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August 15, 2005
MDX Medical Closes $1.725 Million Private Placement
For Immediate Release: Vancouver, BC - (August 15, 2005) MDX Medical Inc. ("MDX" or the "Company") (TSX.V: MDX) is pleased to announce that it has successfully completed a brokered private placement of 23,000,000 units at a price of $0.075 per unit for total gross proceeds of $1,725,000 pursuant to the announcements made on July 27 and July 5, 2005. MDX intends to use the net proceeds to finance research and development and for general corporate purposes.
MDX was originally seeking to raise $1,000,000 on a best efforts basis. Due to high demand for the private placement, the amount was raised to $1,500,000 with a 15% over-allotment option granted to the agent, First Associates Investments Inc. ("First Associates"). Barry Allen, President and CEO of MDX, stated, "This larger amount reflects the market's confidence in our new NIRS technology for non-invasive bladder diagnostics and management�s ability to effectively execute on the business plan. Our team looks forward to the commercialization of the NIRS technology and the significant opportunity to improve the diagnosis and quality of life for the tens of millions suffering from urinary incontinence in North America alone."
The private placement was placed by First Associates, with Haywood Securities Inc. ("Haywood") assisting with the placement of a portion of the units. Each unit consists of one common share and one warrant, each warrant entitling the holder to acquire one additional common share for a period of two years from the closing on August 12, 2005 at $0.125 per share during the first year and $0.20 per share during the second year. MDX may give notice that the exercise period of the warrants will be reduced to 30 days if (i) any time during the first year, excluding the hold period, the Company's daily weighted average trading price on the TSX Venture Exchange exceeds $0.20 per share for 20 consecutive trading days and the average daily volume of trading in the Company's shares exceeds 150,000 shares during that 20 day period; or (ii) any time during the second year the Company's daily weighted average trading price exceeds $0.30 per share for 20 consecutive trading days and the average daily volume of trading in the Company's shares exceeds 100,000 shares during that 20 day period.
Pursuant to the terms of the agency agreement between First Associates and MDX, First Associates was issued 107,000 units as partial payment of its corporate finance fee. In addition, First Associates and Haywood were issued a combined total of 1,291,000 agents' warrants, each agents' warrant entitling the holder to purchase one common share of MDX for a period of two years from the closing at a price of $0.075 per share during the first year and $0.08625 per share during the second year.
All securities issued in connection with the private placement will be subject to a hold period until December 13, 2005 in accordance with the policies of the TSX Venture Exchange and applicable Canadian securities laws.
About MDX Medical
MDX Medical Inc.'s focus is on commercializing novel, innovative and leading edge medical device technologies for improved diagnosis and treatment of cancer and other prominent health disorders. The Company's business strategy is to acquire promising technologies that have reached the "proof of feasibility" or later stages of product development, complete the final stages of commercialization, obtain the required regulatory approvals and pursue strategic marketing partners. For more information about MDX, please visit our website at: www.mdxmedical.com.
On behalf of the Board,
"Barry Allen"
President & CEO
MDX Medical Inc.
Certain information contained in this press release may be forward looking and is subject to unknown risks, which could cause actual results to differ materially from those, set forth or implied herein. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove correct.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Larry Horsburgh
Phone: (604) 694-7770, Ext. 112
Email: lhorsburgh@mdxmedical.com |
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