to the Investor’s satisfaction and (iii) the receipt of all necessary regulatory approvals for the facility. Alexium has entered into this facility to bolster its balance sheet capability for any future expansion requirements of its Reactive Surface Treatment (RST) technology to meet expected demand both from US Department of Defense tenders and commercial sector license deals. According to the term sheet, the Company may draw on the commitment by providing draw down notices to Roswell during the next 3 years. Each drawdown is subject to a maximum amount, as well as to a floor price, below which the Company will not issue shares to Roswell. The common shares will be issued at a price equal to 95% of the market price, but not below the floor price. Gavin Rezos, Alexium’s Chairman, stated: ‘We are pleased to be working with a highly experienced team at Roswell with the added benefit of their nearby location to our US operations. The funding facility also has the advantage of being exercisable at our discretion, which allows for greater ease of funding flexibility and funding availability to meet our developing requirements as we grow our business over the next 3 years.’ Paul Gorski, Senior Investment Officer at Roswell added: ‘We are very excited to be working with Alexium and its award winning technology and look forward to providing this fast growing company with capital and support to help them achieve their commercial potential in the coming years.’ The use of the Equity Line funding facility is subject to shareholder approval to the extent at any time, that Alexium does not have sufficient capacity under its 15% issuance capability under ASX Rules, to fulfill a drawdown notice. The Equity Line funding facility is also subject to final documentation and due diligence, expected to be completed shortly. About Roswell Capital Partners Roswell Capital Partners, LLC (Roswell) is a fund management company focused on private equity investments in small-cap publicly traded securities. Since 1994, its members have served in the Private Equity Markets as the Principal or Investment Banker for over 125 public companies. In that time Roswell and its affiliates have provided financing or equity commitments in excess of $1billion to public companies. For more Information visit: www.alexiuminternational.com Contacts Australia Mr. Nicholas Clark About Alexium Alexium International Group Limited (ASX:AJX, AX:AJX) holds proprietary patent applications for a process developed initially by the US Department of Defence , which allows for the surface modification and attachment of nano particles or multiple chemical functional groups to surfaces or substrates to provide functions such as water proofing, oil proofing, anti microbial, non-stick and UV protection. Applications under development include but are not limited to textiles, paints, packaging, glass and building materials. End of Corporate News 24.03.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
116750 24.03.2011 |