Trans-Lux Corp (TNLX)

[Enterprising Investor]

Trans-Lux Corporation Announces Plan for Rights Offering of Preferred Shares (6/25/15)

NEW YORK, NY--(Marketwired - Jun 26, 2015) - Trans-Lux Corporation (OTC PINK: TNLX) ("Trans-Lux" or the "Company"), a leading supplier of Digital Products and next generation LED lighting, announced today that it intends to conduct a rights offering to holders of its common stock to sell a new class of preferred shares for proceeds of up to approximately $10 million, before expenses. The announcement was made by Trans-Lux CEO and President, J.M. Allain.

In to the rights offering, Trans-Lux plans to distribute to holders of the Company's common stock transferable subscription rights to purchase shares of a new class of Series B Convertible Preferred Stock (the "Series B Preferred"), which will carry a 5% annual dividend and will be convertible into shares of common stock. The rights offering also will include an over-subscription right, which will entitle each rights holder that exercises their basic subscription rights in full the right to purchase additional shares of Series B Preferred that remain unsubscribed at the expiration of the rights offering, subject to allotment.

The Company intends to use the proceeds of the rights offering for repayment of certain debt and for general corporate purposes.

"While we have done much to firm up our balance sheet over the past three years, we have been handicapped by a lack of working capital. We believe that the proposed rights offering will put us in a very good position to grow our current vertical markets, and also allow us to capitalize on the burgeoning LED Lighting market," said Mr. Allain.

The Company filed a registration statement relating to the rights offering with the Securities and Exchange Commission (the "SEC") on June 25, 2015, and commencement of the rights offering is expected to occur promptly following the effectiveness of that registration statement. The final terms of the rights offering and the Series B Preferred, including the subscription price per share, the record and expiration dates and the conversion ratio for the Series B Preferred, will be included in the final prospectus relating to the rights offering that will be filed with the SEC.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any offer, solicitation or sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification of the securities under the securities laws of such state or jurisdiction.

About Trans-Lux

Trans-Lux Corporation is a leading designer and manufacturer of TL Vision digital video displays and TL Energy LED lighting solutions for the financial, sports and entertainment, gaming, education, government, and commercial markets. With a comprehensive offering of LED Large Screen Systems, LCD Flat Panel Displays, Data Walls and scoreboards (marketed under Fair-Play by Trans-Lux), Trans-Lux delivers comprehensive video display solutions for any size venue's indoor and outdoor display needs. TL Energy enables organizations to greatly reduce energy related costs with green lighting solutions. For more information please visit www.Trans-Lux.com.

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