Innovative Properties Inc.
TSX VENTURE : INR

Innovative Properties Inc.

March 09, 2009 08:32 ET

Innovative Properties Inc./Private Placement-Final Closing

HALIFAX, NOVA SCOTIA--(Marketwire - March 9, 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 its non-brokered private placement for a total of $315,000 of proceeds as announced on January 15, 2009.

The final tranche closed last week with gross subscription proceeds in the amount of $227,245 and the issuance of 3,246,355 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 total offering consisted of the issuance of 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 each closing.

As a finder's fee, the Corporation had announced it would 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 final tranche paid only one finder's fee with the issuance of 15,000 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 and its two subsidiaries.

The offering is subject to TSX Venture Exchange final 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. Prior to the closing of this second tranche, the Corporation had 21,221,470 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.

The Corporation is a publicly traded Canadian corporation involved in property management and the development and management of real estate and real estate related technologies. The Corporation and its two subsidiaries' business is providing property management products and services to residential and commercial property owners.

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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