TPC warrantsthese TPC warrants are only in-the-money if iFire is valued at $1.26 billion !
Technology Partnerships Canada (“TPC”), a technology investment fund established by the
Government of Canada under which TPC contributed $30 million over two years towards
eligible research and development costs and related capital expenditures incurred by iFire.
In consideration for this funding, TPC will receive a royalty of 1.065% on future sales of
iFire products and has received warrants to purchase common shares of iFire for future
consideration of $6.3 million. The warrants expire on December 31, 2007 and represent
approximately 0.5% of the outstanding common shares of iFire.