Delphax Technologies Inc. (OTC: DLPX) said it has closed on a financing agreement with Air T, Inc., (NASDAQ Capital Market: AIRT) that will support the commercial rollout and manufacturing costs of the new Delphax elanâ¢ 500 digital color print system.
Under a securities purchase agreement signed by the company in October 2015 and approved by shareholders on Nov. 24, 2015, Delphax Technologies Inc. issued 43,000 shares of Delphax Series B Preferred Stock for USD1.05 million in cash and also issued a Stock Purchase Warrant to Air T to acquire an additional 95,600 shares of Series B Preferred Stock. In addition, Delphax´s Canadian subsidiary, Delphax Technologies Canada Limited, issued a USD2.5 million five-year secured subordinated promissory note.
The company used USD500,000 of the new financing to pay off a subordinated note issued on the date the Securities Purchase Agreement was signed on Oct. 2, 2015, that was due Dec. 31, 2015. The remainder of the proceeds will be used to build additional production units of the elan and for sales and marketing costs.
Air T, through its subsidiaries, provides overnight air freight service to the express delivery industry, manufactures and sells aircraft deicers and other special purpose industrial equipment, and provides ground support equipment and facilities maintenance to airlines.
Delphax Technologies Inc. is a global leader in the design, manufacture and delivery of advanced digital print production systems. It is headquartered in Minneapolis, Minn., USA with subsidiaries in Canada, the United Kingdom and France. The company´s common stock is currently quoted over the counter under the symbol DLPX.