Innovotech Inc.
TSX VENTURE : IOT

Innovotech Inc.

January 03, 2008 12:21 ET

Innovotech Inc. Announces Completion of Private Placement

EDMONTON, ALBERTA--(Marketwire - Jan. 3, 2008) - Innovotech Inc. ("Innovotech")(TSX VENTURE:IOT) is pleased to announce that it has received TSX Venture Exchange ("Exchange") final acceptance for a private placement (the "Private Placement") of 3,000,000 units ("Units") at a price of $0.60 per Unit for gross proceeds of approximately $1,800,000 as previously announced on December 6, 2007. Each Unit is comprised of one (1) common share ("Common Share") and one-half ( 1/2) Common Share purchase warrant. Each whole warrant entitles the holder to purchase one (1) additional Common Share at a price of $0.75 per Common Share for a period of one (1) year following the date of closing, provided that if the weighted average per share quoted by the Exchange for any consecutive fifteen (15) day period prior to the exercise date of the warrants is equal to or greater than $0.90 per Common Share, then Innovotech may accelerate the expiry date by notifying the warrantholders who shall then have fifteen (15) business days to exercise their warrants failing which the warrant will expire.

The proceeds from the Private Placement will be used for development of its product lines and for general working capital purposes. No bonus, finder's fee, commission or agents options were paid in connection with the Private Placement.

Pursuant to the policies of the Exchange and Ontario Securities Commission Rule 61-501 ("OSC Rule 61-501") the Private Placement may be classified as a "related party transaction" as certain Directors of Innovotech (the "Related Parties") subscribed for Units.

Innovotech has determined that exemptions from the formal valuation and minority shareholder approval requirements under OSC Rule 61-501 are available. In particular, Innovotech has determined that the exemptions set out in paragraphs 2 and 3 in section 5.5 of OSC Rule 61-501 are applicable since the aggregate consideration to be paid by the Related Parties does not exceed 25% of the market capitalization of Innovotech as at December 21, 2007 and Innovotech is not listed on the Toronto Stock Exchange but only on the TSX Venture Exchange. In addition, in reviewing the minority shareholder approval exemptions, the independent directors determined that the exemption set out in paragraph 2 in section 5.7 of OSC Rule 61-501 is applicable.

The securities issued pursuant the Private Placement are subject to a hold period expiring on April 28, 2008.

About Innovotech Inc:

Innovotech is a product development company focusing on the development of solutions to medical, agricultural and industrial problems caused by microbial biofilms. Biofilms are protected communities of microorganisms which are very common and very difficult to treat due to their inherent resistance. They have been implicated in a host of devastating infections in agriculture, human health and industry. No diagnostics or antibiotics are currently approved for use in infections involving biofilms.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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