Funds Earmarked for Delivering Orders in Process and Supporting Ongoing Testing
Jul 30, 2008 10:00:00 AM
Copyright Business Wire 2008
View Additional ProfilesIRVINE, Calif.--(BUSINESS WIRE)--
Sionix Corporation (OTCBB:SINX) today announced that it has successfully completed a $1.0 million private placement of its convertible debentures and warrants raised from new accredited investors.
The new funds will primarily be used for: 1) hiring a project engineer who will oversee production for the Sionix Elixir 225/RO Water Treatment Systems currently in production, as well as continuing the company's research and development efforts; 2) finalize testing at the Villa Park dam as the company works toward its goal of achieving industry standard Title 22 for water potability; and 3) facilitating the Anaheim manufacturing facility where modular components will be manufactured and assembled by Sionix in regard to the recent purchase order of Sionix' Elixir 225/RO Water Treatment Systems by Innovated Water Solutions, Inc., of Littlerock, Arkansas. This facility will also be responsible for assembly of custom systems, Research and Development, testing and laboratory analysis.
The net proceeds to Sionix totaled approximately $840,000, after the payment of placement agent fees and transaction expenses. The financing consists of $1.0 million in aggregate principal amount of Sionix' 12% convertible debentures convertible into common stock at $.25 per share and five-year warrants to purchase 1 million shares of common stock at an exercise price of $0.30 per share.
Richard H. Papalian, Chief Executive of Sionix Corporation stated, "This financing is a positive endorsement of our business strategy and is in recognition of the significant market opportunity that exists for delivering economical water treatment solutions on a global scale. With our first order in hand, and the funds now available that will allow us to build out our manufacturing capabilities, we look forward to readying the Company for significant future growth."