Update regarding H2O Innovation proposed equity financing of approximately CAN$10M and restructuring of debt30 May 2006
H2O Innovation (2000) inc. ("H2O", TSX- V: HEO) is pleased to announce that its previously announced proposed CAN$10M equity financing through AMSTERDAMS EFFECTENKANTOOR B.V. ("AEK") is expected to be increased to $10,107,500 and involve two other subscribers. The proposed private placement will consist of units. Each unit will be converted into one common share at a price of CAN$0.90 and one warrant, the latter granting AEK and the other two subscribers the right, for the next 24 months, to subscribe to a common share of H2O at a price of CAN$1.25.
Also, as part of the previously announced restructuring of debt, H2O announces that one of its creditor will also convert a debt in the amount of $100,000 into units having the same terms and conditions as those to be issued pursuant to the private placement. The proceeds of the private placement will be applied to the completion of the previously announced proposed acquisition of Membrane Systems Corporation ("MSC"), debts' settlements and working capital. The closing of the private placement and debt's settlements is expected to occur on or about May 31, 2006, subject to regulatory approvals, and is not conditional upon the acquisition of MSC. In the event that the acquisition of MSC is not completed, the proceeds of the private placement will be applied to the debts' settlements and working capital.
Forward-Looking Statements
Except for historical information provided herein, the press release may contain information and statements of a forward-looking nature concerning the affairs and business of H2O. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events, and as such involve a number of risk factors. Such factors may include, without excluding other considerations, risks related to the negotiations surrounding the debts' settlements and acquisition of MSC and requirements of regulatory authorities in connection therewith. As a result, readers are advised that actual results may differ from expected results. H2O is not required to update or revise publicly its forward-looking statements.
About H2O
H2O is pursuing its market development in drinking water with a complete portfolio of membrane technologies for municipal, industrial and commercial sectors. H2O's mission is to develop, produce and market state of the art, environmentally friendly products dedicated to the production of drinking water and the treatment of wastewater and industrial processed water.
The TSX Venture Exchange assumes no responsibility to the pertinence or
accuracy of the information contained in this press release.
For further information: Guy Goulet, President and CEO, (450) 669-3144 ex. 203, ggoulet@h2oinnovation.com; Frédéric Dugré, Executive Vice-President, (418) 688-0170 ex.22, fdugre@h2oinnovation.com
Source: newswire
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