Novadx closes on non‐brokered private placement Novadx Ventures Corp, President & CEO, Neil MacDonald, reports:
For Immediate Release
Novadx closes on non‐brokered private placement
Novadx Ventures Corp, President & CEO, Neil MacDonald, reports:
(Vancouver, BC, September 2, 2010) Novadx Ventures Corp (“Novadx” or the “Company”) ‐ TSX‐ V: NDX announces that that it has closed the 1st tranche of a 5,700,000 unit non‐brokered private placement of the Company that was previously announced on August 19, 2010, of 2,137,817 units at a price of $0.175 per unit. Gross proceeds of the closing were $374,117.98. Each unit consists of one common share and one‐half of one transferable share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share at an exercise price of $0.25 per share on or before August 31, 2011.
In accordance with the TSX Ventures policies, the Company paid finder’s fees of $9,011.10, and issued 73,560 compensation warrants in connection to the financing. Each compensation warrant is exercisable into one common share of the Company at a price of $0.25 per share on or before August 31, 2011.
The net proceeds from the financing will be used to purchase equipment for the Company’s wholly‐owned subsidiary, MCoal Corporation‘s Rosa Mine Site and general working capital. All of the securities issued under the private placement will be subject to a hold period expiring on January 1, 2011.
Neil MacDonald, CEO of Novadx, acquired 1,402,217 units under the private placement. Upon completion of the offering, the Mr. MacDonald has ownership and control over in aggregate, 5,388,551 common shares, representing 9.80% of the currently outstanding shares of Novadx (9,129,259 common shares representing 16.6% assuming exercise of all warrants). The Company understands that Neil MacDonald acquired the securities for investment purposes. Mr. MacDonald may in the future acquire or dispose of securities of the Company through the market, privately or otherwise, as circumstances or market conditions warrant.
A copy of the Early Warning Report filed by Neil MacDonald filed with the applicable securities regulators in connection with the private placement is available under the Company's SEDAR profile at www.sedar.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.
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.
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]
Gavin McMillan (604) 633‐2776 ext. 30 [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.