Brookfield Technology Fund

Brookfield Technology Fund

September 30, 2010 17:44 ET

Brookfield Technology Fund Increases Investment in IPICO Inc.

TORONTO, ONTARIO--(Marketwire - Sept. 30, 2010) - Brookfield Technology Fund ("BTF") announced that it has now purchased $1.5 million of the previously announced $2.0 million principal amount of the 12% convertible Series C secured debentures due September 30, 2012 of IPICO Inc. (TSX VENTURE:RFD) ("IPICO") and warrants for the purchase of up to 15 million common shares of IPICO. The principal amount of the debentures is convertible into common shares of IPICO at $0.10 per share. Each warrant will entitle the holder to purchase one common share for $0.10 and expire September 30, 2012. The conversion price of the $5.0 million Class A Preferred Shares of IPICO held by BTF has also been reduced to $0.10 per share as earlier announced. The purchase of the remaining $500,000 of debentures and 5.0 million warrants is subject to the satisfaction of conditions including TSXV approval. 

BTF now owns 3,164,557 common shares, 5.0 million Class A Preferred Shares convertible into 50 million common shares, $1.5 million principal amount of the 12% convertible Series C secured debentures convertible into 15.0 million common shares and warrants to purchase 15,350,000 common shares. This brings BTF's beneficial ownership of common shares (including common shares issuable upon conversion or exercise of securities held by BTF) to 83,514,557 common shares (42.7% of the outstanding common shares on a fully diluted basis and 61.4% of the outstanding common shares on a partially diluted basis). If BTF were to purchase the remaining $500,000 of convertible debentures and warrants for the purchase of up to 5.0 million common shares, BTF would own 64.1% of the outstanding common shares on a partially diluted basis.

BTF entered these transactions for investment purposes. BTF may increase or reduce its investment in IPICO according to market conditions or other relevant factors.

The news release is being issued pursuant to Part 3 of National Instrument 62-103 The Early Warning System and Related Take-Over Bid and Insider Reporting Issues of the Canadian Securities Administrators. 

A copy of the early warning report in respect of this acquisition will be available at www.sedar.com. For additional information, or for a copy of the early warning report filed in respect of the above, please contact:

Stephen A. Adams
Brookfield Technology Fund
Tel: (416) 510-5773
Email: sadams@brookfield.com

NOTE: This news release contains forward looking information regarding Brookfield Technology Fund's ("BTF") future intentions with respect to its investment in IPICO and future holdings in such company. The words "may", "will", "would" and other expressions which are predictions of or indicate future events and which do not relate to historical matters identify forward looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors. Factors that could cause BTF's actual holdings to differ materially from those set forth in the forward looking statements include the non-completion of the last $500,000 tranche or a sale of all or part of its holdings. BTF undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.

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