IPICO Inc.
TSX VENTURE : RFD

IPICO Inc.

February 26, 2008 09:09 ET

IPICO Closes its Public Offering of Units

BURLINGTON, ONTARIO--(Marketwire - Feb. 26, 2008) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

IPICO Inc. (TSX VENTURE:RFD) is pleased to announce that it has closed its previously announced short form public offering of 5,212,633 units ("Units") at a price of C$1.20 per Unit, for gross proceeds of C$6,255,160. The offering was underwritten by a syndicate led by Wellington West Capital Markets Inc. and included Desjardins Securities Inc. (together, the "Underwriters"). Each Unit consists of one common share of the Company (a "Common Share") and one common share purchase warrant (a "Warrant").The Company closed on a base offering of 5,000,000 Units as well as a partial exercise of the over-allotment option granted to the Underwriters for an additional 212,633 Units.

The over-allotment option is exercisable for a period of 30 days from the date of the closing of the offering, to purchase up to an additional 750,000 Units and/or Warrants (of which 537,367 Units and/or Warrants remain available under the over-allotment option) at the issue price per Unit or at C$0.19 per Warrant to cover over-allotments, if any, and for market stabilization purposes. If the over-allotment option is exercised in full, the total Units sold under the offering will be 5.75 million Units, for total gross proceeds of the offering of approximately C$6.9 million.

Each Warrant entitles the holder to purchase one Common Share of the Company for a period of 24 months from closing at an exercise price of C$1.35 per Common Share. In the event that the common shares of the Company trade on the TSX-V at a weighted-average closing price of 145% of the Warrant exercise price or more for a period of at least 20 consecutive trading days following the closing of the offering, the Company shall be entitled to accelerate the exercise period to a period ending at least 30 days from the date notice of such acceleration is provided to the holders of Warrants.

As previously announced, the net proceeds of the offering will be used to fund the deployment of the Company's products under existing agreements, further development and certification of the Company's products, expansion of the Company's sales and product delivery capabilities, and for general working capital and corporate purposes. The Company has paid the Underwriters a cash commission of 6.0% of the gross proceeds of the offering.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About IPICO Inc.: IPICO Inc. is an RFID solution supplier with operations in Canada, USA, South Africa, Europe, Asia and Australia. IPICO produces smart labels and tags based on the IP-X communication protocol. IPICO's low interference readers are designed to meet regulatory requirements in many major markets, and allow for multi-reader rollout in close proximity. IPICO's low cost RFID products excel at long read range, fast multi-read anti-collision and high thru-beam read-speeds of dynamic tag populations. These products are used to optimize the management of items, people, animals and processes within the logistic supply chain and other value chains. For further information, go to www.ipico.com.

THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO PURCHASE SECURITIES OF THE COMPANY IN ANY JURISDICTION.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.

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