August 10, 2007 17:57 ET

CCR Technologies Ltd. Announces Proposed $7.524 Million Private Placement of Common Shares, Agreement to Repay $5.0 Million Convertible Debentures and New Contracts

CALGARY, ALBERTA--(Marketwire - Aug. 10, 2007) - CCR Technologies Ltd. (TSX:CRL) ("CCR" or the "Company"), a leading chemical purification technology solutions and service provider, announces that the Company has entered into a letter of intent to repay $5 million convertible debentures (the "Debentures") held by Quorum Investment Pool Limited Partnership and related parties ("Quorum"). To fund the repayment of the Debentures, the Company has received a commitment from certain insiders of the Company to participate in a $7.524 million private placement of common shares at an issue price of $0.18 per common share. In addition to financing the repayment of the Debentures, the private placement will involve the conversion of certain secured and unsecured indebtedness owed by the Company to certain insiders of the Company in the aggregate principal amount of $2,524,000.

To date, certain directors, insiders and their associates or affiliates have advanced $1,524,000 in funds to the Company in the form of unsecured and secured loans. It is anticipated that an additional $1,000,000 will be advanced to the Company within the next 30 days bringing the aggregate amount of the funds advanced to $2,524,000. These funds were used or are intended to be used to strengthen the Company's ongoing working capital requirements and position it for future growth.

As the private placement involves insiders and related parties of the Company, it is subject to disinterested shareholder approval, to be requested at a special meeting of shareholders anticipated to be held before September 30, 2007. Information and proxy materials will be mailed to shareholders in the near future. The insiders who have committed to subscribe to the full private placement have the option to nominate other subscribers to take all or a portion of their committed funds.

Tom Coyne, the Company's CEO, stated, "we have made significant progress in improving CCR's operations over the past six months, and implementing our plan to substantially increase the value we create for our clients and shareholders. Not only have we significantly raised the utilization rate for our four mobile units, but we have recently signed three important new engineering project contracts."

"The first two are front-end loading (FEL-1) contracts with major exploration and production companies to study hydrate risk management alternatives for the development of offshore gas deposits. The third contract is with a Canadian petroleum company, for a new Shell Paques biodesulphurization unit. In the short term, it is anticipated these contracts will generate over $500,000 in revenue."

Coyne noted that, "we are excited about these contracts for three reasons. First, we believe that properly executed FEL studies - essentially, early stage project conceptual design and economic analyses - are critical for our clients' risk management in an era of rapidly escalating LNG project costs and the development of ever more challenging offshore gas fields. Second, the FEL-1 contracts have the potential to lead to larger contracts if these projects proceed to the development stage. Finally, with more sour gas deposits being developed around the world, we believe that continuing improvements in the biodesulphurization technology and the environmental benefits it offers make it a very attractive option for clients that need to remove mid-range quantities of hydrogen sulfide from gas streams."

However, Coyne noted that "while we are making good progress in revitalizing CCR, we also recognize that all growth plans experience cash flow lags and uncertainties, when investment runs ahead of revenues. In this regard, the amount of debt in CCR's current capital structure and the associated covenants represents a constraint on our ability to grow the Company. For that reason, we concluded that a recapitalization of CCR's balance sheet would be in the best long-term interest of our shareholders. The repayment of the Quorum Debentures and the conversion of other debt advanced to the Company by way of this private placement will achieve this goal and strengthen our ability to pursue our strategic growth objectives." Regarding the proposed private placement, Coyne also noted that "the $0.18 price for each common share offered was based on current market pricing and the fact that common shares were just offered to all existing shareholders under our rights offering at the same price."

The securities issued pursuant to the private placement will be subject to a four month hold period. The number of common shares issued under the private placement will be approximately 41,800,000 resulting in 87,044,266 common shares outstanding, after completion of the private placement.

About CCR Technologies

CCR Technologies purifies process chemicals and removes impurities from natural gas through the use of proprietary patented separation technologies. The Corporation provides environmental and economic benefits to the upstream and downstream oil and gas industries, and is also pursuing new environmental business opportunities in other industries and international markets. CCR's proven, patented technology is applied via a fleet of mobile units that purify chemicals both on and off client sites. CCR also provides design, engineering and project management services for permanent large scale industrial installations that use its technology, primarily in refineries and offshore gas production. CCR is also the authorized Canadian and South American licensor of the Shell - Paques Biological Gas Desulphurization process for natural gas applications. Other liquid and gas separation technologies are in development. For information, please visit the CCR Technologies website at:

Shares of CCR Technologies Ltd. trade on the Toronto Stock Exchange under the symbol "CRL".

The above disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond CCR's control, including: the impact of general economic conditions in Canada and in countries in which CCR and its subsidiaries currently do business, industry conditions, increased competition, the lack of available qualified personnel or management, equipment failures, fluctuations in product prices and in foreign exchange or interest rates and stock market volatility. CCR's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits CCR will derive there from.

Contact Information

  • CCR Technologies Ltd.
    Tom Coyne
    President and CEO
    (403) 543-6699
    CCR Technologies Ltd.
    Alan D. Mosher C.A
    Vice President and Chief Financial Officer
    (403) 543-6699