Dynex Power Inc. (Ottawa, Canada) announced that, subject to regulatory approval, the company has raised $250,000 through a private placement of one million common shares at $0.25 per common share. A large portion of the shares are being purchased by the directors of the company. The net proceeds from this placement will be used for working capital.
The company will also issue, subject to regulatory approval, an additional 120,000 common shares at $0.25 per common share as consideration in lieu of fees of $30,000 under a consulting service agreement with an insider of the company.
"This injection of funds was made to improve the company's liquidity and to demonstrate the confidence of the board in the company's future," commented Chairman David Banks. "Notwithstanding the current uncertain conditions in the markets, the board fully supports the management and believes that the current share price does not reflect the true value of Dynex."
