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by Stockwatch Business Reporter

The TSX Venture Exchange added 5.09 points to 700.51 Thursday. Charles Lilly and Andy DeFrancesco's halted NEX shell, NXA Inc. (NXI), plans to complete a reverse takeover of Ellipsiz Communications Taiwan Ltd., a company that sets up operational support systems (OSS) for telecom companies in Taiwan.

NXA will acquire Ellipsiz in an all-share deal such that the shareholders of Ellipsiz will control 89.29 per cent of the new company when the reverse takeover closes. NXA shareholders, who now own 22,406,001 shares, will own 2.6 per cent of the new company. The remaining 8.11 per cent of the new company will be held by new shareholders, who will subscribe to a $1-million (U.S.) private placement that NXA must complete in connection with this deal.

Michael Koh, a Hong Kong resident, co-founded Ellipsiz in 2007. It sets up operational support systems for various telecom companies in Taiwan. The purpose of an OSS is to control network activities within a telecom system to make it possible for the telecom company to provide uninterrupted service to customers. The OSS also collects user data and helps detect problems in case there are unexpected downtimes. NXA does not yet provide any financial details about its target, but those will arrive shortly. Mr. Koh, Ellipsiz's largest shareholder with about 60 per cent of the company, will become chairman when NXA completes this reverse takeover. He is an engineer and also the chairman of Pan Asia Mining Ltd., a Hong Kong Stock Exchange-listed iron ore explorer with a property in the Philippines. Ellipsiz's second-largest shareholder with about 30 per cent of the company is its president, Sam Tan, a Canadian-educated Singapore resident. He used to work as a software engineer at IBM Canada. Hans Chang, Ellipsiz's chief executive officer, owns 5 per cent of the company. He is an engineer who used to work for Siemens Telecommunication System Ltd.

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