ROCHESTER, N.Y., March 25, 2013 /CNW/ - Vuzix Corporation (TSX-V:
VZX, OTC:BB: VUZI, FMB: V7X) ("Vuzix" or, the "Company"), a leading
supplier of Video Eyewear and smart glasses products in the
consumer, commercial and entertainment markets, reported today that
on March 21, 2013, it entered into
definitive documents for the sale of a $800,000 16% Senior Secured Convertible
Debenture, in a private placement transaction, pursuant to the
terms of a securities purchase agreement with Hillair Capital
Investments L.P. ("Hillair"). Repayment of the original principal
amount of the Debenture is due as follows: $200,000 on each of February 1, 2014, May 1,
2014 and August 1, 2014 and
$50,000 on each of August 1, 2015, August 1,
2016, August 1, 2017 and
March 21, 2018. The Debenture has a
maturity date of March 21, 2018. The
Debenture is convertible into common stock at an initial conversion
price of $4.29 per share, subject to
adjustment, and is secured by all the present and future assets of
the Company and its subsidiaries pursuant to a security agreement,
pledge agreement and subsidiary guaranty. In addition, the Company
also agreed to issue a warrant to Hillair to purchase up to 186,480
shares of the Company's common stock. The warrants have an exercise
price of $4.72 per share and are
exercisable from the date of issuance until March 21, 2018. The closing of the transaction
was subject to approval of the TSX Venture Exchange, which was
received on March 25, 2013, and
satisfaction of customary closing conditions.
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Paul Travers, Chief Executive
Officer of Vuzix, said that, "As we prepare to launch our new M100
Smart Glasses this financing will allow us to continue with the
final development and commercialization of the M100 for its planned
summer introduction. The balance of the proceeds will be used for
general working capital purposes and final preparatory work for our
proposed secondary public offering."
Further details of the private placement financing will be
available in the Company's Form 8-K to be filed with the SEC by the
Company and all of the transaction documents will be filed as
exhibits to the Form 8-K.
The securities offered in the private placement financing have
not been registered under the Securities Act of 1933, as amended
(the "Securities Act"), or applicable state securities laws.
Accordingly, the securities may not be offered or sold in
the United States except pursuant
to an effective registration statement or an applicable exemption
from the registration requirements of the Securities Act and such
applicable state securities laws. The securities were offered only
to accredited investors.
This release does not constitute an offer to sell or the
solicitation of an offer to buy any securities of the Company, nor
shall there be any sale of any securities of the Company where such
offer, solicitation or sale would be unlawful prior to the
registration or qualification under applicable securities laws.
About Vuzix Corporation
Vuzix is a leading supplier of Video Eyewear products in the
consumer, commercial and entertainment markets. The Company's
products, personal display devices that offer users a portable high
quality viewing experience, provide solutions for mobility,
wearable displays and virtual and augmented reality. Vuzix holds 32
patents and has additional patents pending and numerous IP licenses
in the Video Eyewear field. The company has won Consumer
Electronics Show (or CES) awards for innovation for the years 2005
to 2013 and several wireless technology innovation awards, among
others. Founded in 1997, Vuzix is a public company (TSX-V:VZX -
News, OTC:BB: VUZI, FMB: V7X) with offices in Rochester, NY, Oxford, UK and Tokyo, Japan. For more information visit
www.vuzix.com.
Forward-Looking Statements Disclaimer
Certain statements contained in this release are
"forward-looking statements" within the meaning of the Securities
Litigation Reform Act of 1995 and applicable Canadian securities
laws. Forward looking statements contained in this release relate
to the closing of the private placement financing, the completion
of the M100 Smart Glasses for summer introduction, the ability to
undertake the proposed public offering, among other things, and the
Company's leadership in the Video Eyewear industry. They are
generally identified by words such as "believes," "may," "expects,"
"anticipates," "should" and similar expressions. Readers should not
place undue reliance on such forward-looking statements, which are
based upon the Company's beliefs and assumptions as of the date of
this release. The Company's actual results could differ materially
due to risk factors and other items described in more detail in the
"Risk Factors" section of the Company's Annual Reports and MD&A
filed with the United States Securities and Exchange Commission and
applicable Canadian securities regulators (copies of which may be
obtained at www.sedar.com or www.sec.gov). Subsequent events and
developments may cause these forward-looking statements to change.
The Company specifically disclaims any obligation or intention to
update or revise these forward-looking statements as a result of
changed events or circumstances that occur after the date of this
release, except as required by applicable law.
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.
For further Investor Information, please contact:
Vuzix Corporation
75 Town Centre Drive
Rochester, NY 14623 USA
Investor Information – Grant
Russell
IR@Vuzix.com
Tel: +1 (585) 359-7562
Vuzix.com
SOURCE Vuzix Corporation