Novadx Ventures Corp. Closes $3,000,000 Convertible Debenture Offering Novadx Ventures Corp, President & CEO, Neil MacDonald, reports:
For Immediate Release
Novadx Ventures Corp. Closes $3,000,000 Convertible Debenture Offering
Novadx Ventures Corp, President & CEO, Neil MacDonald, reports:
(Vancouver, BC, December 10, 2010) Novadx Ventures Corp. (“Novadx” or the “Company”) ‐ (TSX‐V: NDX) is pleased to announce it has closed the Convertible Debenture Offering previously announced on November 26, 2010, for gross proceeds of $3,000,000 CDN.
The convertible debentures are unsecured, have a 4‐year term, and bear interest at a rate of 10% per annum, starting in the second year that the debentures remain outstanding. The debentures are convertible into common shares of Novadx at a price of $0.30 per share at any time by the debenture holders. The proceeds of this debenture offering will be used to repay certain outstanding debts of the Company and for working capital. No finder’s fee has been paid in connection with this offering. The convertible debentures and any securities issuable upon conversion of the convertible debentures are subject to a hold period expiring April 10, 2011.
Neil MacDonald, CEO of Novadx commented, “This financing, which was partially subscribed for by insiders of Novadx, is incremental to the $38 million coal stream transaction with Sandstorm Metals and Energy we previously announced on November 26, 2010. The combination of these two transactions will provide the Company with adequate funds to close on the Tiacme and Ikerd Mining acquisitions as well as increase our production at the Rosa mine with the installation of a coal washing facility at the mine site.”
The Sandstorm transaction remains subject to the satisfaction of the conditions described in the Company’s November 26, 2010 press release.
About Novadx: Novadx is a Vancouver‐based Investment Company whose primary focus is on providing merchant banking services to natural resource companies. Novadx structures and makes direct equity investments as a principal and provides management and other related services to companies in specific resource sectors, such as MCoal Corporation, a subsidiary company that has commenced production from the Rosa mine a metallurgical coal mine in the State of Alabama, USA. For more information please visit www.novadx.com.
About MCoal: MCoal Corporation is a wholly‐owned subsidiary of Novadx Ventures Corp. and operates the Rosa Coal Mine. The Rosa Mine is a metallurgical coal mine located in Northern Alabama, approximately 40 miles north of the City of Birmingham. In addition to operating the Rosa Mine, MCoal is actively evaluating a number of high quality coal acquisition opportunities in the Appalachian coal region to increase its reserves and production.
This press release is not for distribution in the United States or over United States wire services.
ON BEHALF OF THE BOARD Neil MacDonald President and CEO and Director
For more information about Novadx Ventures Corp. please contact:
Neil MacDonald (604) 633‐2776 ext 23 [email protected]
Christopher Haugen Gale Capital Corp.
(604) 200‐1483 [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release 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. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the qualification under the securities laws of such jurisdiction.
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.