Innovente Announces Its Quarterly Financial Results and Presents a Corporate Update
QUEBEC CITY, March 31, 2014 /CNW Telbec/ - Innovente Inc. (TSX-V: IGE) ("Innoventé" or the "Corporation") announces its results for the quarter ended January 31, 2014 and presents a corporate update.
During this quarter, the Saint-Patrice-de-Beaurivage plant continued its ramp up period, allowing for the production of 1,753,833 kWh, representing 19% of the total level of power to be delivered to Hydro-Québec for a quarter in accordance with the purchase agreement between Innoventé and Hydro-Québec. In February 2014, this production level increased to 30% and then to 51% for a period of 20 days for the period of March 1st to March 20, 2014. Although the progression of the Saint-Patrice-de-Beaurivage plant is slower than initially expected, the Corporation believes it is in line with the progression level of other plants in the industry regarding the time required to achieve the maximum capacity for this type of plant. "We are confident that the corrective actions taken will improve the performance of the Saint-Patrice-de-Beaurivage plant and will allow us to reach our goals in the coming months delivering 100 % of level of power to be delivered to Hydro-Québec under the agreement" explains Mr. Richard Painchaud, Innoventé's President and Chief Executive Officer.
Matane and Trois-Rivières
Innoventé completed, during this quarter, the preliminary engineering of the Matane and Trois-Rivières projects. The completion schedule of these two projects is now linked to the finalization of their respective financing arrangements. Innoventé is currently having discussions with potential lenders and investors in connection with such financing. "We believe that the completion of the financing of the Matane and Trois-Rivières projects will be related to our capacity to reach the goals of level of power at Saint-Patrice-de-Beaurivage plant" says Mr. Richard Painchaud, Innoventé's President and Chief Executive Officer.
Financial statements for the periods ended January 31, 2014 and 2013 (unaudited)
ended January 31
|Research and development costs||-||548,931||330,732||1,660,240|
|Net loss and comprehensive loss||2,209,782||708,389||3,913,062||2,026,613|
|Basic and diluted loss per share||0.050||0.018||0.090||0.052|
|January 31, 2014||April 30, 2013|
|Cash and cash equivalents||183,858||1,639,178|
|Total non-current liabilities (including current portion of long-term debt due in less than one year)||15,289,531||10,789,065|
- Innoventé realized sales revenues of $331,721, including energy sale revenues of $320,914, for the period between the commercial commissioning of the Saint-Patrice-de-Beaurivage plant and the end of the quarter;
- Innoventé made disbursements of $3,062,346 for property, plant and equipment, mainly for its Saint-Patrice-de-Beaurivage plant;
- Innoventé received amounts of financing by long-term borrowing for a total of $2,025,000, since the beginning of the year 2014, mainly from Investissement Québec for an amount of $1,000,000 and from its bankers for $900,000.
Innoventé has, after the end of the quarter, entered into a loan agreement with Investissement Québec for a loan of an amount of up to $2,000,000. The loan will bear interest at a fixed rate of 10% compounded monthly and its principal will be repayable, starting 12 months after the first disbursement, in monthly instalments over a period of four years. Disbursement of the loan will be made in instalments, subject to certain conditions being met by Innovente and the Corporation received the first disbursement of 350,000 $ on March 17, 2014. The proceeds from the loan will be used by Innovente to fund its working capital. The loan agreement contains additional representations and covenants customary for a loan of this nature.
During the quarter, in November 2013, the Corporation completed the acquisition of the assets of the RockTenn cardboard mill located in Matane. In consideration, the Corporation paid an amount of $1 and agreed to take on a seller's long-term liability due to a government entity, up to a maximum amount of $3,500,000 as of the acquisition date. The liability would terminate without cash disbursement from the Corporation upon the achievement of certain contractual milestones. Once these milestones are achieved, the Corporation has also agreed to pay an amount of $3,000,000 to the seller. It is therefore expected that the total amounts to be paid by the Corporation for this transaction will not exceed a maximum amount of $3,500,000 under the various agreements.
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 January 31, 2014 and 2013
The financial information for the periods ended January 31, 2014 and 2013 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 January 31, 2014 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, unless required by applicable law.
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:
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Tel: 418-692-1011 Ext. 211