IPICO Inc.
TSX VENTURE : RFD

IPICO Inc.

May 29, 2006 08:30 ET

REPEAT: Brookfield Technology Fund Acquires Preferred Shares and Warrants of IPICO Inc.

TORONTO, ONTARIO--(CCNMatthews - May 29, 2006) - IPICO Inc. (TSX VENTURE:RFD) -

May 29, 2006: The following announcement was previously distributed by Brookfield Technology Fund. For the record, IPICO Inc. wishes to ensure that its investors are fully apprised of the information contained here.

BROOKFIELD TECHNOLOGY FUND ACQUIRES PREFERRED SHARES AND WARRANTS OF IPICO INC.

TORONTO, April 20, 2006 - Brookfield Technology Fund ("BTF") announces that with the amalgamation on March 31, 2006 of Amtag ID Inc. and Anitech Enterprises Inc. to form IPICO Inc. ("IPICO"), it acquired ownership of 5,000,000 preferred shares and 5,000,000 share purchase warrants of IPICO, each warrant entitling the holder to acquire one common share at an exercise price of $1.30 for three years. Each preferred share is convertible into one common share, subject to adjustments, and entitles the holder to one vote. BTF initially acquired preferred shares and warrants of Amtag ID Inc. pursuant to a private placement completed in March 2006 for an aggregate C$5 million. BTF does not hold any other shares of IPICO. In the event that all of the preferred shares were converted into common shares and all of the warrants were fully exercised, these holdings would represent approximately 28.9% of the total issued and outstanding common shares of IPICO as of March 31, 2006, calculated on a partially diluted basis assuming the conversion of the preferred shares and exercise of the warrants only. To the best knowledge of BTF, IPICO has 24,650,320 common shares and 5,000,000 preferred shares issued and outstanding.

These transactions were made for investment purposes and BTF could increase or decrease its investment in IPICO depending upon market conditions and other factors. All but 500,000 preferred shares and 500,000 warrants are currently escrowed under the terms of an escrow agreement dated March 31, 2006 with CIBC Mellon Trust Company as escrow agent. This escrow agreement was entered into at the request of the TSX Venture Exchange. 750,000 preferred shares and 750,000 warrants will be released on October 10, 2006 and at every six month interval thereafter.

The Brookfield Technology Fund was established by Brookfield Asset Management to invest in early stage, technology-based companies with high growth potential. With US$35 million in capital, the Technology Fund is primarily focused on strategic investments in companies whose products or services may have an application within Brookfield.

Contact Information

  • Brookfield Asset Management
    Katherine C. Vyse
    SVP, Investor Relations and Communications
    (416) 369-8246
    kvyse@brookfield.com