In Canada, Luxor has entered into a letter of intent to buy the book business and certain assets of Colt Builders Inc. of Alberta. A newly incorporated subsidiary of Luxor (“Newco”) is to acquire such assets in consideration for 40% of the shares of Newco. Colt has agreed that it will exchange 20% of the Newco shares to Luxor in consideration for the issuance of 5 million shares of
Luxor has entered into a letter of intent to buy 60% of the issued shares of Mill Frame LLC of Washington State in consideration for the obligation of Luxor to fund the business of Mill Frame on a going-forward basis. The vendor of the Mill Frame shares has agreed to exchange 20% of the Mill Frame shares to Luxor in consideration for the issuance of 5 million shares of Luxor upon Mill Frame generating $10 million in net sales and has agreed to exchange the remaining 20% of the Mill Frame shares to Luxor in consideration for the issuance of an additional 5 million shares of Luxor upon Mill Frame generating an additional $10 million in net sales. Upon achievement of the milestones, Luxor will hold 100% of the Mill Frame shares.
The letters of intent are non-binding except that all parties agreed to a binding exclusivity and standstill clause until January 31, 2016 to give the parties time to negotiate and enter into definitive agreements.
Terry Lashman, President of Luxor, advises, “We were looking to increase our sales in the fast growing USA housing market. Entering into the framing sector is ideal for the sales of Luxor’s building components. Our experienced cutting edge team of Luxor, Colt and Mill Frame felt the timing was right to pre-build in Canada to ship across the border into the USA using the exchange rate to support some of the logistics costs. With our large fabrication facility only 3 miles from the border, we realized it was better to work together than as individual companies.”
Luxor is involved in the development, engineering, manufacturing and marketing of engineered wood products and operates in three sectors.
