LA MIRADA, Calif., Aug. 31 /PRNewswire-FirstCall/ -- Lexon Technologies, Inc. (OTC Bulletin Board: LEXO) today announced that to further the execution of a Letter of Intent with INTEK America, Inc. ("INTEK"), Lexon has now completed the due diligence of INTEK. Further, discussions also occurred to address the poor performance of Lexon's toner manufacturing operation ("Paragon Toner"). Although subject to a definitive agreement between the Parties and subject to Board and Shareholder approval, revised deal terms will include:
- Paragon Toner will be repurchased by the previous owners of Paragon Toner (current management of Lexon) immediately after merger. In return, management will transfer shares of Lexon to Lexon/INTEK and those shares will be subsequently retired or cancelled.
- Internet properties of Lexon will not be disposed of at time of reverse merger.
- Clause in the definitive agreement will allow for acquisition of Paragon at a later time.
- Company Name and Ticker code change will occur.
James Park, current CEO of Lexon, stated, "We felt because of our lackluster performance last quarter that including Paragon Toner at this time would hurt the momentum of the merged entity. Moreover, we have already implemented restructuring measures to bring our company back to profitability. Our first concern is always for our shareholders, and the future performance of Lexon."
Lexon is now currently identifying a suitable audit firm to begin and complete the audit of INTEK to be filed along with the 8k upon the time of merger. The proposed merger is subject to a definitive Merger Agreement between the Parties.
James Park further stated: "During the due diligence process, we are now more impressed with the growth potential of INTEK as a public entity. With strong, disciplined management, combined with healthy revenues and most importantly new business lines that are realistic and timely, we are more than optimistic for the future."
Updates to progress of this transaction will be provided in future press releases.
About INTEK (GoECOlife™)
Under the GoECOlife™ brand, INTEK manufactures energy-saving paper shredders, writing instruments made from recycled materials, eco-friendly remanufactured toner cartridges, BPI-certified biodegradable/compostable bio-plastics products (including a full range of servingware), and utilizes biodegradable and/or recycled materials in their packaging. In addition, GoECOlife™ products are carbon neutral in their manufacture and distribution, certified CarbonFree® by Carbonfund.org. Please visit www.goecolife.com.
About Lexon Technologies, Inc.
Lexon Technologies is an environmentally-responsible company, a manufacturer of recycled toner for laser printers, fax and multifunction copiers. The Company primarily services large retailers and distributors but also has a growing internet division. Lexon has over 350 product lines with product prices generally 30-60% less than original (OEM) toner cartridges. With a product defect percentage of less than 1%, Lexon also offers a 100% guarantee on all of its products.
The company, based in La Mirada, California (www.ptoner.com), has a 35,000 square foot factory on the premises, 86 employees, and the capacity to manufacture 50,000 cartridges per month and recycles 350 different models of toner cartridges.
SOURCE Lexon Technologies, Inc.