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Vuzix Announces $800,000 Private Placement Financing

Stocks in this article: VUZI

ROCHESTER, N.Y., March 25, 2013 /PRNewswire/ -- Vuzix Corporation (TSX-V: VZX, OTC:BB: VUZI, FMB: V7X) ("Vuzix" or, the "Company"), a leading supplier of Video Eyewear and smart glasses products in the consumer, commercial and entertainment markets, reported today that on March 21, 2013, it entered into definitive documents for the sale of a $800,000 16% Senior Secured Convertible Debenture, in a private placement transaction, pursuant to the terms of a securities purchase agreement with Hillair Capital Investments L.P. ("Hillair"). Repayment of the original principal amount of the Debenture is due as follows: $200,000 on each of February 1, 2014, May 1, 2014 and August 1, 2014 and $50,000 on each of August 1, 2015, August 1, 2016, August 1, 2017 and March 21, 2018.  The Debenture has a maturity date of March 21, 2018. The Debenture is convertible into common stock at an initial conversion price of $4.29 per share, subject to adjustment, and is secured by all the present and future assets of the Company and its subsidiaries pursuant to a security agreement, pledge agreement and subsidiary guaranty.  In addition, the Company also agreed to issue a warrant to Hillair to purchase up to 186,480 shares of the Company's common stock.  The warrants have an exercise price of $4.72 per share and are exercisable from the date of issuance until March 21, 2018.  The closing of the transaction was subject to approval of the TSX Venture Exchange, which was received on March 25, 2013, and satisfaction of customary closing conditions. 

(Photo:   http://photos.prnewswire.com/prnh/20110518/MM04932LOGO)

Paul Travers, Chief Executive Officer of Vuzix, said that, "As we prepare to launch our new M100 Smart Glasses this financing will allow us to continue with the final development and commercialization of the M100 for its planned summer introduction. The balance of the proceeds will be used for general working capital purposes and final preparatory work for our proposed secondary public offering." 

Further details of the private placement financing will be available in the Company's Form 8-K to be filed with the SEC by the Company and all of the transaction documents will be filed as exhibits to the Form 8-K.

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