MONTREAL, Sept. 20, 2011 /CNW Telbec/ - Noveko International Inc. (TSX:
EKO) (the "Company") is pleased to announce that it has finalized the
terms and conditions of its previously announced $6 million financing.
Under the terms of a commitment letter issued by Toronto-based
investment firm Third Eye Capital Corporation (the "Agent"), the Agent
has undertaken to provide up to $4 million in credit facility and
$2 million in convertible debentures. Both parties intend to close on
or about September 26th, 2011 (the "Closing").
The credit facility will be a senior secured revolving facility in the
amount of up to $4 million made available to the Company for a twenty
four-month period from the Closing (the "Maturity Date"), and subject
to the Company's right to terminate the credit facility after the first
anniversary of the Closing. The senior secured convertible debentures
in the aggregate amount of $2 million will be issued on the Closing
date. Both the credit facility and the debentures will bear interest at
an annual rate, compounded monthly, and paid monthly in arrears equal
to a minimum of 12%, adjusted upward for any changes in a selected
chartered bank prime rate. A 1% per annum standby fee, payable monthly
in arrears, will also be due on the portion of the credit facility not
The debenture holder shall have the right, at its sole discretion and at
any time during the term, to convert, in whole or in part, the
principal of the debentures into Class A shares of the Company, at a
conversion price of 0.60$ per share. All advances under the credit
facility, as well as the remaining non-converted portion of the
debentures, shall be reimbursed by the Company on the Maturity Date.
The remaining portion of the debentures, if any, would then be
redeemable at 1.5 times their par value.
Noveko International Inc. offers innovative solutions in the
environmental and medical fields worldwide. Through its subsidiaries,
the Company specializes primarily in the following business segments:
the development, manufacturing and marketing of derivative products
from its patented antimicrobial filtration technologies, mainly air
filters, surgical masks and respirators, as well as other products with
antibacterial properties such as hand sanitizers - and the development,
manufacturing and marketing of medical equipment, including portable
real-time ultrasound scanners for use in human and veterinary medicine.
Certain statements set forth in this press release constitute
forward-looking statements. In some cases, these statements are
identified by the use of terms such as "may", "could", "might",
"intend", "should", "expect", "project", "plan", "believe", "estimate"
or other comparable variants. These statements are based on the
information available at the time they are written, on assumptions made
by management and on the expectations of management, acting in good
faith, regarding future events, including those relating to economic
conditions, fluctuations in exchange rates and operating expenses, and
the absence of unusual events entailing supplementary expenditures.
Although management considers these assumptions and expectations
reasonable based on the information available at the time they are
written, they could prove inaccurate. Forward-looking statements are
also subject, by their very nature, to known and unknown risks and
uncertainties such as those related to the industry, acquisitions,
labor relations, credit, key officers, supply and product liability.
The actual results of Noveko International Inc. could differ materially
from those indicated or underlying these forward-looking statements.
The reader is therefore recommended not to unduly rely on these
forward-looking statements. Forward-looking statements do not reflect
the potential impact of special items, any business combination or any
other transaction that may be announced or occur subsequent to the date
hereof. Unless otherwise required under securities laws, the Company
does not intend and undertakes no obligation to update or revise the
SOURCE NOVEKO INTERNATIONAL INC.
For further information:
Chantal Vennat, Director,
Investor Relations and Corporate Communications
Noveko International Inc.
Tel: (514) 875-0606