NOT FOR DISTRIBUTION TO THE U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES.


H2O Innovation Inc. (TSX VENTURE:HEO)(ALTERNEXT:MNEMO:ALHEO) ("H2O Innovation"
or the "Company") announces the completion of the equity financing previously
announced by press release on May 28, 2009 in connection with the proposed
acquisition of substantially all of the assets of Professional Water
Technologies, Inc.  (the "Acquisition"). 


As part of this equity offering, H2O Innovation has issued a total of 5,045,454
subscription receipts (the "Subscription Receipts"), for aggregate gross
proceeds of CAD$2,774,999.70 at a price of CAD$0.55 per Subscription Receipt
(the "Private Placement"). Each Subscription Receipt will entitle the holder
thereof to receive, for no additional consideration and upon closing of the
Acquisition, one unit of the Company (the "Units"). 


Each Unit consists of one common share in the share capital of the Company (the
"Common Shares") and one Common Share purchase warrant (the "Warrants"). Each
Warrant entitles the holder thereof to acquire, at any time before 5:00 pm
(Montreal time) on December 5, 2011, one Common Share at a price of CAD$0.85 per
Common Share. In the event that the Acquisition does not, for any reason, occur
on or before August 31, 2009, an amount equal to the issue price of the
Subscription Receipts will be returned to each holder of Subscription Receipts
plus such holder's pro rata entitlement to the interest earned or income
generated on such amount while held in escrow as per the terms of a subscription
receipts agreement entered into as of today between the Company, Loewen,
Ondaatje, McCutcheon Limited (the "Agent") and Computershare Trust Company of
Canada.


The Agent, in compensation for acting as agent for this Private Placement, was
granted by the Company a total of 129,877 warrants (the "Agent's Warrants") and
was paid an amount of CAD$35,716.25, representing  50% of the commission payable
to the Agent in relation with the Private Placement.  The remaining portion of
the commission will be paid upon closing of the Acquisition. Each Agent's
Warrants will entitle the holder thereof to acquire one Unit for a price of
CAD$0.55 per Unit at any time before 5:00 pm (Montreal time) on December 5,
2011.


The Subscription Receipts, the Warrants, the Agent's Warrants and the Common
Shares underlying the Subscription Receipts, the Warrants and the Agent's
Warrants are subject to a statutory four-month hold period.


The net proceeds of this financing is to be used for the partial payment of the
purchase price for the Acquisition and all ancillary transaction costs.


Prospective disclosures

This press release may contain prospective disclosures representing current
expectations of H2O Innovation and are subject to certain risks and
uncertainties. For details of these risks and uncertainties please refer to the
Company's Annual Information Form dated September 26, 2008 available on SEDAR
(www.sedar.com). H2O Innovation is under no obligation to revise or update the
prospective disclosures contained in this press release.


About H2O Innovation 

Exclusively dedicated to water treatment, H2O Innovation is establishing itself
as a key player in sustainable development and the field of clean technologies.
H2O Innovation designs, develops, produces, and integrates state-of-the-art
water treatment systems for the production of drinking water, the reclamation of
water, the treatment of wastewater and industrial processed water in the
municipal, commercial, pharmaceutical, industrial, mining, and energy markets.
H2O Innovation has approximately 100 employees and eight offices including two
manufacturing and assembly plants in Canada and the United States. Shares of H2O
Innovation are listed on the TSX Venture Exchange (HEO) as well as on the NYSE
Euronext Alternext Exchange (MNEMO:ALHEO). 


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.
H2O Innovation (TSXV:HEO)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more H2O Innovation Charts.
H2O Innovation (TSXV:HEO)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more H2O Innovation Charts.