TSX VENTURE EXCHANGE: AVI
QUEBEC CITY, Feb. 10 /CNW Telbec/ - Advitech Inc. ("Advitech" or the
"Corporation") (TSX Venture Exchange: AVI) announces the execution of a
binding term sheet for a $1 million private offering and changes to its
EQUITY FINANCING AND CASH POSITION
Advitech and AgeChem Venture Fund L.P. ("AgeChem"), which currently holds
an equity interest of 11.05% in the Corporation, entered into a binding term
sheet providing for an equity investment by AgeChem in Advitech of $1,000,000
through the issuance of a total of 50,000,000 units (a "Unit") at a price of
$0.02 per unit. Each Unit is to be comprised of one common share of the
Corporation (a "Common Share") and one common share purchase warrant (a
"Warrant"). Each Warrant will entitle the holder thereof the right to purchase
one additional Common Share at a price of $0.05 for the first year and $0.10
for the next four years.
The closing of this transaction is subject to (i) the approval of the TSX
Venture Exchange and of the shareholders of Advitech, (ii) the conversion of
Advitech's currently outstanding debentures into common shares according to
conditions agreed with AgeChem, and (iii) the appointment at closing of two
additional directors nominated by AgeChem to the Corporation's Board of
Directors. As of today, the Corporation has received undertakings by its
principal debentures holders of their agreement for the conversion of their
debentures at a conversion price of $0.02 per share. Advitech expects to hold
a special shareholders' meeting and to complete this transaction by mid-April
"This financing will fuel Advitech's organic growth and will allow the
Corporation to invest in its marketing activities. The business plan approved
by the Board of Directors in December 2008 also includes external growth
through mergers and acquisitions" commented Mr. Renaud Beauchesne, President
and Chief Executive Officer of Advitech. Mr. Beauchesne further added that
"this transaction, during these difficult market conditions, validates the
Corporation's business plan and objectives of Advitech."
"This financing will consolidate Advitech's very strong products'
pipeline and will enable the Corporation to execute on their commercial
development programs and increase their sales in the U.S., Europe and Asia"
stated Mr. Louis Lacasse, Managing Partner of AgeChem.
As of January 31, 2009, Advitech had a cash position of approximately
$96,000. To preserve its current working capital until the successful
completion of the financing described above, Advitech has implemented a
program to reduce its expenses.
RECENT CHANGES IN MANAGEMENT TEAM
Effective as of January 1, 2009, Mr. Christian Labbé, formerly Finance
Director of the Corporation, was appointed Vice-President and Chief Financial
Officer of the Corporation. "Mr. Labbé, who joined Advitech in September 2007,
has demonstrated the leadership and professionalism needed to fulfill the
responsibilities of a CFO. Considering the financial plan of the Corporation
and our current growth strategy, his skills will be better used in this
position" said Mr. Beauchesne, President and Chief Executive Officer at
Mr. Luc Clouâtre, formerly Vice-President Business Development, Sales and
Marketing, resigned from his position with Advitech in December 2008. The
Corporation is currently evaluating the need to replace Mr. Clouâtre.
Mr. Richard Lacerte, formerly Director of Sales and Marketing, also
resigned from his position to pursue a new career opportunity. He was replaced
at the beginning of January 2009 by Mrs. Pascale LaCerte who held different
sales and marketing positions in companies such as Cognicase, Yokohama and
ABOUT AGECHEM VENTURE FUND L.P.
The AgeChem Venture Fund L.P. is currently investing in companies
developing therapeutics targeting age-related diseases. The range of diseases
and chronic conditions associated with aging provides a breadth of attractive
investment opportunities. AgeChem's principals have been active in the
healthcare sector for over 15 years having made investments in several private
and public entities. In addition to AgeChem, some of the principals are also
managing the GeneChem Technologies Venture Fund L.P. and the GeneChem
Therapeutics Venture Fund L.P. (www.genechem.com).
ABOUT ADVITECH INC. www.advitech.com:
Advitech is a health sciences and technology company with a mission to
discover and commercialize proprietary and evidence-based natural health
products. Effective and safe, these products play a role in the prevention of
immune-mediated inflammatory disorders, such as psoriasis and inflammatory
bowel disease. Advitech produces Dermylex(R) for the treatment of
Advitech has drawn up a research program to develop new applications
related to wound healing. This development is derived from both its XP-828L
and IM technological platforms.
This press release contains forward-looking statements, which reflect the
Corporation's current expectations regarding future events. The
forward-looking statements involve risks and uncertainties. Actual results
could differ materially from those projected herein. Neither TSX Venture
Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Advitech Inc.: Renaud Beauchesne, MBA,
President and Chief Executive Officer, (418) 686-7498, ext. 228,
email@example.com; Serge Comeau, Investor's relations, (514) 862-4160,