Innovative Properties Inc.
TSX VENTURE : INR

Innovative Properties Inc.

February 20, 2009 08:25 ET

Innovative Properties Inc.: Private Placement-Closing of Initial Tranche

HALIFAX, NOVA SCOTIA, CANADA--(Marketwire - Feb. 20, 2009) - THIS RELEASE IS NOT FOR DISSEMMINATION IN THE UNITED STATES OR FOR RELEASE TO U.S. NEWSWIRE SERVICES.

Innovative Properties Inc. (the "Corporation") (TSX VENTURE:INR) is pleased to announce that it has completed the first tranche closing of its nonbrokered private placement. The Corporation announced on January 15, 2009 its intention to raise gross proceeds of up to $315,000 in tranches.

The first tranche closed yesterday evening with gross subscription proceeds in the amount of $87,755 and the issuance of 1,253,640 units (the "Units"). A portion of the Units were eligible for an equity tax credit pursuant to the Equity Tax Credit Act (Nova Scotia). The Corporation also wishes to disclose that approximately 35% of the Units issued to first tranche closing subscribers were insiders of the Corporation.

The total offering will consist of the issuance of up to 4,500,000 Units, each Unit being offered at a price of $0.07 and consisting of one common share and one common share purchase warrant of the Corporation. Each common share purchase warrant will be exercisable at $0.14 per common share and must be exercised within 24 months of closing. The last tranche will close on or before March 6, 2009.

As a finder's fee, the Corporation will pay up to 7% of the aggregate gross proceeds of the offering payable in cash or in additional units having the same terms as the Units of the offering. The first tranche closed yesterday and the Corporation paid a finder's fee with the issuance of 24,500 Units of the Corporation.

The funds raised from the issuance of the Units will be used for general corporate purposes and the advancement of the development activities of the Corporation.

The offering is subject to TSX Venture Exchange approval and all other required approvals. All securities issued in connection with this offering will be subject to a four-month hold period in accordance with securities requirements. The Corporation has 19,943,330 issued and outstanding common shares.

The Securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") and were offered and sold within the United States only to Accredited Investors (as defined in Rule 501(a) of Regulation D under the U.S. Securities Act). Prospective subscribers of the Units in the United States are hereby notified that the seller of the Units is relying upon the exemption from the provisions of Section 5 of the U.S. Securities Act provided in Section 4(2) of the U.S. Securities Act for non-public offerings. The Securities offered hereby are not transferable except in accordance with the restrictions described herein.

ABOUT INNOVATIVE PROPERTIES INC.

Innovative Properties Inc. is a publicly traded Canadian corporation involved in property management and the development and management of real estate. We apply the latest technologies to enhance returns to property owners and developers creating value for our shareholders. We continually seek out opportunities to innovate in the real estate industry.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this Release. Innovative Properties Inc. seeks safe harbour.

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