QUÉBEC CITY, Jan. 10, 2012 /CNW Telbec/ - Innovente Inc. (TSX
VENTURE:IGE) ("Innovente" or the "Corporation") is pleased to announce
the closing of the second tranche of a private placement financing for
an additional amount of $550,000. This amount represents the second
tranche of the private placement announced on November 25, 2011, which
totals aggregate gross proceeds of $5,076,650 (the "Private
Placement"), including the amount of the first closing.
The net proceeds of the Private Placement will enable the Corporation to
complete its power generation project using residual biomass in
St.Patrice, Quebec and will also be used for the development of new
projects. Moreover, Innoventé is preparing a proposal for its second
combined heat and power plant project as part of the new Power Purchase
Program for electricity derived from residual biomass announced by
Hydro-Québec on December 20, 2011. This program plans for the purchase
of 150 MW of electricity at a price of 10.6 ¢ / kWh for up to 25 years.
Innovente closed today the second tranche of the Private Placement by
issuing 1,000,000 common shares (the "Common Shares") to an
institutional investor, at a price of $0.55 per Common Share, for total
gross proceeds of $550,000. Under the terms of the Private Placement,
Innovente has issued an aggregate of 9,230,273 Common Shares for total
gross proceeds of $5,076,650. The securities issued pursuant to the
second tranche of the Private Placement will be subject to a 4-month
and one day restricted period expiring on May 11, 2012.
National Bank Financial inc. acted as agent in the context of the
Private Placement. For its services with respect to the closing of the
second tranche of the Private Placement, Innovente (i) paid a cash
commission of $38,500, and (ii) issued 70,000 warrants (the "Broker
Warrants") to National Bank Financial inc. 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 second tranche of the
Innovente has received an advance income tax ruling from the Ministère
du Revenu du Québec 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 issued in the
context of the second closing, if subscribed by a qualified mutual
fund, are "qualifying shares" as per such plan.
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-Québec 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.
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
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.
SOURCE: Innoventé Inc.
For further information:
Director of Communications
+1-418-692-1011 ext. 200
+1-418-692-1011 ext. 201