Innovative Composites International Inc.
TSX VENTURE : IC

Innovative Composites International Inc.

December 15, 2011 09:24 ET

Innovative Composites International Inc. Announces Closing of Financing

TORONTO, ONTARIO--(Marketwire - Dec. 15, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Innovative Composites International Inc. (TSX VENTURE:IC) (the "Company" or "ICI") is pleased to announce the closing of its previously announced bought deal public offering of 13,400,000 common shares (the "Common Shares") of the Company at a price of $0.75 per Common Share, for aggregate gross proceeds of $10,050,000 (the "Offering"). The Offering was conducted through a syndicate of underwriters co-led by Canaccord Genuity Corp. and Clarus Securities Inc., and including Raymond James Ltd., Cormark Securities Inc. and Union Securities Ltd. (the "Underwriters"). In connection with the Offering, the Company issued 670,000 broker warrants to the Underwriters, each broker warrant entitling the holder to acquire one additional common share of the Company at an exercise price of $0.75 for 24 months after the closing.

The Underwriters also have the option (the "Over-Allotment Option"), exercisable in whole or in part at any time up to 30 days after the closing of the Offering, to purchase up to an additional 15% of the Offering solely to cover over-allotments, if any, and for market stabilization purposes. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the Offering will be approximately $11.6 million.

The Company plans to use the net proceeds for plant expansion and general corporate purposes.

The common shares being sold pursuant to the offering have not, and will not be, registered under the United States Securities Act of 1933 (the "1933 Act") and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. Persons (as such term is defined in Regulation S under the 1933 Act) absent registration under the 1933 Act or an applicable exemption from the registration requirements thereof.

About Innovative Composites International Inc.

Headquartered in Toronto, Canada, Innovative Composite International Inc. is a high tech engineering and manufacturing company that is successfully commercializing a patent protected line of state-of-the-art composite products targeted at the multi-billion dollar transportation and affordable housing markets.

Led by a team of commercialization experts, ICI has adopted a tier two business model: it designs and manufactures game-changing products and partners with established companies in its target markets to utilize their sales channels for faster product roll-out.

This strategy and the superior characteristics of the products have resulted in rapidly growing sales in both markets and opened up opportunities that could lead to large scale contracts on an ongoing basis.

To find out more about Innovative Composites International Inc. (TSX VENTURE:IC), please visit our website at http://www.innovativecompositesinc.com.

Statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in its target markets, the demand for ICI's products and the availability of funding. These forward-looking statements are made as of the date hereof and ICI does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from ICI's expectations and projections.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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