H2O Complete a Bank Financing CA$3.5 M and Streamlines Fixed Operating Costs
September 15 2008 - 4:05PM
Marketwired
H2O Innovation (2000) Inc. ("H2O,")(TSX VENTURE:
HEO)(ALTERNEXT:MNEMO:ALHEO) announces that it has executed a
CA$3,500,000 loan with a Canadian chartered bank. Also, following
the recent acquisition of Itasca Systems Inc., the management has
reviewed all of its operating processes and, in implementing the
resulting synergies, plans to reduce its annual fixed charges for
sales and administrative expenses by some CA$750,000, on a
consolidated basis.
Due to the growth of its backlog (CA$21 M as at August 26,
2008), the H2O management deemed it appropriate to complete this
financing in order to provide required cash-flow for the execution
of the contracts over the next few months. The CA$3.5 M will be
allocated to H2O's working capital fund. It is the first H2O's
long-term bank financing, which objective is to create reasonable
leverage to its working capital.
At the same time, adjustments made during the first quarter of
this fiscal year as part of efforts to integrate various companies
acquired over the past few months, has the objective to increase
internally working capital generated from operating activities
without impacting the company's organic growth strategy. "This
budget in which all members of the management team have
participated, will allow us to optimize use of our human and
material resources. More directly, we believe that increasing
cash-flow generated from our operations will provide us leverage to
future acquisitions", explained president and CEO Frederic
Dugre.
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 from 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 (2000) Inc. Frederic Dugre President
and CEO 418-688-0170 fdugre@h2oinnovation.com H2O Innovation (2000)
Inc. Annie Lemieux, CA Chief Financial Officer 418-688-0170
alemeieux@h2oinnovation.com H2O Innovation (2000) Inc. Stephen
Gauthier, CFA Senior Vice President, Corporate Finance &
Investor Relations 514-515-9930 sgauthier@h2oinnovation.com
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