IPICO Inc.
TSX VENTURE : RFD

IPICO Inc.

October 05, 2007 11:33 ET

IPICO Inc. Announces Closing of $8 Million Private Placement Financing

BURLINGTON, ONTARIO--(Marketwire - Oct. 5, 2007) -

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IPICO Inc. (TSX VENTURE:RFD) ("IPICO" or the "Company") is pleased to announce today the closing of a private placement of 6,956,700 units (the "Units"), at a price of $1.15 per Unit for gross proceeds of $8,000,205, including additional proceeds of $3,000,005 for the 2,608,700 Units purchased pursuant to the exercise in full of the Underwriters' option. Each Unit consists of one common share of the Company and one half of one common share purchase warrant (each full warrant, a "Warrant"). Each Warrant entitles the holder to purchase one common share of the Company for a period of 12 months from closing at a price of $1.30 per share. All common shares issued at closing or upon the exercise of the Warrants or the Broker Warrants referred to below are subject to a four month statutory hold period from the closing date.

IPICO plans to use the net proceeds of the financing for working capital and general corporate purposes. The syndicate of underwriters, led by Wellington West Capital Markets Inc. and including Desjardins Securities Inc., received a cash commission of 6.0% of the gross proceeds and Broker Warrants to purchase 347,835 common shares of the Company at an exercise price of $1.15 per common share. The broker warrants expire 12 months after the closing date.

ABOUT IPICO Inc.

IPICO Inc. is an RFID solution supplier with operations in Canada, USA, South Africa, Europe, Asia and Australia. IPICO produces smart labels and tags based on the IP-X™ communication protocol. IPICO's low interference readers are designed to meet regulatory requirements in many major markets, and allow for multi-reader rollout in close proximity. IPICO's low cost RFID products excel at long read range, fast multi-read anti-collision and high thru-beam read-speeds of dynamic tag populations. These products are used to optimize the management of items, people, animals and processes within the logistic supply chain and other value chains. For further information, go to www.ipico.com.

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