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.
