H2O Innovation Announces Proposed Private Placements for Aggregate Gross Proceeds of CAN$2.1 Million

NOT FOR DISTRIBUTION TO THE U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

All amounts in Canadian dollars unless otherwise stated.

QUEBEC CITY, June 24, 2010 /CNW Telbec/ - H2O Innovation Inc. ("H2O Innovation" or the "Company")(TSX VENTURE:HEO) (ALTERNEXT:MNEMO:ALHEO) announces that it has entered into a letter of intent with Le Fonds d'investissement RÉA II Natcan Inc. ("Fonds RÉA II") whereby Fonds RÉA II has indicated its interest to acquire from the Company, by way of a non-brokered private placement, a number of 1,882,353 common shares in the share capital of the Company (the "Common Shares") at a price of $0.425 per share for aggregate gross proceeds of $800,000 (the "Fonds RÉA II Offering").

The Company also announces that it intends, concurrently with the completion of the Fonds RÉA II Offering, to complete a non-brokered private placement with a group of private investors (the "Private Investors Offering" and, collectively with the Fonds RÉA II Offering, the "Private Offerings"), in which Mr. Richard A. Hoel, director of H2O Innovation and holder of more than 10% of the Common Shares, and Mr. James L. Peterson, Chief Operating Officer of H2O Innovation, would participate. As part of the Private Investors Offering, the Company contemplates the issuance of 3,073,531 Common Shares at a price of $0.425 per share for aggregate gross proceeds of approximately $1,306,000.

The Company will use the proceeds of the Private Offerings for its working capital and general corporate purposes.

Closing of the Private Offerings is subject to customary closing conditions including the approval of TSX Venture Exchange Inc. The closing of the Private Offerings is expected to take place on or around June 30, 2010.

Prospective disclosures

Certain statements set forth in this press release regarding the operations and the activities of H2O Innovation as well as other communications by the Company to the public that describe more generally management objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of securities legislation. Forward-looking statements concern analysis and other information based on forecast future results and the estimate of amounts that cannot yet be yet determined. Forward-looking statements include the use of the words "expect", "believe", "estimate" and other similar terms as well as those usually used in the future and the conditional, notably regarding certain assumptions as to the success of a venture. Those forward-looking statements involve a number of risks and uncertainties which may result in actual and future results of the Company to be materially different than those indicated. Information about the risk factors to which the Company is exposed is provided in the Annual Information Form dated September 28, 2009 available on SEDAR (www.sedar.com). Unless required to do so pursuant to applicable securities legislation, H2O Innovation assumes no obligation to update or revise forward-looking statements contained in this press release or in other communications as a result of new information, future events and other changes.

About H2O Innovation 

With 10 years of experience developing water treatment solutions, H2O Innovation is establishing itself as a key player in sustainable development and clean technologies in North America and abroad. H2O Innovation designs, develops, produces, and integrates state-of-the-art custom-built water treatment systems for the production of drinking water, the reclamation of water, the treatment of wastewater and industrial process water in the municipal, commercial, industrial, oil & gas, mining, and energy markets. Additionally, the Company offers complete operating and maintenance solutions for membrane filtration and reverse osmosis systems. H2O Innovation has approximately 90 employees and eight offices including three manufacturing plants in Canada and the United States and is a founding partner of H2O Innovation India, a joint venture with Chembond Chemicals Ltd. of Mumbai, India. Shares of H2O Innovation are listed on the TSX Venture Exchange (HEO) as well as on the NYSE Euronext Alternext Exchange (ALTERNEXT:MNEMO:ALHEO). For more information about H2O Innovation, visit www.h2oinnovation.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the Alternext Exchange accepts responsibility for the adequacy or accuracy of this release.

SOURCE H2O INNOVATION INC.

For further information:

Source:
H2O Innovation Inc.
www.h2oinnovation.com
or
Contact:
Guillaume Ducharme
1-418-928-0234
guillaume.ducharme@h2oinnovation.com

Organization Profile

H2O INNOVATION INC.

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