KIRKLAND LAKE, ONTARIO--(Marketwire - May 2, 2012) - NORDEX EXPLOSIVES LTD. (TSX VENTURE:NXX) ("Nordex", or the "Company") is pleased to announce its highest 1st quarter sales in the 42 year history of the Company.
The total sales for the months of January, February and March 2012 were approximately $3,273,000.
This is an increase of $790,572, or 32%, over the 2011 same period gross sales of $2,482,428 during January, February and March 2011. It is also an increase of $468,205, or 17%, over the 2010 previous record high sales of $2,804,795 during January, February and March of 2010.
Jim Taylor, Chief Executive Officer for Nordex, stated, "The increase in sales is a direct reflection of increased activity for existing clients and new industrial & mining clients announced during the last year."
Jacques Levesque, President of Nordex, stated, "Our employees have worked extremely hard to achieve these sales results and we thank them for their efforts."
The financial information in respect of gross sales for the periods indicated set out in this news release is presented on a basis consistent with the accounting principles used to prepare Nordex' most recently filed financial statements. Readers are advised that the Company faces various risk factors with respect to its business and operations: for further information please see the Management Discussion and Analysis of Nordex at www.SEDAR.com.
In addition, Nordex is pleased to announce that it has closed its previously announced private placement offering (the "Offering") with All Group Financial Services Inc. ("All Group"). Pursuant to the Offering, the Company issued a total of 2,927,500 common shares ("Common Shares") in three tranches at a price of $0.40 per share for gross proceeds to the Company of a total of $1,171,000. After completion of the Offering, the Company has 9,977,859 Common Shares outstanding.
The net proceeds of the Offering will be used to fund ongoing investment in the Company's distribution system and to replenish working capital. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the final approval of the TSX Venture Exchange. The Common Shares issued in the Offering will be subject to resale restrictions of four months and one day from the respective dates of distribution under applicable securities legislation.
In connection with the Offering, All Group was paid a cash commission in an amount equal to 8% of the gross proceeds of the Offering and was issued broker warrants in an amount equal to 8% of the number of Common Shares sold in the Offering, with each such broker warrant exercisable to acquire one common share of the Company for a period of two years from the date of distribution at the Offering price. The broker warrants issued pursuant to the Offering and the underlying Common Shares will be subject to resale restrictions of four months and one day from the respective dates of distribution under applicable securities legislation.
ABOUT NORDEX EXPLOSIVES: LES EXPLOSIFS NORDEX LTEE./NORDEX EXPLOSIVES LTD. is a manufacturer and distributor of explosives for the mining, quarry and road construction industries since 1970. Its manufacturing operations and distribution centre is strategically located in one of the world's largest mining regions near Kirkland Lake, Ontario. Nordex trades on the TSX Venture Exchange under the symbol "NXX".
Additional Information relating to the Company is available on SEDAR at www.sedar.com.
Certain information included herein may contain "forward-looking statements" which reflect the current expectations of management of the Company regarding the Company's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "may", "would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavor", "seek", "predict", "potential" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management of the Company. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation, cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; compliance with environmental regulations; exchange rate fluctuations as well as the other risks identified in the "Risk Factors" contained in the Company's Management Discussion and Analysis for the year ended 2011 and other public filings (copies of which may be obtained at www.SEDAR.com). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and the reader should not place undue reliance on the forward-looking statements. Although any forward-looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release, and, other than as required by law, the Company does not intend, and does not assume any obligation, to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.