Innoventé presents an update and its quarterly financial results

QUÉBEC, Dec. 20, 2013 /CNW Telbec/ - Innoventé Inc. (TSXV: IGE) ("Innoventé" or the "Corporation") today presented an update and its quarterly results for the period ended October 31, 2013, a quarter that featured the generation of its first revenues.

Highlights and update

  • The Corporation proceeded to the commercial commissioning of its first power plant in Saint-Patrice-de-Beaurivage and began the delivery of power under its power purchase agreement with Hydro-Québec. The Corporation thus generated its first revenues from energy sales. Since its commissioning, the plant produces power from forest residues. Biodryers are scheduled to gradually be put in service through the fall of 2014 and the Corporation will use funds from a previously announced Investissement Québec financing and a recently obtained contribution from Canada Economic Development to cover the related costs estimated at $1.9 million.
  • In November, the Corporation completed the acquisition of the former RockTenn cardboard mill in Matane, in order to develop a 7.2 MW cogeneration power plant in accordance with the 25-year agreement already made with Hydro-Québec.
  • The Corporation began the first steps leading to the construction of the Trois-Rivières plant. In July 2013, the Corporation made an agreement for the acquisition of an existing cogeneration power plant in New Hampshire, which the Corporation plans to dismantle and rebuild in Trois-Rivières.
  • For the commissioning of the Trois-Rivières and Matane plants, Innoventé estimates its financing needs at approximately $64 million. The Corporation is working to raise the necessary financing and anticipates such financing to be mainly from debt or other contributions.
  • The Hydro-Québec Power Purchase Program for electricity produced by cogeneration from forest residual biomass cogeneration, under which the Corporation obtained its Trois-Rivières and Matane contracts, which was scheduled to end in December 2013, has been extended by one year. Innoventé is considering the opportunity of submitting new projects in connection with this program.

Financial statements for the periods ended October 31, 2013 and 2012 (unaudited)

               
  Quarters ended
October 31
Six-month periods
ended October 31
  2013
$
2012
$
2013
$
2012
$
Revenues 114,594         - 114,594         -
Operating expenses 558,480         - 558,480         -
Research and development expenses 71,586 709,770 330,732 1,111,309
Administration expenses 340,746 137,654 833,518 253,900
Financial expenses 109,481         - 109,481         -
Overall net income/loss 962,476 802,796 1,703,280 1,318,224
Basic and diluted loss per share 0.022 0.021 0.040 0.034
         

     
  October 31, 2013
$
April 30, 2013
$
Cash and cash equivalents 1,072,022 1,639,178
Total assets 24,055,618 21,738,627
Total non-current liabilities (including current portion of long-term debt due in less than one year) 12,428,855 10,789,065

  • Innoventé realized sales revenues of $114,594, including energy sale revenues of $108,050, for the period between the commercial commissioning of the Saint-Patrice-de-Beaurivage facility and the end of the quarter;
  • Innoventé made disbursements of $1,539 294 for tangible fixed assets, mainly for its Saint-Patrice-de-Beaurivage facility;
  • Innoventé received gross proceeds of $1,000,000 from a private placement of common shares with the Caisse de dépôt et placement du Québec;
  • Innoventé received amounts of financing by long-term borrowing for a total of $1,000,000, mainly from Investissement Québec for an amount of $500,000 and from its bankers for $450,000; and
  • The net loss is $962,476 ($0.022 per share) for the quarter and $1,703,280 ($0.040 per share) for the six-month period ended October 31, 2013, compared to a net loss of $802,796 ($0.013 per share) for the same quarter of 2012 and 1 318 224 $ for the six-month period ended October 31, 2012,

Granting of stock options

The Corporation granted a total of 100,000 stock options to one of its officers. Each stock option allows its holder to subscribe for one common share of the Corporation at a price of $0.70 per share and may be exercised during a 10-year period after the grant date. These options will be acquired over a four-year period and are governed by the Corporation's Stock Option Plan.

About Innoventé

Based in Québec City, Innoventé produces renewable energy and provides communities with a green and sustainable solution for the management or organic residues through its technology patented in Canada and the United States. Innoventé's shares are listed on the TSX Venture Exchange under the symbol IGE (TSXV: IGE). innovente.ca.

Additional information regarding the periods ended October 31, 2013 and 2012

The financial information for the periods ended October 31, 2013 and 2012 should also be read in conjunction with the Corporation's annual financial statements and Management's Discussion and Analysis for the years ended April 30, 2013 and 2012 dated August 26, 2013. These documents are available at sedar.com.

Method of presentation of information

The financial information for the periods ended October 31, 2013 and April 30, 2013 was established in accordance with International Financial Reporting Standards (« IFRS »), as published by the International Accounting Standards Board (« IASB »).

Caution Regarding Forward-Looking Information

Certain statements contained in this document, including those that express management's expectations or estimates regarding the Corporation's future performance, are "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information is necessarily based on a certain number of estimates and assumptions which, while considered plausible by the management when they are made, are inherently subject to significant commercial, economic and competitive risks and uncertainties. We advise investors not to rely unduly on forward-looking information. The Corporation further declines any intention or obligation to publicly update this forward-looking information, whether due to new information, or future or other events.

Neither the TSX Venture Exchange nor its regulation service provider (as these terms are defined in policies of the TSX Venture Exchange) bears responsibility for the adequacy or accuracy of this press release.

 

SOURCE Innoventé Inc.

For further information:

and interview requests: 

Caroline Bouchard
Director of Communications, Innoventé
Tel: 418-692-1011 Ext. 211
cbouchard@innovente.ca