EDMONTON, ALBERTA--(Marketwire - June 13, 2012) - Innovotech Inc. (TSX VENTURE:IOT) is pleased to announce that, further to its press release of April 26, 2012, it has received final acceptance from the TSX Venture Exchange for a non brokered private placement of 1,630,194 units ("Units") at a price of $0.32 per Unit (the "Offering") for gross proceeds of approximately $521,660. Each Unit is comprised of one (1) common share ("Common Share") and one (1) Common Share purchase warrant ("Warrant"). Each Warrant entitles the holder to purchase one (1) additional Common Share at a price of $0.40 per Common Share for a period of three (3) years following the date of closing, provided that if the trading volume of the Common Shares on the principal market on which such shares trade is equal to or exceeds 100,000 Common Shares in any given thirty (30) consecutive days prior to the expiration date of the Warrants (the "Acceleration Period") and on each day the shares trade the closing price is $0.60 per Common Share or greater, then the Warrant shall automatically accelerate to expire fourteen (14) days following the last day of the Acceleration Period.
Innovotech intends to use the proceeds from the Offering for to support marketing of its veterinary and human test kits and to support efforts to gain regulatory approval of its agricultural industry products.
The participation in the private placement by a director of Innovotech may be considered a "related party transaction" (the "Related Party") as defined under Multilateral Instrument 61-101 ("MI 61-101"). Innovotech has determined that exemptions from the formal valuation and minority shareholder approval requirements under MI 61-101 are available. In particular, Innovotech has determined that the exemptions set out in paragraphs (a) and (b) in section 5.5 of MI 61-101 are applicable since the aggregate consideration to be paid by the Related Party does not exceed 25% of the market capitalization of Innovotech as at June 8, 2012 and Innovotech is not listed on the Toronto Stock Exchange but only on the TSX Venture Exchange. In addition, in reviewing the minority shareholder approval exemptions, the independent directors determined that the exemption set out in paragraph (1)(b) in section 5.7 of MI 61-101 is applicable.
The securities issued pursuant to the Offering are subject to a hold period expiring on October 12, 2012.
About Innovotech Inc.
Innovotech Inc. is a pioneer in the field of biofilm product development, focused on providing innovative and practical solutions to medical, agricultural and industrial problems caused by microbial biofilms. Biofilms are organized communities of microorganisms that exist in virtually every natural environment and are responsible for a host of diseases in human health, animal health and agriculture. There are few products or regulatory standards, aside from those of Innovotech, designed specifically for biofilm-forming organisms.
Innovotech has a broad range of products that address the issue of biofilms within a number of different industries, including commercially available products in three market segments; the MBEC Assay™, bioFILM PA™, InnovoSCEPT-Human and InnovoSCEPT-Veterinary tests. The MBEC Assay™ is a high throughput biofilm growth device that was recently approved as an ASTM International standard. bioFILM PA™ and InnovoSCEPT-Human are the first diagnostic tests to assist physicians in the selection of the most effective antibiotic treatment for patients with biofilm-based chronic infections, while the InnovoSCEPT veterinary tests are designed to determine the most effective antibiotic treatment for chronic infections in both large and small animals.
Innovotech also has two products in advanced stages of development; Agress® is a unique, environmentally friendly seed treatment and plant spray designed to protect crops against both bacterial and fungal infections and AgreGuard™ is a unique antimicrobial for coating medical devices such as catheter.
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.