QUEBEC CITY, Feb. 13, 2013 /CNW Telbec/ - Innovente Inc. (TSXV: IGE)
("Innovente" or the "Corporation") is pleased to announce that, further
to its previous announcement that it was in discussions with an
institutional lender, it has entered into a loan agreement with
Investissement Québec ("IQ") for a loan of an amount of up to
The loan will bear interest at the prime rate used by major banks
(currently 3%) plus 7.5% and its principal will be repayable, starting
36 months after the first disbursement, in monthly instalments over a
period of seven years. In addition, starting on October 31, 2017, the
Corporation will pay IQ annually an amount equal to 4% of its annual
net sales to repay the loan, subject to the right of the Corporation to
limit such annual amount to $125,000. The loan will be secured and the
loan agreement contains additional representations and covenants
customary for a loan of this nature.
As a consideration for the loan, the Corporation has agreed, subject to
regulatory approval, to issue to IQ common share purchase warrants to
acquire up to 470,588 common shares of the Corporation at a price equal
to the higher of (i) $0.85; or (ii) the minimum exercise price
permitted under the policies of the TSX Venture Exchange. The common
share purchase warrants will be issued upon each disbursement of the
loan, in proportion to the amount then disbursed.
The proceeds from the loan will be used by Innovente to acquire
equipement in connection with the construction of the
Saint-Patrice-de-Beaurivage project and to fund its working capital.
Based in Quebec City, Innovente produces renewable energy and provides
communities with a green and sustainable solution for the management of
residual organic matter. Innovente stock is listed on the TSX Venture
Exchange under the ticker symbol IGE (TSXV: IGE). www.innovente.ca
Disclaimer regarding forward-looking statements
Certain statements included herein may constitute "forward-looking
statements" within the meaning of applicable securities laws.
Forward-looking statements are necessarily based on a number of
estimates and assumptions that, while considered reasonable by
management when they are made, are inherently subject to significant
business, economic, and competitive uncertainties and contingencies.
Investors are cautioned not to place undue reliance on forward-looking
statements. The Corporation disclaims any intent or obligation to
update publicly these forward-looking statements, whether as a result
of new information, future events or other development.
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 press
SOURCE: Innoventé Inc.
For further information:
Director of Communications, Innovente
Tel: 418 692-1011 ext. 200