September 17, 2007 18:29 ET

CCR Technologies Ltd. Board Recommends Approval of Recapitalization Plan

CALGARY, ALBERTA--(Marketwire - Sept. 17, 2007) - CCR Technologies Ltd. (TSX:CRL) ("CCR" or the "Company"), a leading chemical purification technology solutions and service provider, announces that the Company will hold a special meeting (the "Meeting") of the shareholders on September 25, 2007 in Calgary, Alberta. At the Meeting, shareholders will be asked to approve a private placement and debt settlement arrangement whereby CCR will issue up to 41,800,000 common shares at a price of $.18 per common share involving certain insider shareholders and other possible arm's length purchasers. The $7.5 million total of funds raised and debt converted is intended to strengthen the Company's working capital position. Approximately $5 million will be used to repay outstanding convertible debentures.

As the private placement involves several insiders of CCR, the Company requires approval of the transaction by shareholders that do not have an interest in the transaction. The Company asks that shareholders review the management information circular that has been mailed to them and encourages that they vote in person or via proxy in respect of the above matter.

The following is an excerpt from a letter to shareholders from the CCR board of directors which accompanied the management information circular.

Significant progress has been made over the past six months in improving the Company's operations and implementing plans to substantially increase the value created for clients and shareholders.

Mobile unit utilization has recovered from the first quarter where the 2 North American units were shut down to today where all four units are operational.

New engineering project contracts have been signed to study hydrate risk management alternatives for the development of offshore gas deposits with the potential to lead to larger contracts.

A new Shell Paques biodesulphurization project is in progress.

CCR's management team has been augmented by the recent hires of experienced senior executives in the areas of Operations and Business Development.

The revitalization of CCR is forging ahead, however management and the board of directors are fully aware that all growth plans experience cash flow lags and uncertainties. In this regard, the amount of debt in CCR's existing capital structure and the associated covenants represents a significant constraint on the Company's continued ability to grow.

Accordingly, the board of directors has concluded that a reorganization of the financial affairs of the Company is in the best long-term interest of shareholders as it will provide the Company with more flexibility in meeting its current and prospective business requirements, strengthen the Company's working capital position and significantly improve the balance sheet of the Company. Converting existing debt to equity will also allow the Company to pursue conventional financing alternatives resulting in an overall reduction in its cost of capital.

The $.18 issue price per common share was considered appropriate based on current market pricing and the fact the common shares were recently offered to all existing shareholders under a recent rights offering at the same price.

The board of directors has unanimously determined (with appropriate directors abstaining due to a conflict of interest) that the proposed Private Placement and associated debt settlement transactions are reasonable in light of the Company's recent operating history, current financial position and ongoing operational and strategic objectives and recommends that shareholders vote in favour of the Private Placement.

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