QUEBEC CITY, Nov. 30, 2012 /CNW Telbec/ - Innovente Inc. (TSXV: IGE) ("Innoventé" or the "Company") announces a delay in the commercial operation of its first plant located in St-Patrice-de-Beaurivage. Commercial operation of the plant will start by April 30th at the latest instead of December.
"We are sparing no efforts to make sure that the plant will be operational as soon as possible, but at the same time we are committed to high standards and strict environmental regulation", explains Richard Painchaud, president of Innoventé.
Jacques Gauthier, a director of the Company with an extensive experience in the energy sector, has agreed to provide support to the project team to optimize the process leading to commercial operation of the plant. The Company has informed its client, Hydro-Quebec, of this delay. The terms of the contract will apply and represent a penalty of approximately $115,000.
To address the financial impacts caused by this delay and working capital needs related to the development of new projects, Innoventé has entered into a letter of engagement with National Bank Financial Inc. (the "Agent") with respect to a "best efforts", agency basis, private placement consisting of Common Shares of Innoventé for aggregate gross proceeds of $1 million to $2.5 million (the "Offering"). As per the engagement letter, the Agent will act as agent in the context of the Offering. The issue price of the Common Shares has not yet been determined and will be mutually agreed upon by the Company and the Agent. The Common Shares will be offered in each of the provinces in Canada. The Common Shares issued pursuant to the Offering will be subject to the statutory hold periods and the Offering remains subject to applicable regulatory approvals.
The Company will submit a request for an advance income tax ruling from the Ministère du Revenu du Québec confirming that Innoventé meets the criteria of a "qualified issuing corporation" in accordance with the Quebec Stock Savings Plan II and that the common shares of Innoventé that will be issued in the context of the Offering will be "qualifying shares" as per such plan.
Innoventé's Chief Financial Officer, Isabelle Jomphe, has informed the Company of her departure. Her last day with the Company will be January 31st, 2013. The necessary measures have been put in place to find her replacement.
Based in Quebec City, Innoventé produces renewable energy and provides communities with a green and sustainable solution for the management of residual organic matter. Innoventé stock is listed on the TSX Venture Exchange under the ticker symbol IGE (TSXV: IGE). www.innovente.ca
Disclaimer regarding forward-looking statements
Certain statements included herein, including those that express management's expectations or estimates of the Company's future performance, constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management when they are made, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Investors are cautioned not to place undue reliance on forward-looking statements. The Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or other development.
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 press release.
SOURCE Innoventé Inc.