Radiant Energy Corporation

Radiant Energy Corporation

November 02, 2006 12:03 ET

Radiant Announces Completion of Debt Reduction Transactions and Updates Proposed Private Placement

PORT COLBORNE, ONTARIO--(CCNMatthews - Nov. 2, 2006) - Radiant Energy Corporation ("Radiant" or the "Company") (TSX VENTURE:RDT) developer and marketer of InfraTek®, the environmentally friendly, patented, infrared pre-flight aircraft deicing system, announced acceptance by the TSX Venture Exchange (the "Exchange") of a multi-party transaction for the settlement of US$5.3 million of secured debt held by General Electric Capital Corporation (GECC) to be written down to US$1.75 million for a net gain of US$2.9 for the Company. The Company further announced the settlement of CDN$748,500 of debt for 7,485,000 common shares and changes to a proposed private placement of common shares.

Acceptance by the TSX Venture Exchange for GECC debt purchase

Three significant shareholders and insiders of Radiant purchased the outstanding secured loans, including accrued interest equal to US$5.3 million. The three shareholders completed an agreement with Radiant to write-off US$3.6 million of the debt in exchange for the Company to grant a conversion feature on the remaining US$1.75 million of debt into common shares of Radiant. The net affect on after-tax profits is a gain of US$2.9 million and the gain will be reflected in the October 31, 2006 year-end financial statements. The conversion rate is based on 7.6 common shares per US$1.00 of principal outstanding (approximately CDN$0.15 per share in the first two years), 6.9 common shares per (approximately CDN$0.165 per share in the third year) 6.2 common shares (approximately CDN$0.184 per share in the fourth year) and 5.5 common shares (approximately CDN$0.205 per share in the fifth year). The Purchased Debt bears an annual interest rate equal to 6.75%. The maturity date is August 20, 2011. The debt is secured by the security interest in the patents previously held by GECC. Due to the changes in the Secured Loan the debt was re-titled Series E Secured Convertible Debentures. The three shareholders also hold a convertible secured loan equal to US$750,000 issued by Radiant. The three major holders are now owed US$2.5 million secured by 100% of the patents and all other assets other than the deicing facility in Oslo, Norway. The three shareholders have agreed to convert US$1.75 million of the debt to 13,300,000 common shares if Radiant repays the remaining US$750,000 by November 30, 2006. The common shares if issued will have a four-month hold period from November 1, 2006.

Conversion of Short-term Loans

The TSX Venture Exchange accepted the issuance of 7,485,000 common shares at CDN$0.10 per share to three significant shareholders and insiders of the Company to settle CDN$748,500 of short-term loans advanced to the Company between January 1, 2006 and July 31, 2006. The common shares have a four-month hold period from November 1, 2006.

Private Placement of Common Shares

The Company also announced changes to the private placement of common shares announced on September 19, 2006. The Company reduced the issue price from CDN$0.15 per common share to CDN$0.10 per common share and increased the number of common shares from 30,000,000 to 63,940,000. To date three insiders of the Company subscribed for 7,940,000 common shares. The closing date was extended from October 20, 2006 to November 30, 2006. Multiple closings are allowed.

Radiant has 60,985,217 common shares outstanding before the completion of the above transactions and trades on the TSX Venture Exchange (symbol RDT). The InfraTek Radiant Deicing System, the only FAA-approved for use, non-glycol based alternative to the conventional pre-flight ground deicing process. InfraTek offers substantial savings to airports and airlines by reducing treatment costs and by significantly reducing the negative environmental impact of glycol. The InfraTek Radiant Energy Deicing System is in use at Newark International Airport, and Rhinelander-Oneida County Airport, Wisconsin, with new facilities about to open at JFK Airport, New York and Oslo, Norway.

This press release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Radiant Energy Corporation, which involve risks and uncertainties. These risks and uncertainties may cause Radiant's actual results to differ materially from those contemplated by the forward-looking statements.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contact Information