Innoventé Inc., a Québec City-based developer of technology which converts organic wastes and residues into electricity, has entered into a loan agreement with government financial institution Investissement Québec. The amount of the loan is up to C$2 million, which the company will use to acquire equipment for construction of its Saint-Patrice-de-Beaurivage project and to fund its working capital. Founded in 2004, Innoventé is currently backed by the Caisse de dépôt et placement du Québec.
Innovente Inc. (TSXV:IGE.V – News) (“Innovente” or the “Corporation”) is pleased to announce that, further to its previous announcement that it was in discussions with an institutional lender, it has entered into a loan agreement with Investissement Québec (“IQ”) for a loan of an amount of up to $2,000,000.
The loan will bear interest at the prime rate used by major banks (currently 3%) plus 7.5% and its principal will be repayable, starting 36 months after the first disbursement, in monthly instalments over a period of seven years. In addition, starting on October 31, 2017, the Corporation will pay IQ annually an amount equal to 4% of its annual net sales to repay the loan, subject to the right of the Corporation to limit such annual amount to $125,000. The loan will be secured and the loan agreement contains additional representations and covenants customary for a loan of this nature.
As a consideration for the loan, the Corporation has agreed, subject to regulatory approval, to issue to IQ common share purchase warrants to acquire up to 470,588 common shares of the Corporation at a price equal to the higher of (i) $0.85; or (ii) the minimum exercise price permitted under the policies of the TSX Venture Exchange. The common share purchase warrants will be issued upon each disbursement of the loan, in proportion to the amount then disbursed.
The proceeds from the loan will be used by Innovente to acquire equipement in connection with the construction of the Saint-Patrice-de-Beaurivage project and to fund its working capital.
Based in Quebec City, Innovente produces renewable energy and provides communities with a green and sustainable solution for the management of residual organic matter. Innovente stock is listed on the TSX Venture Exchange under the ticker symbol IGE (TSXV:IGE.V – News). www.innovente.ca
Disclaimer regarding forward-looking statements
Certain statements included herein may 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 Corporation disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or other development.
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SOURCE: Innoventé Inc.
Director of Communications, Innovente
Tel: 418 692-1011 ext. 200
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