SOURCE: Sionix Corporation
LOS ANGELES, CA--(Marketwire - Sep 28, 2012) - Sionix Corporation (OTCBB: SINX) today announced it has completed a private placement in which the Company sold and issued Senior Convertible Debt Units to a limited number of investors for aggregate gross proceeds of $1,025,000.
The Senior Convertible Debt Units were placed pursuant to a Securities Purchase Agreement between Sionix and the investors dated September 25, 2012. The Units are comprised of a Senior Convertible Note plus Warrants. Convertible Capital, a division of Trump Securities, LLC, acted as placement agent for the financing.
Additionally, Sionix has entered into a financing agreement for $400,000 with GEL Properties, LLC. GEL has agreed to the purchase of a series of Convertible Securities from Sionix over a period of months. The initial tranche of $100,000 was completed on September 20, 2012.
Sionix' Interim Chairman James W. Alexander commented, "In our shareholder letter of August 23rd, we commented on our belief in the benefits of Sionix equipment and services to multiple water treatment markets. During the last several weeks Sionix has made significant progress executing on its goals. The $1,025,000 financing we have secured, as well as the going-forward financing commitments, now provide Sionix the resources to more aggressively pursue our proactive business development strategies. These investors have shown confidence in the Sionix plan as well as our personnel.
The above shareholder letter stated, We have been pursuing opportunities in a variety of markets. They each have different needs and economics and require a highly tailored approach. We will continue on this path.
I believe our recently signed lease agreement with Crown Maple Syrup, Inc. is good evidence of Sionix' ability to evaluate and resolve a variety of fluids challenges. Finally, we are moving ahead with our business development plans in the Williston Basin region of North Dakota. This capital facilitates our strategy in this booming area."
About Sionix Corporation
Sionix designs innovative and advanced water treatment systems intended for use in energy, government facilities, healthcare facilities, emergency water supplies during natural disasters, housing development projects, and various industrial processes including subterranean fracturing used in oil and gas drilling. These systems can be located adjacent to contaminated water sites or as a pre-treatment for reverse osmosis and other membrane applications. Industries involved in dairy, agribusiness, meat processing, mining, poultry operations, and many others can benefit from Sionix' cost-effective, easily maintained, portable water treatment systems. For more information about the Company, go to www.sionix.com.
About Sionix Technology
The Sionix Mobile Water Treatment System for fluids management and water treatment addresses a broad spectrum of contaminant conditions in totality. Using a customized technology configuration, each system tailors its technology suite to address each customer's specific treatment needs. The dynamic nature of influent contamination dictates treatment parameters which may continually be in flux. The modularity of the technology suite within the Sionix MWTS allows for the ease of adaptation to these fluctuating contaminant conditions. A unique component highlighted within the Sionix systems is the Sionix patented and proprietary Dissolved Air Flotation technology, which generates micro bubbles between the size of 1 and 2 microns, compared to historical sizes of 50 microns or larger. The actions of these micro bubbles facilitate the removal of 99.95% of organic contaminants and a majority of inorganic contaminants. The evolution of this technology is exclusive to the Sionix Water Treatment Systems.
All statements in this press release that are not statements of historical fact are forward-looking statements, including any projections of earnings, revenue, or other financial items, any statements of the plans, strategies, and objectives of management for future operations, any statements concerning proposed new products, services or developments, any statements regarding future economic conditions or performance, statements of belief and any statements of assumptions underlying any of the foregoing. These statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The risks and uncertainties include, but are not limited to, whether Sionix Corporation can raise capital as and when it needs to, whether the water purification systems will generate significant sales, whether it can compete successfully in its market and industry, and other factors beyond the control of Sionix Corporation, including those detailed from time to time in the reports filed with the Securities and Exchange Commission. Sionix Corporation assumes no obligation and does not intend to update these forward-looking statements.