Radiant Energy Corporation
TSX VENTURE : RDT

Radiant Energy Corporation

December 20, 2006 08:00 ET

Radiant Announces Completion of Private Placement and Shares for Debt Transaction

PORT COLBORNE, ONTARIO--(CCNMatthews - Dec. 20, 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 non-brokered private placement for 12,935,825 common shares and the settlement of accrued interest and principal on Series E Debentures through the issuance of 8,204,175 common shares.

Settlement of Series E Secured Convertible Debentures

The Company settled C$820,417 comprised of US$750,000 (C$808,000) of Series E Debentures principal accrued interest equal to US$11,495 (C$12,417) through the issuance of 8,204,175 commons shares at a deemed price of C$0.10 per common share.

Three significant shareholders and insiders of Radiant held US$1,750,000 Series E Debentures and Secured Loans of US$750,000. If the repayment of the Series E Debentures and accrued interest had occurred prior to November 30, 2006, the three significant shareholders had agreed to convert the remaining Series E Debentures and Secured Loans to common shares at a rate equal to C$0.15 per common share. In consideration for the late payment the three holders have now agreed to convert the remaining US$1,000,000 Series E Debentures and the US$750,000 Secured Loan to 13,225,000 common shares at C$0.15 per common share if the Company raises US$3,500,000 in common share equity by June 30, 2007. On conversion of the Series E Debentures and the Secured Loan, the patents and all other assets owned by the Company, other than the deicing facility in Oslo, Norway and related security deposit, will no longer be pledged as security against any debt debts of the Corporation. The common shares issued will have a four-month hold period from November 2, 2006.

As reported in our press release dated October 24, 2006, the Series E Debentures resulted from the purchase the Radiant's outstanding secured loans, including accrued interest equal to $5.3 million from GE Capital by three significant shareholders and insiders of Radiant. At the time the three shareholders agreed to write down the purchased debt to their purchase price of US$1,750,000. The net affect on after-tax profits is a gain of US$2.9 million and a reduction in debt of $3.6 million. The three significant shareholders paid all remaining obligations they had with GE Capital. Radiant and the three significant shareholders no longer have debt obligations to GE Capital.

Private Placement of Common Shares

The Company received final acceptance from the TSX Venture Exchange for the issuance of 12,935,825 common shares issued at C$0.10 per share for total gross proceeds equal to C$1,293,582.50. Finders fees of C$100,000 were paid to a broker in Ontario based on 8% of the gross proceeds of the subscriptions obtain through their efforts. Proceeds, net of commissions and net of filing fees, were C$1,186,615. The common shares will have a four-month hold period from December 7, 2006.

Radiant has 89,610,217 common shares outstanding after the completion of the above transactions and trades on the TSX Venture Exchange (symbol RDT). The InfraTek Deicing System is the only FAA-approved for use, non-glycol based alternative to the conventional pre-flight ground deicing process. InfraTek offers savings to airports and airlines by reducing treatment costs and by significantly reducing the negative environmental impact of glycol. The InfraTek 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.

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