IBR REDUCES DEBT THROUGH A SERIES OF SHARE TRANSACTIONS
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES
TSX Venture Exchange symbol: IBR
VANCOUVER, Nov. 19 /CNW/ - International Bio Recovery Corporation ("IBR") (TSX-V:IBR), a developer and marketer of proprietary technologies for the production of organic-based, high-value agricultural products from organic wastes, announces that it has entered into oral agreements to retire outstanding demand loans in an aggregate principal and outstanding interest amount of $1,294,651 by issuing equity as follows:
- IBR will complete a non-brokered private placement of 11,024,728 units at a price of $0.055 per unit for proceeds of $606,360. Each unit will consist of one common share of IBR and one warrant entitling the holder to acquire one common share at any time within three years at a price per share of $0.12 in the first two years and $0.15 in the third year. The proceeds will be used to repay $606,360 of principal amount demand loans (the "Cash Settlement Loans") and approximately $160,000 of the approximately $257,000 outstanding interest on those loans will be forgiven.
- The balance of the interest owing on the Cash Settlement Loans, being $96,485.76, will become an interest free loan payable by the issuance of 1,378,368 common shares of IBR at a price per share of $0.07, such payment to be made on the earlier of demand and October 31, 2012.
- A demand loan in the principal amount of $350,000 will be repaid by issuing 5,000,000 units at $0.07 per unit. Each unit will consist of one common share of IBR and one warrant entitling the holder to acquire one common share at any time within two years at a price per share of $0.12. Accrued interest on this loan, currently $81,231, will become a term loan with interest at 4% per annum, such interest and principal to be paid on or before October 31, 2013.
Completion of these transactions is subject to satisfaction of a number of conditions, principally the approval of the TSX Venture Exchange and written agreements between the relevant parties.
Blair Heffelfinger, President and CEO of IBR, stated that he is pleased to reach agreement with the loan holders. "The conversion of these liabilities into shares and term debt reflects their confidence in our strategic plan and, at the same time, it significantly improves IBR's balance sheet and working capital and reduces our ongoing interest costs. Following on the re-start of the plant in September, this is an additional step in meeting our strategic goals."
About IBR
Located in North Vancouver, BC, IBR is committed to research and development to continue to improve the efficiency of its technology and the quality of Genica branded agricultural products. It is further committed to developing a world wide marketing capability to ensure market acceptance of the Genica products.
This news release contains certain statements that may be deemed "forward-looking" statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although IBR believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of IBR's management on the date the statements are made. Except as required by law, IBR undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
For further information: For further information:
Blair Heffelfinger President & CEO IBR (604) 924-1023 ext 316 (604) 924-1043 fax [email protected] |
Bob Nowell CFO & Corporate Secretary IBR (604) 924-1023 ext 306 (604) 924-1043 fax| [email protected] |
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