H2O Innovation Announces a CAD$2.5 M Debt Financing
June 30 2009 - 12:00PM
Marketwired
H2O Innovation Inc. ("H2O Innovation" or the "Company") (TSX
VENTURE: HEO)(ALTERNEXT: MNEMO:ALHEO) announces the closing of its
previously announced debt financing by way of unsecured term loan
for an aggregate amount of approximately CAD$2.522 million with a
Canadian financial institution and certain individuals, including,
among others, Mr. Richard A. Hoel and Mr. James Peterson (the
"Lenders"). The principal amount bears interest at the annual rate
of 11%, starting from the disbursement date and is repayable in
equal monthly instalments form July 1st, 2010 to June 1st, 2014.
As additional consideration to the Lenders, H2O Innovation has
issued a total of 1,250,000 common share purchase warrants (the
"Warrants"). Each Warrant entitles the holder thereof to purchase
one common share of the Company at a price of (i) CAD$0.80 for the
first year, (ii) CAD$0.90 for the second year, (iii) CAD$1.00 for
the third year, and (iv) CAD$1.10 for the fourth year. The Warrants
will expire on June 30, 2013 and are subject to a statutory
four-month hold period. A finder's fee of CAD$113,425 was paid to
Desjardins Securities Inc. in relation to this financing.
Mr. Richard A. Hoel, Director of H2O Innovation and holder of
more than 10% of the share capital of the Company, and Mr. James
Peterson, Chief Operating Officer of H2O Innovation, have
participated in this financing by providing the Company with loans
in the amount of US$201,502 and US$80,610 for which they have
respectively received a number of 111,945 and 44,783 Warrants.
The net proceeds of this financing will be used for the payment
of a portion of the purchase price for the recent acquisition of
Professional Water Technologies, Inc., and all ancillary
transaction costs. The net proceeds will also be used by the
Company's to pursue its growth following the acquisition, over and
above the Company's working capital requirements-which are now met
with cash generated from operating activities-and to maximize its
future growth opportunities.
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.
Contacts: H2O Innovation Inc. Guillaume Ducharme 418-928-0234
guillaume.ducharme@h2oinnovation.com www.h2oinnovation.com
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