QUEBEC CITY, Aug. 24, 2012 /CNW Telbec/ - Innovente inc. (TSX VENTURE:IGE) ("Innoventé" or the "Corporation") provides an update on its project located in St-Patrice-de-Beaurivage ("St. Patrice"), Quebec, and announces its annual results for the fiscal year ended April 30, 2012.
St. Patrice Project Update
- Cogeneration Plant
The cogeneration plant acquired in Newfoundland in 2011 was dismantled, transported to St. Patrice, and approximately 85% of the reconstruction has been completed so far. Innoventé plans to finalize the construction work in the coming weeks and intends to commission the cogeneration plant in October. This schedule would result in a commissioning of the plant two months earlier than the planned date in the contract signed with Hydro-Quebec.
- Project Financing
Last November, Innoventé announced the closing of a $13.6 million financing in debt and equity, allowing Innoventé to complete its project in St. Patrice, among other things. The Corporation has cashed in over $10.7 million of this financing at this point and does not foresee the need for any additional financing to complete the St. Patrice project.
Commenting on the project's advancement, Richard Painchaud, President and Chief Executive Officer of Innoventé, said: " We are very happy that the St. Patrice project is nearing completion and that it is in line with the previously announced schedule and budget."
Annual Results
Financial Highlights
During the year, Innoventé secured the necessary financing necessary for its CHP plant construction project at St. Patrice. As at August 24, 2012, the majority of disbursements under this multi-stage financing had been collected. The following table summarizes the disbursements received to date:
| Authorized /issued amounts |
Received as at August 24, 2012 |
Date(s) of receipt | Origin | |||
| $5,076,650 | $5,076,650 | November 25, 2011 and January 10, 2012 |
Private Placement | |||
| $2,500,000 | $2,500,000 | March 7, and July 3, 2012 |
Investissement Québec | |||
| $3,000,000 | $1,586,312 | July 30, 2012 | National Bank of Canada |
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| $3,000,000 | $1,586,312 | July 30, 2012 | Caisse Desjardins de La Nouvelle-Beauce |
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| $13,576,650 | $10,749,274 |
"Investissement Québec, National Bank of Canada and Caisse Desjardins de la Nouvelle-Beauce are essential partners in Innoventé's development and we are satisfied that that the previously announced financing is processing as planned."
Following are the detailed characteristics of the items comprising this financing:
- On November 25, 2011 and January 10, 2012, the Corporation completed a private placement consisting of two tranches of 8,230,273 and 1,000,000 common shares, respectively, issued at $0.55 per share for total gross proceeds of $5,076,650. Issue costs of $476,849 were paid in cash. In addition, the Corporation issued 646,119 warrants to the agent valued at $82,250. Each warrant entitles the holder to acquire one common share at $0.85 at any time within thirty-six months following the closing of the private placement.
- The Corporation received $2,500,000 $ from Investissement Québec, in two tranches of $1,250,000 on March 7 and July 3, 2012. The Corporation issued 588,236 warrants to Investissement Québec as consideration under its $2,500,000 loan financing. Each warrant entitles the holder to acquire one common share at $0.85 per share at any time during the thirty-six months following the disbursement date. Accordingly, 294,118 warrants are exercisable during a period of thirty-six months following March 7, 2012 and 294,118 additional warrants are exercisable during a period of thirty-six months following July 3, 2012. The loan, secured by a hypothec on the universality of the Corporation's assets, bears interest at the lender's prime rate plus 7.5% (10.5% as at April 30, 2012). It is repayable over seven years in eighty-three monthly instalments of $30,000 and a final $10,000 instalment, subsequent to a thirty-six month standstill on the principal portion of the loan from the date of the first disbursement received. In addition, the Corporation will be required to make annual principal prepayments, as of October 31, 2015, amounting to 4% of the Corporation's net sales for the fiscal year preceding the instalment date. The Corporation can, at its discretion, limit this annual repayment to $125,000.
- On July 30, 2012, the Corporation received an initial tranche of $3,172,624 under financing consisting of a $6,000,000 pari passu loan from National Bank of Canada and Caisse Desjardins de La Nouvelle- Beauce. The balance of the loan will be received based on the percentage of completion of construction of the plant. The loan, secured by a hypothec on the universality of the Corporation's assets, bears interest at the lender's prime rate plus 2.5%. It is repayable over ten years in monthly principal instalments of $50,000 as of January 31, 2014.
| Financial results | |||||
| Data from the statement of loss and comprehensive loss | |||||
| For the years ended April 30, (in CA$) | |||||
| Twelve-month periods ended | |||||
| April 30, 2012 | April 30, 2011 | ||||
| Operating revenues | - | - | |||
| Net loss and comprehensive loss | (1,461,908) | (374.781) | |||
| Basic and diluted loss per share | (0.044) | (0.015) | |||
| Statement of financial position data | |||||
| April 30, 2012 | April 30, 2011 | ||||
| Cash and cash equivalents | 1,697,307 | 2,647,405 | |||
| Total assets | 12,443,662 | 7,535,127 | |||
Quarterly information under IFRS (unaudited)
The Corporation restated quarterly information for the year ended April 30, 2012, including comparative data, to change the classification paid to agents retained for IPO purposes and to adjust deferred tax and taxes payable calculated quarterly. Detailed information on the restatements is presented in note 25 of the annual financial statements.
Additional Information in Regards to the fiscal years ended April 30, 2012 and 2011
The financial information in regards to the fiscal years ended April 30, 2012 and 2011 should be read in conjunction with the Corporation's annual financial statements and the Management's Discussion and Analysis of financial condition for the fiscal years ended April 30, 2012 and 2011 dated August 21, 2012. These documents are available at www.sedar.com
Options granted
In addition, Innoventé announced that the Board of Directors authorized a grant of 50,000 stock options to a senior executive. Pursuant to the terms of the Corporation's stock option plan, each option grants the holder of such option the right to purchase a common share of the Corporation at a price of $0.85 per share no later than June 11, 2022.
About Innoventé
Innoventé is an innovative producer of renewable energy. The Company has developed a ground-breaking concept that provides communities with a green and sustainable organic waste management solution. Known as "intelligent electricity," this solution converts organic waste into electricity, heat, and fertilizing products, thereby reducing greenhouse gas emissions. Innoventé's intelligent electricity is a solution designed to improve environmental quality and stimulate economic development - and it can easily be applied in all communities. Innoventé has nearly completed construction of its first intelligent electricity power station, which will serve 6,000 residents in Quebec's Chaudière-Appalaches region. This pioneering power station leads the way for future application of our concept around the world.
Disclaimer in regards to forward-looking statements
Certain statements included herein, including those that express management's expectations or estimates of our future performance, constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. The Corporation disclaims any intent or obligation to update publicly these forward looking statements, whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as these terms are defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Innoventé Inc.
Mrs. Isabelle Jomphe
Vice-president Finance
Innovente inc.
418 692-1011 ext 206
[email protected]
Investor Relations
Marc Jasmin CMA, President
Jasmin Financial Communications
514 231-2360
[email protected]
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