TSX-V: HEO
Alternext: MNEMO: ALHEO
All amounts in Canadian dollars unless otherwise
stated.
QUEBEC CITY,
Sept. 30, 2013 /CNW Telbec/ -
H2O Innovation Inc. ("H2O Innovation" or
the "Company") announces that it has completed a non-brokered
private placement of approximately $1.978
million with a group of private investors and shares for
debts for an amount of approximately $157,000 (the "Offering").
The Company will use the proceeds of the
Offering to reimburse partially its long-term debt and to support
its working capital. "We believe that the Company has now
reached more stability in its business model and its overall
operations; thus, we want to solidify our balance sheet in reducing
our long-term debt by approximately $1.15
million, which will also significantly reduce our interest
expenses over the current fiscal year and improve our
profitability. The remaining portion of the Offering will be
used to our support working capital and business growth.
Through this financing, we are also increasing the institutional
ownership of La Caisse de dépôt et de placement du Québec in the
Company and welcoming COTE 100 Inc. as a new shareholder, two
strategic financial partners necessary to our business growth",
stated Frédéric Dugré, President and Chief Executive Officer of
H2O Innovation Inc.
As part of the Offering, the Company issued
9,704,546 Common shares (the "Common Shares") at a price of
$0.22 per Common Share for aggregate
gross proceeds of approximately $2.135
million. Among the Common Shares issued in connection with
the Offering, 714,712 Common Shares are issued to certain creditors
of the Company, Richard A. Hoel and
Laurence E. Gamst, to reduce the
long-term debt of the Corporation by approximately $157,000.
Certain insiders of the Company, being
Richard A. Hoel, a director and
holder of more than 10% of the Common Shares of the Company,
Laurence E. Gamst, director of the
Company and Frédéric Dugré, director and President and Chief
Executive Officer of the Company, participated in the Offering and
subscribed for an aggregate of 1,204,546 Common Shares representing
an aggregate amount of approximately $265,000. Participation of insiders of the
Company in the Offering constitutes a "related party transaction"
as defined under Regulation 61-101 respecting Protection of
Minority Security Holders in Special Transactions ("Regulation
61-101"). The Offering is exempt from the formal valuation and
minority shareholder approval requirements of
Regulation 61-101 as neither the fair market value of
securities being issued to insiders nor the consideration being
paid by insiders will exceed 25% of the Company's market
capitalization. The Company did not file a material change report
21 days prior to the closing of the Offering as the details of
the participation of insiders of the Company had not been confirmed
at that time.
The Common Shares issued as part of the Offering
are subject to a statutory resale restriction until January 31, 2014.
Prospective disclosures
Certain statements set forth in this press release regarding the
operations and the activities of H2O Innovation as
well as other communications by the Company to the public that
describe more generally management objectives, projections,
estimates, expectations or forecasts may constitute forward-looking
statements within the meaning of securities legislation.
Forward-looking statements concern analysis and other information
based on forecast future results, performance and achievements and
the estimate of amounts that cannot yet be determined.
Forward-looking statements include the use of words such as
"anticipate", "if", "believe", "continue", "could", "estimate",
"expect", "intend", "may", "plan", "potential", "predict",
"project", "should" or "will", and other similar expressions, as
well as those usually used in the future and the conditional,
notably regarding certain assumptions as to the success of a
venture. Those forward-looking statements, based on the current
expectations of management, involve a number of risks and
uncertainties, known and unknown, which may result in actual and
future results, performance and achievements of the Company to be
materially different than those indicated. Information about the
risk factors to which the Company is exposed is provided in the
Annual Information Form dated September 24,
2013 available on SEDAR (www.sedar.com). Unless required to
do so pursuant to applicable securities legislation,
H2O Innovation assumes no obligation to update or
revise forward-looking statements contained in this press release
or in other communications as a result of new information, future
events and other changes.
About
H2O Innovation
H2O Innovation designs and provides state-of-the-art,
custom-built, and integrated water treatment solutions based on
membrane filtration technology to municipal, energy & natural
resources end-users. H2O Innovation also provides a
complete line of specialty chemicals and consumables for membrane
filtration and reverse osmosis systems. For more, visit
www.h2oinnovation.com.
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.
SOURCE H2O Innovation Inc.