QUÉBEC CITY, Nov. 25, 2011 /CNW Telbec/ - Innoventé Inc. (TSX
VENTURE:IGE) ("Innoventé" or the "Corporation") is pleased to announce
a financing for an aggregate amount of approximately $13.6 million
consisting of (i) a previously announced brokered private placement of
common shares of the Corporation for $5,076,650 (the "Private
Placement") and (ii) a debt financing for a total of $8,500,000.
The net proceeds of this financing will enable the Corporation to
complete its power generation project using residual biomass in
St.Patrice, Quebec. The commencement of commercial operations of the
combined heat and power (CHP) plant expected in Fall 2012 will mark the
beginning of electricity delivery to Hydro-Quebec. The proceeds of the
financing will also be used for the development of new projects: " The
St. Patrice project paves the way for replicating our regional model in
Quebec, Ontario, the Maritimes and New England", said Mr. Richard
Painchaud, President and CEO of Innoventé.
Innoventé closed today the first tranche of the Private Placement by
issuing 8,230,273 common shares (the "Common Shares"), at a price of
$0.55 per Common Share, for total gross proceeds of $4,526,650. The
Corporation also expects to hold a final closing for the second tranche
of the Private Placement in January 2012 for the 1,000,000 Common
Shares to be subscribed by an institutional investor at a price of
$0.55 per Common Share for gross proceeds of $550,000. The majority of
the shares subscribed today and of the shares that will be subscribed
in January 2012 have been subscribed by important financial
institutions. The securities issued pursuant to the Private Placement
will be subject to a 4-month and one day restricted period expiring on
March 26, 2012. National Bank Financial inc. acted as the agent in the
context of the Private Placement.
Innoventé also announced that it has received and accepted formal
proposals from Investissement Québec, National Bank of Canada and
Caisse Desjardins regarding a debt financing for an aggregate amount of
$8,500,000. The Corporation intends to close the debt financing in the
In the context of the closing of the Private Placement, Innoventé (i)
paid a cash commission of $316,856, and (ii) issued 576,119 warrants
(the "Broker Warrants") to National Bank Financial inc. for its
services. Each Broker Warrant entitles the holder to acquire one Common
Share of Innoventé at $0.85 for a period of 36 months following the
closing of the Private Placement.
Innoventé has received an advance income tax ruling from the Ministère
du Revenu du Québec confirming that Innoventé meets the criteria of a
"qualified issuing corporation" in accordance with the Quebec Stock
Savings Plan II and that the common shares of Innoventé that will be
issued in the context of the second closing, if subscribed by a
qualified mutual fund, will be "qualifying shares" as per such plan.
Innoventé (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.
Innoventé's intelligent electricity is produced locally from waste and
residues in the region where it operates.
At the heart of Innoventé'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 Innoventé to extract water from waste and
transform it into biofuel. In addition to intelligent electricity,
Innoventé produces useful heat and fertilizers and helps reduce
greenhouse gas emissions.
Innoventé 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, Innoventé 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 Innoventé 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:
President and CEO
+1-418-692-1011 ext. 201
Director of Communications
+1-418-692-1011 ext. 200