Conporec Inc.

Conporec Inc.

August 10, 2006 09:28 ET

Conporec announces a private placement of $1.5 million and another of up to $28.5 million in connection with potential acquisitions - The Company enters into a significant growth plan...

QUEBEC CITY, Aug. 10 - Laurier Pedneault, Chairman of the
board of Conporec Inc. ("Conporec" or the "Company") (TSX VENTURE:CNP), is pleased
to announce that Conporec intends to complete two private placements of up to
CAN$30 million or EUR 22 million. Amsterdams Effectenkantoor B.V ("AEK"), a
financial institution based in Amsterdam, Netherlands, was retained by
Conporec to complete the private placements.

Pursuant to the terms of the first private placement (the "First Private
Placement"), an amount of CAN$1.5M will be disbursed for the subscription to
6,000,000 units at the price of CAN$0.25 per unit. Each unit shall include one
common share and one warrant granted to AEK. The exercise price of each
warrant shall be CAN$0.25 with a two-year term following the closing of the
placement. Conporec will use the proceeds to fund its working capital.

A second private placement (the "Second Placement") of up to CAN$28.5M or
EUR 21 million will be subscribed in one or more closing(s) that may take
place before the final closing date of potential important acquisitions.
Conporec will use the proceeds of the Second Placement to finance potential
important acquisitions and to develop its business. Additional details
regarding the acquisitions will be announced in a future press release.

The exercise price of the units of the Second Placement shall be
determined according to the applicable TSX Venture Exchange Inc. (the
"Exchange") policies. Each unit of the Second Placement will include one
common share and one warrant granted to AEK. The warrants will have a two-year
term following the closing of said private placement. Furthermore, AEK shall
have the right to increase the size of the Second Placement by an additional
CAN$5M at its entire discretion.

The common shares underlying the units and the warrants will be subject
to a hold period in accordance with the policies of Exchange and the
Securities legislation in force in Canada.

The private placements are conditional, among others, on the approval of
the Board of Directors of Conporec, the regulatory authorities and such
conditions that may be raised by the Board of directors.

Because Conporec is actively discussing with potential acquisition
targets, the management has decided to halt trading in the securities of
Conporec until a press release announcing or not said fundamental acquisitions
or acquisitions which could constitute reverse take-overs is published.

"This major investment is in line with the potential of our market and
the opportunity to create a consolidation play using Conporec as the main
vehicle. The financial community now recognizes the value of GREEN investment
that is based on proven technologies in a major world market trend" according
to Chairman Pedneault. "We are currently evaluating many acquisition targets
that should enlarge our product offering and waste management capacities both
in our domestic and international markets" concludes Mr. Pedneault.


Conporec treats and recycles municipal solid waste through a patented
composting and sorting technology. This process reduces the need for landfill
disposal by treating 100% of the organic content contained in solid waste,
thus reusing and recycling up to 75% of the original waste mass. In addition,
the technology helps to reduce greenhouse gases that are typically released
through the decomposition of garbage in landfills. The Company has
successfully operated a plant in Sorel-Tracy, Quebec for 13 years and recently
began start up of a second facility in New York State (United States). A third
facility is currently under construction in France near Paris. Through Biomax
Inc., a Conporec subsidiary, the Company has also delivered thirty different
composting facilities that have the capacity to produce more than 300,000 tons
of compost annually. Conporec is a socially responsible organization listed on
the Exchange.

Forward-looking statements contained in this press release involve known
and unknown risks, uncertainties or other factors that may cause actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements.

Contact Information

  • Benoit Côte, Special advisor, (418) 564-7999,
    Fax : (418) 527-7516; Laurier Pedneault, Chairman of the Board, (418)
    527-9996, Fax : (418) 527-7516; Sources: Conporec Inc.;