Xebec Adsorption Inc.

Xebec Adsorption Inc.

November 25, 2009 10:48 ET

Xebec Completes its Previously Announced Private Placement

MONTREAL, QUEBEC--(Marketwire - Nov. 25, 2009) -


Xebec Adsorption Inc. (TSX:XBC) ("Xebec") a provider of biogas upgrading, natural gas and hydrogen purification solutions is pleased to announce the completion of its private placement of units ("Offering") previously announced on November 17, 2009. Xebec issued a total of 8,585,400 units ("Units") at a price of $0.75 per Unit for gross proceeds of $6,439,050. Each Unit consisted of one common share of Xebec ("Common Share") and one half of one common share purchase warrant ("Warrant"). The proceeds will be used for working capital and general corporate purposes.

Each whole Warrant will entitle the holder to purchase one additional Common Share from treasury at an exercise price of $1.10 for a period of 18 months from closing. The Warrants are subject to an accelerated expiry if, at any time after December 31, 2009, the published closing trade price of the Common Shares on the Toronto Stock Exchange ("TSX") is equal or superior to $1.60 for any 20 consecutive trading days, in which event Xebec may give the holder a written notice that the warrants will expire at 5:00 p.m. (Toronto Time) on the 30th day from the receipt of such notice. The Offering was made on a best effort basis by Canaccord Adams ("Canaccord"), acting as sole agent for Xebec.

Canaccord received brokers warrants (the "Brokers Warrants") equivalent to 6.0% of the Common Shares underlying the Units issued in connection with the Offering for a total of 515,124 Brokers Warrants. Each Broker Warrant will entitle Canaccord to purchase one Common Share at $0.77 for a period of 18 months following completion of the Offering.

Special Situations Fund (the "Funds"), a group of funds purchased 3,333,400 Units pursuant to the Offering. Following completion of the Offering, Funds are now direct and indirect holders of over 8,443,900 Common Shares representing approximately 24.1% of the issued and outstanding Common Shares (on a non-diluted basis).

Xebec now has 35,096,694 Common Shares issued and outstanding.

About Xebec Adsorption Inc.

Xebec Adsorption Inc. is a global provider of clean energy solutions to corporations and governments looking to reduce their carbon footprints. With more than 1,300 customers worldwide, Xebec designs, engineers and manufactures innovative products that transform raw gases into marketable sources of clean energy. Xebec's strategy is focused on establishing leadership positions in markets where demand for biogas upgrading, natural gas dehydration and hydrogen purification is growing. Headquartered in Montreal (QC), Xebec is a global company with two state-of-the-art manufacturing facilities in Montreal and Shanghai, a R&D facility in Vancouver (BC) as well as a sales and distribution network in North America, Asia and Europe. Xebec (www.xebecinc.com) trades on the TSX under the symbol XBC.

Caution Concerning Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking" statements within the meaning of applicable securities laws. This forward looking information includes, but is not limited to, the expectations and/or claims of management of Xebec with respect to information regarding the business, operations and financial condition of Xebec. Forward-looking information contained in this press release involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Xebec or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This list is not exhaustive of the factors that may affect forward-looking information contained in this press release. When used in this press release, such statements use such words as "anticipate", "believe", "plan", "estimate", "expect", "intend", "may", "will" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this presentation. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements.

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