H2O Completes a Financing of CA$ 1.5M
July 10 2008 - 5:30PM
Marketwired
QUEBEC CITY, QUEBEC (TSX VENTURE: HEO)(Alternext : MNEMO :
ALHEO) is pleased to announce that it has successfully completed
today a private placement of CA$ 1,500,000 by means of a
convertible debenture to SIPAR Inc. Given that its sales backlog is
totalling more than CA$ 21M following the acquisition of Itasca
Systems, Inc. completed on July 3, 2008 and capital requirements in
the next few months for the completion of contracts, management of
H2O has deemed it opportune to complete this financing, proceeds of
which will be allocated to working capital.
H2O issued to SIPAR Inc. a convertible and unsecured debenture.
The principal amount of the debenture will bear interest at the
annual rate of 10%, starting from the disbursement date and the
principal amount will be convertible, at the election of the
holder, into common shares of H2O. The conversion price of the
debenture will be CA$ 0.95 per share during the first two years and
CA$ 1.045 per share for the third year following the issuance.
Moreover, commencing the 24th month following the issuance of the
debenture, if the weighted average trading price of H2O's common
shares traded on the Exchange is superior to CA$ 1.25 for more than
20 days, H2O will be entitled to require the conversion of the
principal amount of the debenture at the then applicable conversion
price. Interest on the principal amount of the debenture will be
payable by way of semi-annual instalments in July and in January of
each year and the principal amount will be payable 36 months after
the date of issuance of the debenture.
The securities issued pursuant to this private placement are
subject to statutory resale restrictions for a period of four (4)
months following the closing of the financing.
The private placement was made pursuant to exemptions from
prospectus and registration requirements of applicable securities
laws. The net proceeds from the financing will be allocated to
working capital and other general corporate purposes of H2O.
About H2O
H2O's mission is to develop, manufacture and market innovative,
environment-friendly, products intended for drinking water
production, wastewater treatment and industrial processes.
Forward-Looking Statements
This press release contains forward-looking statements which
reflect H2O's current expectations regarding future events. The
forward-looking statements involve risks and uncertainties. Actual
results could differ materially form those projected herein. H2O
rejects any obligation to revise or update the forward-looking
statements contained in this press release.
The TSX Venture Exchange and the Alternext Exchange assume no
responsibility for the relevance or accuracy of this press
release.
Contacts: H2O Innovation Guy Goulet Chairman of the Board and
CEO 450-227-1150 ggoulet@h2oinnovation.com H2O Innovation Frederic
Dugre President and COO 418-688-0170 fdugre@h2oinnovation.com
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