Valcent Products Inc.
OTC Bulletin Board : VCTPF

Valcent Products Inc.

April 06, 2006 18:17 ET

Valcent Products Inc. Announces a $551,600 U.S. Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 6, 2006) - Valcent Products Inc. (OTCBB:VCTPF) announced today that it has completed a USD$551,600 private placement of convertible notes and common stock purchase warrants with a syndicated group of institutional investors.

In accordance with their terms, the convertible notes issued in this financing will mature on July 29, 2006 and carry interest at eight percent (8%) per annum. The notes are convertible into shares of the company's common stock based on a formula tied to its market trading price. In addition to the notes, each investor received one three year warrant to purchase up to one additional common share for each USD$0.75 of convertible notes subscribed for in the transaction at a price of USD$0.50 per share, as well as another three year warrant to purchase up to one additional common share for each USD$0.75 of convertible notes subscribed for in the transaction at a price of USD$1.00 per share. Valcent is obligated under the terms of the transaction to register for resale all of the shares into which the notes are convertible and the warrants are exercisable.

"We are very pleased to have completed this transaction, as this financing will provide additional working capital to accelerate our product development and marketing plans," stated Glen M. Kertz, Chief Executive Officer of Valcent.

About Valcent Products Inc.

Valcent Products Inc. is a development-stage company focused on the development and manufacture of a line of consumer products. The company endeavours to become a leading provider of consumer products in each of its respective markets, intending to use retail, wholesale, direct response and online marketing to market and sell its products, initially in North America, and, ultimately, throughout Europe and Asia.

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Valcent Products Inc. to be materially different from the statements made herein. Among others, these risks include but are not limited to the following: (i) limited liquidity and capital resources; (ii) serious business competition, (iii) fluctuations in operating results may result in unexpected reductions in revenue and stock price volatility; (iv) delays in product releases and introductions may result in unexpected reductions in revenue and stock price volatility, and (v) errors or defects in products may cause a loss of market acceptance and result in fewer sales. These, as well as other risks are described in greater detail in the Company's annual report on Form 20-F for the year ended March 31, 2005.

CUSIP: 918881103

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