QUÉBEC CITY, Jan. 10, 2012 /CNW Telbec/ - Innovente Inc. (TSX VENTURE:IGE) ("Innovente" or the "Corporation") is pleased to announce the closing of the second tranche of a private placement financing for an additional amount of $550,000. This amount represents the second tranche of the private placement announced on November 25, 2011, which totals aggregate gross proceeds of $5,076,650 (the "Private Placement"), including the amount of the first closing.
The net proceeds of the Private Placement will enable the Corporation to complete its power generation project using residual biomass in St.Patrice, Quebec and will also be used for the development of new projects. Moreover, Innoventé is preparing a proposal for its second combined heat and power plant project as part of the new Power Purchase Program for electricity derived from residual biomass announced by Hydro-Québec on December 20, 2011. This program plans for the purchase of 150 MW of electricity at a price of 10.6 ¢ / kWh for up to 25 years.
Innovente closed today the second tranche of the Private Placement by issuing 1,000,000 common shares (the "Common Shares") to an institutional investor, at a price of $0.55 per Common Share, for total gross proceeds of $550,000. Under the terms of the Private Placement, Innovente has issued an aggregate of 9,230,273 Common Shares for total gross proceeds of $5,076,650. The securities issued pursuant to the second tranche of the Private Placement will be subject to a 4-month and one day restricted period expiring on May 11, 2012.
National Bank Financial inc. acted as agent in the context of the Private Placement. For its services with respect to the closing of the second tranche of the Private Placement, Innovente (i) paid a cash commission of $38,500, and (ii) issued 70,000 warrants (the "Broker Warrants") to National Bank Financial inc. Each Broker Warrant entitles the holder to acquire one Common Share of Innovente at $0.85 for a period of 36 months following the closing of the second tranche of the Private Placement.
Innovente has received an advance income tax ruling from the Ministère du Revenu du Québec confirming that Innovente meets the criteria of a "qualified issuing corporation" in accordance with the Quebec Stock Savings Plan II and that the common shares of Innovente issued in the context of the second closing, if subscribed by a qualified mutual fund, are "qualifying shares" as per such plan.
Innovente (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. Innovente's intelligent electricity is produced locally from waste and residues in the region where it operates.
At the heart of Innovente'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 Innovente to extract water from waste and transform it into biofuel. In addition to intelligent electricity, Innovente produces useful heat and fertilizers and helps reduce greenhouse gas emissions.
Innovente 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, Innovente launches its growth strategy and plans to replicate this project in Canada, the U.S. and worldwide.
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 Innovente Inc. to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.
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.
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