BOUCHERVILLE, QC, March 22, 2013 /CNW Telbec/ - Because of the prevailing market conditions, Noveko International Inc. (TSX: EKO) (the "Corporation") announces that it ended its private placement of units at the price of $0.12 per unit. However, the Corporation's Board of Directors approved a new private placement for a minimum number of 5,333,333 Class A Shares ($320,000) and a maximum number of 8,333,333 Class A Shares ($500,000), at a price of $0.06 per share. It is expected and was agreed with Third Eye Capital Corporation that the Corporation's senior executives will subscribe for at least 5,333,333 Class A Shares ($320,000) in connection with this private placement. This private placement was approved by the Toronto Stock Exchange. The funds injected from this private placement will fulfill our needs for working capital until the closing of our $10 to $12 million financing in the next two to three weeks.
With respect to the transfer of the Corporation's 70% shareholding in SARL Noveko Algérie that was supposed to initially occur on July 31, 2012 and that was conditional to the repayment of a total amount of $1,400,000 due by Noveko Algérie to the Corporation, the Corporation agreed to reduce that amount to $900,000. Up to now the Corporation has received a total amount of $700,000; the remaining amount of $200,000 is payable no later than March 31, 2013.
Finally, we are pleased that the Toronto Stock Exchange decided to postpone its decision concerning the review of our Class A Shares listing for an additional 30 days. The Corporation asserted to the Exchange that it was crucial that the Corporation had the opportunity to close its $10 to $12 million financing before a decision is taken by the Exchange. However, no assurance can be provided that such a closing would be sufficient to convince the Exchange to maintain our Class A Shares listing.
Profile of the Corporation
The Corporation specializes in the air filtration segment by providing its clientele with innovative and eco-energetic filtration solutions. As such, through its subsidiaries, the Corporation notably designs, develops, manufactures and markets air filters incorporating its patented air filtration technologies, which filters are cleanable and recyclable, and have a much longer life span than conventional air filters. These filters are used in farm buildings, in institutional, commercial, industrial and residential buildings, and in the ground and aeronautics transport industry.
Through distributors, the Corporation furthermore continues to commercialize antimicrobial masks and respirators, hands sanitizers and 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 Corporation does not intend and undertakes no obligation to update or revise the forward-looking statements.
SOURCE: NOVEKO INTERNATIONAL INC.
For further information:
Senior Vice-President and Chief Financial Officer
Tel: (514) 875-0606