Innovente Obtains Financing of an Aggregate of $13.6 Million
(firmenpresse) - QUEBEC CITY, QUEBEC -- (Marketwire) -- 11/25/11 -- Innovente Inc. (TSX VENTURE: IGE) ("Innovente" or the "Corporation") is pleased to announce a financing for an aggregate amount of approximately $13.6 million consisting of (i) a previously announced brokered private placement of common shares of the Corporation for $5,076,650 (the "Private Placement") and (ii) a debt financing for a total of $8,500,000.
The net proceeds of this financing will enable the Corporation to complete its power generation project using residual biomass in St.Patrice, Quebec. The commencement of commercial operations of the combined heat and power (CHP) plant expected in Fall 2012 will mark the beginning of electricity delivery to Hydro-Quebec. The proceeds of the financing will also be used for the development of new projects: " The St. Patrice project paves the way for replicating our regional model in Quebec, Ontario, the Maritimes and New England", said Mr. Richard Painchaud, President and CEO of Innovente.
Innovente closed today the first tranche of the Private Placement by issuing 8,230,273 common shares (the "Common Shares"), at a price of $0.55 per Common Share, for total gross proceeds of $4,526,650. The Corporation also expects to hold a final closing for the second tranche of the Private Placement in January 2012 for the 1,000,000 Common Shares to be subscribed by an institutional investor at a price of $0.55 per Common Share for gross proceeds of $550,000. The majority of the shares subscribed today and of the shares that will be subscribed in January 2012 have been subscribed by important financial institutions. The securities issued pursuant to the Private Placement will be subject to a 4-month and one day restricted period expiring on March 26, 2012. National Bank Financial inc. acted as the agent in the context of the Private Placement.
Innovente also announced that it has received and accepted formal proposals from Investissement Quebec, National Bank of Canada and Caisse Desjardins regarding a debt financing for an aggregate amount of $8,500,000. The Corporation intends to close the debt financing in the coming weeks.
In the context of the closing of the Private Placement, Innovente (i) paid a cash commission of $316,856, and (ii) issued 576,119 warrants (the "Broker Warrants") to National Bank Financial inc. for its services. Each Broker Warrant entitles the holder to acquire one Common Share of Innovente at $0.85 for a period of 36 months following the closing of the Private Placement.
Innovente has received an advance income tax ruling from the Ministere du Revenu du Quebec confirming that Innovente meets the criteria of a "qualified issuing corporation" in accordance with the Quebec Stock Savings Plan II and that the common shares of Innovente that will be issued in the context of the second closing, if subscribed by a qualified mutual fund, will be "qualifying shares" as per such plan.
About Innovente
Innovente (TSX VENTURE: IGE) produces electricity from residual biomass. We call this intelligent electricity because it does not require fossil fuels, nuclear fission products or disruption of the food chain. Innovente's intelligent electricity is produced locally from waste and residues in the region where it operates.
At the heart of Innovente's technologies is a patented drying process, developed over the last 10 years by the Research and Development Institute for the Agri-Environment (IRDA). This biological drying process (biodrying) allows Innovente to extract water from waste and transform it into biofuel. In addition to intelligent electricity, Innovente produces useful heat and fertilizers and helps reduce greenhouse gas emissions.
Innovente is completing its first plant in St. Patrice, Quebec. The plant will produce 4.6 MW of electricity that will be sold to Hydro-Quebec over a 25-year period according to an existing power purchase agreement. With this first plant, Innovente launches its growth strategy and plans to replicate this project in Canada, the U.S. and worldwide.
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Innovente Inc. to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as these terms are defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Richard Painchaud
President and CEO
+1-418-692-1011 ext. 201
Genevieve Blais
Director of Communications
+1-418-692-1011 ext. 200
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Datum: 25.11.2011 - 14:47 Uhr
Sprache: Deutsch
News-ID 91115
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Alternative Energy
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