Luxor Industrial Corp. V.LRL

Corporate update.

[Stock20]

Looks like they have realize their mistake and now they are back to 30% margin level with lower overheads. It might turn out better next fincial. Once they update for PP. it will be a game changer. Bought at 0.10 cents and some today. Hope I am doing right if not it will be a long hold.

Corporate update.
Vancouver, British Columbia – January 17, 2017 – Luxor Industrial Corporation wishes to provide an update on corporate activities. In November, 2016 Luxor announced that it had entered into a letter agreement with a syndicate of agents led by Haywood Securities Inc. and including Cormark Securities Inc. to market on a best efforts basis a private placement of up to 16,666,667 units (“Units”) at a price of $0.30 per Unit for total proceeds of up to $5,000,000. The net proceeds of the Offering were to be used for working capital for its Mill Frame LLC sales and resultant ramp up of its Mill Frame Inc. operations. Luxor is not proceeding with this offering. The Company is currently assessing alternative financing including bank facilities, loans and equity financing. Luxor will continue to focus on profitability. In the 2016 start-up year for turnkey framing, margins were at low levels. The Company will not proceed with certain jobs awarded for 2017 where margins were inadequate. The current order file for Mill Frame LLC’s 2017 projects has been reduced to approximately $ 11,000,000 with these projects priced at more than 20 percent higher than 2016. Luxor has initiated major reductions in overheads including elimination of five full time salaried positions, wage reductions of 20 to 50 percent for the majority of remaining salaried employees and reduction of office space. Luxor’s wall panel plant automation will be completed in February and production capacity will almost triple without additional employees. In the first quarter of 2016, Luxor was awarded a US $ 6 Million turnkey framing contract by The Weitz Company. A Demand Letter has been forwarded to Weitz for claims and a lien has been placed in the amount of US $ 1,793,558 for significant delays and extra work performed by Mill Frame LLC. The Company’s other subsidiary, Western Interlok Systems Ltd, maintained sales levels and was profitable in 2016. Western Interlok anticipates substantial growth in 2017 primarily in access and crane mat manufacturing as the result of special projects and improving conditions in the oil and gas industry. The mat line was upgraded in 2016 resulting in the doubling of production capacity. The Company will keep shareholders advised of any further developments.