MINNEAPOLIS, Dec. 3, 2015 /PRNewswire/ -- Delphax Technologies Inc. (OTC: DLPX), a global provider of high-speed digital printing equipment, today announced that it has closed on a financing agreement with Air T, Inc., (NASDAQ Capital Market: AIRT) that will support the commercial rollout and manufacturing costs of the new Delphax elan™ 500 digital color print system.
Under a Securities Purchase Agreement signed by the company in October 2015 and approved by shareholders on Nov. 24, 2015, Delphax Technologies Inc. issued 43,000 shares of Delphax Series B Preferred Stock for $1.05 million in cash and also issued a Stock Purchase Warrant to Air T to acquire an additional 95,600 shares of Series B Preferred Stock. In addition, Delphax's Canadian subsidiary, Delphax Technologies Canada Limited, issued a $2.5 million five-year secured subordinated promissory note.
The company used $500,000 of the new financing to pay off a subordinated note issued on the date the Securities Purchase Agreement was signed on Oct. 2, 2015, that was due Dec. 31, 2015. The remainder of the proceeds will be used to build additional production units of the elan and for sales and marketing costs.
"elan is already proving its unprecedented combination of speed, quality and affordability with the early adopters of the system," said Dieter Schilling, president and chief executive of Delphax. "The elan 500 systems so far installed have turned out over 57 million letter-sized pages of production. The new funding will power our ramp-up in elan manufacturing needed to go after the expanding market opportunities we have identified."
The elan 500 combines major advances in inkjet and paper-handling technologies in a robust production class sheet-fed system offering full CMYK color and 1600 dpi print quality at speeds of up to 500 letter impressions per minute. Powered by Memjet's Waterfall Printhead Technology®, the elan 500 represents an entirely new category of digital print technology and is Delphax's response to growing customer demand for more efficient, versatile and affordable color printing equipment. Its combination of speed and sheet size makes it the fastest cut sheet inkjet printer in the market today.
Nick Swenson, Air T's chief executive officer, said, "Delphax has developed a disruptive inkjet production printing platform, investing over $17 million into the elan 500 over the past five years. Three elan 500 units have been installed at customer sites and they are performing in line with expectations. Air T's debt and equity investment will allow Delphax to build inventories and initiate an effective sales and marketing strategy to accelerate the rollout of the elan 500. In addition, Air T is working with Delphax to develop a competitive leasing program.
"Air T has a growth mindset and long-term perspective. We seek to partner with seasoned managers who run high quality businesses. We believe our investment in Delphax comes at the right time and will allow Delphax to effectively market its elan 500 product."
About Air T, Inc.
Air T, through its subsidiaries, provides overnight air freight service to the express delivery industry, manufactures and sells aircraft deicers and other special purpose industrial equipment, and provides ground support equipment and facilities maintenance to airlines. Air T is one of the largest, small-aircraft air cargo operators in the United States. Air T's Mountain Air Cargo and CSA Air subsidiaries currently operate a fleet of single and twin-engine turbo-prop aircraft nightly in the eastern half of the United States, Puerto Rico and the Caribbean Islands. Air T's Global Ground Support subsidiary manufactures deicing and other specialized military and industrial equipment and is one of the largest providers of deicers in the world. The Global Aviation Services subsidiary provides ground support equipment and facilities maintenance to domestic airline customers. The company is headquartered in Maiden, North Carolina. Its common stock is publicly traded on the NASDAQ Stock Market under the symbol: AIRT. Additional information is available on the company's website at www.airt.net.
About Delphax Technologies Inc.
Delphax Technologies Inc. is a global leader in the design, manufacture and delivery of advanced digital print production systems. For more than 35 years, Delphax Technologies has pioneered high-speed digital imaging innovations that improve throughput and enhance efficiencies for publishers, direct marketers and other commercial print customers where cost and quality are important. The Delphax Technologies portfolio includes specialized full color inkjet or monochrome inkjet and toner technologies that are ideal for a wide range of applications over a broad spectrum of substrates from ultra-lightweight paper to heavy stock in both roll-fed and cut-sheet print environments. Delphax Technologies is headquartered in Minneapolis, Minn., USA with subsidiaries in Canada, the United Kingdom and France. The company's common stock is currently quoted over the counter under the symbol DLPX. Additional information is available on the company's website at www.delphax.com.
SOURCE Delphax Technologies Inc.