H2O Innovation Announces Closing of Previously Announced 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 29, 2010 /CNW Telbec/ - H2O Innovation Inc. ("H2O Innovation" or the "Company") (TSX VENTURE:HEO) (ALTERNEXT:MNEMO:ALHEO) announces it has completed the previously announced non-brokered private placement with Le Fonds d'investissement RÉA II Natcan Inc. ("Fonds RÉA II") whereby Fonds RÉA II has acquired from the Company 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 has completed, concurrently with the completion of the Fonds RÉA II Offering, the previously announced 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, are participants. As part of the Private Investors Offering, the Company issued 3,073,531 Common Shares at a price of $0.425 per share for aggregate gross proceeds of approximately $1,306,000.
The Common Shares issued as part of the Private Offerings are subject to a statutory four-month hold period.
The Company will use the proceeds of the Private Offerings for its working capital and general corporate purposes.
Merger of U.S. operating subsidiaries and adoption of H2O Innovation name for all U.S. operations
As part of efforts to continuously improve its business and administrative processes, H2O Innovation will be merging its U.S. operating subsidiaries on July 1, 2010. Consequently, Membrane Systems Inc., Wastewater Technologies Inc. and Itasca Systems Inc. will be merged on July 1, 2010 and continue their activities under the name of H2O Innovation USA, Inc.
This merger will streamline the Company's structure and several of its administrative and financial processes, bringing increased efficiency, better integration of its operations, and a reinforced, unified brand image for all its activities related to the sale of water treatment systems and equipment. For marketing purposes, the Professional Water Technologies brand name will continue to be used to market the Company's line of specialty chemicals for reverse osmosis and ultrafiltration water treatment systems.
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 (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.
For further information:
H2O Innovation Inc.
Guillaume Ducharme
1-418-928-0234
[email protected]
www.h2oinnovation.com
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