Advitech Announces a US$500,000 Private Placement with Capitale Financiere Agricole inc.
15 February 2007
Advitech Inc. announces the completion of a private placement of US$500,000, by means of a convertible debenture to Capital Financi*#233;re Agricole Inc. (CFAI).
The capital of the debenture, bearing interest at the annual rate of 12%, will be repayable on January 31, 2012. From closing date until August 31, 2007, interest will be capitalized and will become payable at the end of the term. From September 1, 2007 thereafter, interest will be paid on a monthly basis. The debenture may be repaid by Advitech at any time without penalty. The debenture is also convertible in common shares, at the holder's option, at a conversion price of US$0.15 per common share until January 31, 2008, and of US$0.20 per common share until January 31, 2009.
In accordance with the policies of the TSX Venture Exchange, conversion price will then be increased by ten percent for each subsequent year until the end of the term. The convertible debenture and the common shares, which may be issued following the conversion, are subject to resale restrictions during a four-month period following the closing of the private placement.
The proceeds of this private placement will be applied by Advitech for Dermylex™ marketing and commercialization efforts. Advitech has obtained conditional approval from the TSX Venture Exchange in relation to this private placement.
ABOUT ADVITECH INC.
Advitech is a health sciences and technology company with a mission to discover and commercialize proprietary and evidence-based natural health products. Effective and safe, these products play a role in the prevention of Immune-Mediated Inflammatory Disorders (IMID), such as psoriasis and inflammatory bowel disease. Advitech's common shares are listed on the TSX Venture Exchange under the symbol AVI. The number of common shares outstanding is 61,247,318.
