IRI Separation Technologies Inc.

IRI Separation Technologies Inc.

November 15, 2006 18:56 ET

IRI Separation Technologies Inc. Announces Completion of $1.4M Private Placement and Closing of Acquisition

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 15, 2006) - IRI Separation Technologies Inc. (TSX VENTURE:IRI) is pleased to report the completion of a non-brokered private placement, as disclosed in a news release issued on October 6, 2006. The company closed on the sale of 2,333,333 units at $0.60 per unit (a "Unit"), for gross proceeds of $1,400,000.

Each Unit consists of one common share and one-half of one non-transferable warrant, each whole warrant entitling the holder to purchase one common share for 12 months at $1.00 per share. The company issued 163,333 additional Units as finders' fees in connection with the private placement. The proceeds from the sale of the Units will be used to fund down payments on certain supplies and equipment necessary to increase production capacity to 5,000kg of immunoglobulin per month by late spring 2007 and for working capital. All securities are subject to a four month hold period commencing November 10, 2006.

The company is also pleased to report that it has closed the transaction for the acquisition of all the assets of Iso-Tech Research Inc., Vanderpol Egg Products Inc., and Immune Bio-Tech Inc. (the "Vendors"). The aggregate purchase price was $1,921,325, which was based upon an independent appraisal of the assets that was conducted on behalf of IRI Separation. The purchase price was payable by the issuance of 3,500,000 common shares of the company at a deemed price of $0.4803 per share, and a promissory note in the amount of $240,275. The promissory note carries an interest rate of six percent per annum and is due on October 10, 2007 unless the company provides notice to the Vendors that the company will repay the promissory note in full prior to the due date and does so. The common shares issued by the company in consideration for the assets will be subject to a four month hold period which commenced on October 10, 2006.

The company anticipates closing, within the next 10 days, the acquisition of Simplimix Foods Inc. as disclosed in the company's news release of October 5, 2006.

About IRI Separation Technologies Inc.

IRI Separation Technologies Inc. (TSX VENTURE:IRI) is a biotechnology company that specializes in the extraction, development and commercialization of monoclonal and polyclonal immunoglobulin antibodies for virus and bacteria related health issues. Intended for use as a nutraceutical for human consumption, the antibodies are derived from bovine whey and chicken eggs. The immunoglobulin antibodies are intended for both the general and specific antibody market.

On behalf of the Board of Directors

John Mason, President and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Ascenta Capital Partners Inc.
    Jim Glass
    Investor Relations
    (604) 684-4743 ext.225 or Toll Free: 1-866-684-4743 ext.225
    IRI Separation Technologies Inc.
    Vancouver Office
    John Mason
    (604) 807-8694
    (604) 926-1485 (FAX)