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 30 th 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.